Managing Change Orders in Your Budget

What change orders are, when to use them, and how they affect your budget and lender documentation.

What is a Change Order?

A change order is a formal modification to your original budget. It documents any additions, deletions, or changes to the scope of work and their financial impact.

When to Use Change Orders

• Adding something not in the original budget (e.g., upgrading to hardwood floors)
• Removing a planned item (e.g., deciding not to finish the basement)
• Price increases from subcontractors
• Unexpected conditions requiring additional work

How to Create a Change Order

1. Go to the **Budget** page
2. Click the **Change Orders** button
3. Enter a description, amount, and whether it's bank-funded
4. Submit the change order

Impact on Your Budget

Change orders adjust your budget totals and are documented in your draw packets for your lender to review.

> WARNING: Always create a change order BEFORE authorizing the work. Verbal agreements without documentation lead to disputes and budget overruns.