Overview
Scope changes are a fact of life on construction projects. The client wants a different finish, an unforeseen condition adds work, the drawings don't match field conditions, whatever the reason, work outside the original contract needs to be captured formally or it becomes work you perform without getting paid for it.
Change orders are how contractors protect themselves. They formalize the scope change, establish the new cost and pricing, get client sign-off before work proceeds, and automatically update the project budget once approved. Structur's Change Order feature brings this entire process into one structured workflow, so every scope change is documented, priced correctly, and traceable from request to approval to budget update.
Structur also supports change orders on the subcontract side, allowing you to manage adjustments to subcontractor agreements in the same structured way you manage client-facing changes.
Understanding Change Orders
What It Does
Structur's Change Orders feature allows you to:
Create formal change order records tied to a specific project
Set a clear, descriptive title for every change
Adjust profit and overhead percentages per change order, independently of the original estimate if needed
Add a detailed description of the scope change, the reason for it, and all associated costs
Add cost code items and groups with full line-item cost breakdowns, exactly like building an estimate
Apply terms and conditions automatically from your company defaults
Send the change order to the client for formal approval
Automatically update the project budget (Revised Budget) once a change order is approved
Ensure new invoices reflect approved change order amounts
Maintain a full activity log showing who took which actions, approvals, declines, and modifications, with timestamps
Delete change orders that were created in error, with recovery available via Restore Mode
Manage subcontract change orders to formally adjust subcontractor agreements when scope changes affect their work
When to Use It
Change orders are most valuable when you need to:
Capture any work that falls outside the original contract scope before proceeding
Get formal written client approval on additional costs before executing changed work
Protect your margin by ensuring every added scope item is priced with the correct overhead and profit
Update your project budget to reflect scope changes without manual recalculation
Create a documented record of every change for compliance, dispute resolution, or project closeout
Adjust a subcontractor's agreement when a client-approved change order adds work to their scope
Step-by-Step Instructions
1. Navigate to Change Orders
Open an active project in Structur
Click Financial Management dropdown
Select Change Orders
You'll see a list of all change orders for that project, with their current status.
2. Create a New Change Order
Click New Change Order
Give the change order a clear, descriptive title that identifies the scope change at a glance
Example: "Owner-Requested Kitchen Upgrade - Countertop Change to Quartz" is immediately understandable months later. "Change Order 4" tells you nothing without opening it.
3. Set Profit and Overhead Percentages
By default, the profit and overhead percentages on a new change order will match those from your company settings. However, you have the flexibility to adjust these for each change order independently.
This is useful when:
A scope change involves higher-risk or more complex work that warrants a different margin
Material costs on the change differ significantly from the original estimate assumptions
The client has negotiated different terms for a specific scope addition
Review and update these percentages before finalizing the change order to ensure you're protecting your margin on the new work.
4. Describe the Change Order
Write a detailed description of the change order, covering:
The specific reason for the change, client request, unforeseen condition, drawing discrepancy, etc.
The exact scope of the modification, what is being added, removed, or changed
Any relevant context that helps the client understand why the change is necessary and what it involves
A thorough description reduces the likelihood of disputes and gives the client everything they need to make an informed approval decision.
5. Add Cost Code Items and Groups
Build out the financial scope of the change order exactly as you would an estimate:
Add cost code items or groups to the change order
For each item, enter:
Description
Quantity
Unit amount
The system calculates totals automatically
Overhead and profit are applied to arrive at the final client-facing amount
This level of detail ensures the change order reflects the true cost of the added work, with your margin properly protected.
6. Review Terms and Conditions
Your default terms and conditions from company settings are automatically applied to each new change order. Review them before sending and adjust if the specific circumstances of this change require different terms.
7. Send the Change Order to the Client
Once the change order is complete:
Send it to the client for approval
The client receives the change order and can review the full scope, cost breakdown, and terms
The change order remains in a pending state until the client takes action.
8. What Happens After Client Approval
When the client approves the change order, Structur automatically:
Updates the Revised Budget - the new cost code items and groups are added to the project budget, increasing the budget baseline to include the approved scope change
Updates invoicing - the approved change order amount is reflected in any new invoices generated for the project
No manual budget adjustments are needed. The moment a change order is approved, the financial tracking updates to match the new scope.
9. Track the Activity Log
Every action taken on a change order is recorded in the Activity log at the bottom of the change order record:
Who approved, declined, or modified the change order by username
When each action occurred with a timestamp
A complete history visible to all team members with access
This creates a transparent audit trail that protects both you and the client, and documents the sequence of events on every scope change.
10. Decline or Delete a Change Order
Declining:
When you decline a change order, Structur automatically logs your username, the timestamp, and the action in the Activity log. To view the decline history, open the change order and look at the Activity section at the bottom. Your name will appear as the person who declined it.
Best practice: Declining is preferable to deleting when a change order was legitimately considered but ultimately not approved, it preserves the record of why work wasn't authorized.
Deleting:
If a change order was created by mistake or is no longer relevant:
Go to the Change Orders listing page
Find the change order
Click the three-dot icon next to it
Select Delete and confirm
Deleted change orders can be recovered via Settings → Company → Restore Mode if needed.
Note: Only users with appropriate permissions can delete change orders. If the delete option isn't visible, check your role permissions under Settings → Permissions.
11. Managing Subcontract Change Orders
When a client-approved change order adds work that falls within a subcontractor's scope, you'll need to adjust their subcontract agreement accordingly. Structur supports subcontract change orders to handle this formally:
Navigate to the same Change Orders area within the project
Issue a subcontract change order to adjust the subcontractor's scope and pricing to reflect the client-approved change
This keeps your subcontract commitments aligned with the actual scope being executed
Managing both client-facing and subcontract change orders in Structur ensures your entire financial picture stays consistent, from what the client is paying to what you're committing to your subs.
Best Practices
Issue change orders before work proceeds - Never start changed work on a verbal agreement. Get the change order sent and approved first. If the work can't wait, at minimum have the scope and cost documented in Structur before the work begins.
Use descriptive titles - A change order log with clear titles is far easier to manage and reference than one full of generic names. Titles like "Added Scope: Deck Extension - North Side" communicate instantly.
Review profit and overhead on every change order - Don't accept the default percentages without reviewing them. Changed scope often carries different risk or cost structure than the original estimate.
Write detailed descriptions - The more clearly you explain the reason and scope of the change, the less room there is for dispute at closeout or during payment conversations.
Add full cost code breakdowns - Line-item detail in change orders builds trust with clients and creates a clear record of exactly what's included in the price.
Decline rather than delete when appropriate - If a change was considered and rejected, a declined change order preserves the audit trail. Delete only change orders that were created in error.
Keep subcontract change orders in sync with client change orders - When an approved client change order affects a sub's work, issue the subcontract change order promptly so the sub's agreement reflects the updated scope.
Common Questions
Q: Does approving a change order automatically update the project budget?
A: Yes. When a change order is approved, Structur automatically adds the new cost code items to the project budget, increasing the Revised Budget to include the approved scope. No manual budget update is needed.
Q: Can I set different profit and overhead percentages on a change order than my original estimate?
A: Yes. Each change order allows you to independently adjust profit and overhead percentages. The defaults match your original estimate, but you can modify them to reflect the specific risk, cost structure, or negotiated terms of each scope change.
Q: What happens to a change order that is declined?
A: When you decline a change order, Structur logs your username and a timestamp in the Activity log. The change order remains on record as declined, it doesn't affect the budget. This audit trail is useful for documenting what was considered and not approved during the project.
Q: Can I recover a deleted change order?
A: Yes. Deleted change orders can be restored via Settings → Company → Restore Mode. Use this if a change order was deleted by mistake.
Q: Who can delete a change order?
A: Only users with the appropriate role permissions can delete change orders. If the delete option isn't visible to you, check your permissions under Settings → Permissions or contact your company admin.
Q: Can I see the full history of actions taken on a change order?
A: Yes. Every action, approvals, declines, modifications, is recorded in the Activity log at the bottom of the change order, with the username and timestamp of the person who took the action.
Q: How do I handle a scope change that also affects a subcontractor's agreement?
A: Structur supports subcontract change orders. Once the client change order is approved, navigate to the relevant subcontract and issue a subcontract change order to formally update the sub's scope and pricing in line with the approved client change.
Common Mistakes to Avoid
❌ Don't | ✅ Do |
Start changed work without an approved change order | Issue and get approval on the change order before work begins - or at minimum before the project closes |
Use generic titles like "Change Order 3" | Write descriptive titles that identify the scope change at a glance |
Accept default profit and overhead without reviewing | Check and adjust percentages on every change order to protect your margin on new scope |
Leave the description blank | Write a full explanation of the reason for the change and the scope of work involved |
Delete a legitimately declined change order | Use Decline instead of Delete to preserve the audit trail for rejected scope |
Forget to update the subcontract when a client change order affects a sub | Issue a subcontract change order promptly to keep your sub agreements aligned with actual scope |