Understanding Change Orders

As the job progresses, you and your customer might agree to revise the billing information for the contract. To maintain the integrity of the base contract, you create an addendum for each revision that you make to the base contract. Each addendum is referred to as a change order.

Change orders include any additional work that your customer, the owner of the job, requests that is not included in the base contract. A change order includes one or more billing lines that define the new billing terms for the additional work.

To help track each addendum to a base contract, the system always assigns the number 000 to the base contract change order. You can assign each additional change order a number, such as 001, 002, and so on.