What belongs in a construction change order cost?
A change order cost usually starts with the work required by the scope change. That can include crew time, material purchases, rented equipment, subcontractor invoices, permits, deliveries, disposal, and other direct costs that exist because the job changed.
Labor, materials, equipment, and subcontractors
Labor and materials are often the easiest costs to see, but equipment, trade partners, hauling, special deliveries, and permit costs can matter just as much. A clear cost summary helps the customer understand why the price changed.
Overhead versus profit markup
Overhead helps cover business costs that support the job. Profit markup is the additional amount added after cost and overhead. This calculator uses markup. It does not tell you what markup you must use.
Previous approved change orders and schedule changes
If earlier change orders have already been approved, include them when explaining the adjusted contract total. If the work adds or removes days, document that separately so the customer sees both the price impact and the schedule impact.
Worked fictional example
| Labor | $800.00 |
|---|---|
| Materials | $450.00 |
| Equipment | $100.00 |
| Subcontractor | $0.00 |
| Other costs | $75.00 |
| Direct cost | $1,425.00 |
| 10% overhead | $142.50 |
| 15% profit markup on cost plus overhead | $235.13 |
| Fixed fees | $25.00 |
| Change order total | $1,827.63 |
This example is fictional and only shows the math pattern. Your contract, tax, and legal requirements may vary.