Foundation

Change Orders

Change orders are one of the most important documents in residential construction. When the homeowner upgrades their countertops, the inspector requires a structural fix, or you hit unexpected rock during excavation, a change order (CO) formally captures what changed, what it costs, and who approved it.

Baulit gives you a complete change order system that ties directly into your project budget, so approved changes automatically update your financial picture without manual data entry.

What Is a Change Order?

A change order is a written agreement that modifies the original scope, cost, or timeline of a construction project. In Baulit, every CO includes a sequential number (CO-001, CO-002, etc.), a title, a reason category, a description, original and new amounts, a linked task, and optional file attachments.

COs serve two purposes: they protect you legally by documenting agreed-upon changes, and they keep your budget accurate by flowing approved costs into the right line items automatically.

Creating a Change Order

Open the Changes tab in your project view. This tab lists all existing change orders and provides the creation button.
Click "New Change Order." The CO form opens with the next sequential number already assigned.
Enter a title. Keep it short and descriptive — something like "Upgrade to quartz countertops" or "Add bathroom exhaust fan per code."
Select a reason from the dropdown: Scope Change, Unforeseen Conditions, Client Request, Design Change, Regulatory / Code, or Other.
Write the description. Explain what is changing and why. This text appears on the printed CO document, so be thorough.
Enter the original amount and new amount. Baulit calculates the delta automatically (new minus original). A positive delta means the project costs more; negative means a credit.
Link a task. Select the task in your schedule that this change affects. This link is what drives automatic budget integration when the CO is approved.
Attach files (optional). Add up to 5 supporting documents: subcontractor quotes, material specs, site photos, or homeowner approval emails.
Save as Draft to continue editing later, or Submit immediately to send it for review.
Tip: Always link your CO to a specific task. Without a linked task, the budget integration cannot work and you will need to update costs manually.

The 4-Status Workflow

Every change order moves through four stages. Each stage controls what can be edited and what happens to your budget.

Draft Submit Submitted Approve Reject Approved → Budget updated Rejected → No budget change

Draft

Every new CO starts as a Draft. All fields are fully editable: title, description, amounts, linked task, and attachments. You can also delete a Draft entirely if the change is no longer needed. Drafts are visible only to Admins and Managers.

Submitted

When you click Submit, the CO is locked for editing and enters the review queue. This represents a formal request — you are documenting that a scope change needs to happen and presenting its financial impact. Only an Admin or Manager can move it forward from here.

Approved

When an Admin approves a CO, three things happen automatically. The CO status changes to Approved and becomes permanently locked. A cost line item is created on the linked task reflecting the delta. Your project budget totals update immediately to include the approved change.

Rejected

If a CO is not approved, the Admin rejects it with a written reason. The CO is locked with a Rejected status, no budget changes occur, and the rejection note is permanently attached for future reference.

Important: Once a CO is Approved or Rejected, it cannot be edited or reverted. If circumstances change after approval, create a new change order to document the additional modification.

Tracking Original vs. New Amounts

Every CO records two dollar figures: the original amount (what was budgeted before the change) and the new amount (the revised cost). Baulit calculates the delta automatically.

Field Example Purpose
Original Amount $12,000 What the work was originally budgeted at
New Amount $15,500 The revised cost after the scope change
Delta +$3,500 Automatically calculated (new minus original)

A positive delta means an increase to the project budget. A negative delta represents a credit — for example, when a homeowner downgrades a finish selection. The delta is what flows into the budget when the CO is approved.

Attaching Files

Each change order supports up to 5 file attachments. Common attachments include subcontractor quotes, revised drawings, material specifications, site photos showing unforeseen conditions, and homeowner email approvals.

Files are stored in your project's secure storage and are accessible from the CO detail view. Attachments are included in the printed CO document as a reference list, though the files themselves are not embedded in the print output.

Print View

Every change order has a Print button that generates a professional document you can hand to a homeowner for signature or file in your project records.

The printed CO includes your company letterhead (pulled from your Company Profile), the project name and address, the CO number and date, the full description, original and new amounts with the calculated delta, and signature lines for both parties.

Use your browser's print dialog to print a hard copy or save as PDF. Many builders print COs at the job site and get the homeowner's signature before work proceeds.

Budget Integration

The real power of Baulit's change order system is automatic budget integration. When a CO is approved, the delta creates a cost line item on the linked task. The task's estimated cost updates, the project budget summary on the Budget tab recalculates, and the EAC (Estimate at Completion) reflects the change.

This means your budget stays current without manual adjustments. Every approved change is documented, traceable, and reflected in your financial reporting automatically. For more on how costs work in Baulit, see Budget & Cost Tracking.

Cross-project visibility: The Reports Hub includes budget reports that aggregate change order impacts across all your projects, so you can see total CO exposure at a glance.

AI CO Narrative

Writing a professional justification for a change order takes time. Baulit's AI can draft one for you based on the CO title, reason, and amounts.

Open a Draft change order that has a title, reason, and amounts filled in.
Click "Generate Justification." The button appears below the description field.
Review the AI draft. The narrative explains the change in clear, professional language suitable for homeowner communication.
Edit and save. Adjust the text to match your specific situation, then save the CO.
Requires API key: AI features use your own Anthropic API key and are available on Pro and Enterprise plans. See BYOK Setup to get started.

Change Order Numbering

Baulit assigns CO numbers automatically and sequentially within each project: CO-001, CO-002, CO-003. Numbers are never reused, even if a Draft is deleted. This ensures every CO has a unique, permanent reference number for correspondence, invoices, and contracts.

Viewing CO History

The Changes tab shows all COs for the project. Use the status filters at the top to narrow the list to Draft, Submitted, Approved, or Rejected. Click any CO to open the full detail view with description, amounts, attachments, and approval or rejection notes.

For industry best practices on managing change orders, see the Change Order Practices guide in the Builder's Library.