What is Change Order?
A formal document approving additional work or scope changes, including adjusted compensation and timeline.
Definition
A change order is a formal written agreement between a freelancer and client that modifies the scope, timeline, or compensation of an existing project after the original Statement of Work (SOW) or contract has been signed. It is an amendment to the original agreement — not a replacement. Change orders ensure that any additional work requested by the client is authorized, priced, and agreed upon in writing before the freelancer performs the additional work.
When to Issue a Change Order
A freelancer should issue a change order whenever the client requests: additional work beyond the original scope; modifications to existing deliverables that require significant rework; new deliverables not covered by the original SOW; an extension of the project timeline; or additional resources (such as subcontractors, stock assets, or licensing fees) beyond the original agreement. The key rule: if it was not in the original scope, it needs a change order.
Scope Creep and Change Orders
Scope creep — the gradual, uncompensated expansion of project requirements — is one of the most common causes of freelance burnout and financial loss. Clients often do not realize that additional requests constitute additional cost. The change order process addresses this by giving the client a clear, written picture of what the new request will cost before the freelancer commits to doing it. The client then makes an informed decision about whether to proceed.
Change Order Process
The typical change order workflow is: client makes an additional request; freelancer assesses the additional work required and prepares a change order document; change order is sent to the client with description of changes, additional fees, and timeline impact; client reviews and signs the change order; freelancer proceeds with the additional work. Never begin additional work without a signed change order — verbal agreements are difficult to enforce.
Pricing Change Orders
Change order pricing should be calculated using the same rates and methodology as the original project — whether hourly rates or fixed fees. For hourly work, document the estimated additional hours. For fixed-price projects, quote a fixed additional fee for the added scope. Always build in a small buffer for unforeseen complications. Change orders for small additions can be informal; anything significant should follow the same formal format as the original SOW.