Change Order Documentation · Scope Changes · Approval Process · Construction Collections
Change Order Documentation · Scope Changes · GC Approval · Construction AR Protection
Change Order
Documentation.
Most change order losses aren't the result of GCs refusing to pay — they're the result of work starting before documentation exists. A verbal direction from a GC superintendent, a quick email from a project manager, a sketch on a napkin — none of these are change orders. Here's the exact documentation process that protects every dollar of extra scope.
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SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
Work Starts Before Documentation Exists
The most common change order failure: field crew responds to a GC direction, work gets done, and the change order paperwork starts after the fact. By then, the GC may not remember the direction, the superintendent who gave it may have left the project, and the documentation required to support a claim has to be reconstructed from memory. Reconstructed documentation loses disputes.
02
You're Using Email as Your Change Order System
Email threads are not change orders. They're evidence that conversations happened — but they don't include the pricing, the scope definition, or the formal approval that makes a change order billable. GCs regularly use 'we'll sort it out' email chains to delay formal approval while the work gets done, then dispute the pricing after the fact.
03
You Don't Know What the Change Order Is Worth Until It's Done
Starting change order work without pricing locks you into a T&M rate or a dispute about value. The time to price a change order is before the work starts — when you have leverage. After the work is done, you're negotiating from weakness.
How SPM Fixes It
The Change Order Documentation Standard
Every scope change, regardless of size, gets a written Potential Change Order (PCO) document before work starts — description of additional scope, estimated cost, schedule impact, and basis for the change (owner direction, design change, unforeseen condition). The PCO gets submitted to the GC for approval. If the GC directs work to proceed before PCO approval, a written notice is issued: 'Proceeding with [scope] per verbal direction from [name] on [date] pending formal change order approval. Estimated cost: $X.'
When the GC Won't Sign
If a GC refuses to sign a change order for work they directed, escalate in writing immediately — not after the work is complete. Document the direction, the refusal, and your intent to proceed under protest. This creates the paper trail for lien enforcement and dispute resolution. A dispute about a change order with full documentation is winnable. A dispute without documentation is not.
Change Order Tracking in Job Costing
SPM tracks every open PCO and approved change order in ControlQore job costing — dollar value, approval status, billing status, and collections status. When an approved change order goes unpaid past 30 days, it enters the same AR management process as any other invoice — 30-day follow-up, 45-day escalation, National Lien Services and Megan Shapiro, Esq. at day 60 if unresolved.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
What language should I use when proceeding with work under protest?
A standard proceeding-under-protest notice reads: "This is written notice that [Company] is proceeding with [description of additional work] as directed by [Name/Title] on [Date]. This work is outside the scope of our current contract. We reserve the right to seek compensation for all costs associated with this additional work. A formal change order request will be submitted for approval. Please confirm your direction to proceed." Send by email with read receipt requested and follow up with a hard copy if the amount is material.
How should change orders be priced?
Change orders should be priced from actual cost — labor hours at true burden rate, materials at invoice cost plus markup, equipment at internal rate, subcontractors at invoice plus markup — plus overhead allocation and profit margin. The same margin you apply to base contract work should apply to change orders. Change orders priced at cost with no margin subsidize the additional scope out of your base contract profit.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.