How to use the scope change cost calculator
- List each change as Added work or a Credit, with a description, a quantity and the price each.
- Set a markup on added work if you add one. It applies to added work only, not to credits.
- In More options, enter the original contract price to see the new total, and the days added to the schedule.
- Read the headline for the net change. A net reduction shows in parentheses.
Formula
line amount = quantity x price each, rounded to the cent
markup = added work x markup % / 100
net change = added work + markup - credits; new price = contract + net change
Credits are subtracted after the markup is applied to the added work. The change as a share of the original is net change divided by the original contract price.
Added design hours and a credit
Six added hours at $90 are $540. A 10% markup adds $54. A dropped item is credited $45, so the net change is $540 + $54 - $45 = $549.00. A $10,000 contract becomes $10,549, a change of 5.49%, and 3 added days push the schedule out by 3 days.
With no markup and no credit, the net change is just $540. Removing work shows as a reduction: a credit of 2 x $100 on its own gives a net change of ($200.00). Each line rounds to the cent first, so 2.5 x $9.99 = $24.975 becomes $24.98.
What a change order is for
When the scope of a project changes after the price is agreed, a change order records what changes, what it costs and what happens to the schedule, so both sides agree before the extra work starts. Listing each addition and credit as its own line shows exactly where the number comes from and makes the document easy to check.
Pricing added work at the same rates as the original quote is the simplest approach. If your contract allows a markup on changes, enter it here. This page does not read your contract, so the terms that apply are yours to set and agree.
Keeping the numbers connected
A change order is easier to explain when you can point back to the original price and to progress so far. See the Project Price Quote Calculator, the Progress Billing Calculator and the Milestone Payment Schedule Calculator for those.
Assumptions and limits
- Quantities must be above zero. Price each may be zero, for work you are adding at no charge.
- The markup applies to added work only and may have up to three decimals.
- Tax and contract terms are not included. Get every change agreed in writing.
- Money is rounded to the cent, half up. Negative amounts are shown in parentheses.
Frequently asked questions
How do you price a change order?
List the added work as quantity times price, add any markup your contract allows, and subtract credits for removed work. Six added hours at $90 is $540, so with no markup or credits the net change is $540.
How does a credit work in a change order?
A credit reduces the price for work that is removed from the scope. It is subtracted from the added work, so a net reduction shows in parentheses. Credits are not marked up in this calculation.
Should I add a markup to a change order?
Only if your contract or agreement allows it. The field starts at 0. Some agreements price changes at the original rates, and others add a percent to cover coordination, so check your terms.
How do I show the effect on the schedule?
Enter the days added in More options. The page reports it next to the cost, so the change order states both the money and the time in one place.