Scope creep. You’ve seen it. You’ve lived it. It starts small — a few extra outlets, a different tile, a “quick” add-on. You want to keep the client happy, so you say yes and keep moving. But without a solid change order process, your profits vanish job by job.

Let me be clear: change orders aren’t the enemy. They’re a natural part of construction. The real danger is in not documenting them, not pricing them correctly, and worst of all — not billing for them at all.

Here’s what happens: your labor hours balloon, your materials run over, and your timeline stretches… but your invoice doesn’t change. You end up doing more work for the same price — which means your profit margin takes a hit.

A kitchen remodel contractor I worked with had beautiful projects — but was consistently under-profitable. When we reviewed his last 10 jobs, we found that every one of them included unbilled scope changes. Tile upgrades. Custom cabinet tweaks. Lighting changes. He said yes to everything and tracked nothing.

We created a simple digital change order form (fillable from a phone), trained his project manager to stop work until it was signed, and added a 35% margin to every change. Within 3 months, he collected $42,000 in previously missed revenue — just from change orders. His margins jumped overnight, and he no longer resented his clients mid-project.

Change orders aren’t a headache — they’re an opportunity. But only if you manage them right.

Ready to plug the leak?

Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”.  Go to www.7MinuteConversationBook.com

Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com