Field note

Unpaid Change Orders: What to Review Before Writing Them Off

An unpaid change order is not one problem. Find where the item stopped.

Write down the status first

Before you decide what an unpaid change order means, write its actual status. Was the work directed? Performed? Priced? Submitted? Revised? Approved? Added to contract value? Billed? Paid?

Those are different stops. Calling all of them unpaid change orders hides the question that matters: where did the process stop?

Reconcile the records

Compare the change-order log to the project and financial record. That can include directives, T&M tickets, correspondence, proposals, approval records, pay applications, invoices, job-cost, and the final account.

Sort the item

Commercially open

The item has an identifiable value and supporting records, but disposition, billing, or payment is still unresolved.

Documentation gap

The project suggests an unresolved item, but the support on hand is incomplete or inconsistent.

Closed

The item reconciles to the final commercial record. No further Echelon review is indicated.

Contract rights, notice requirements, payment remedies, and limitation periods are legal questions. When they apply, they belong with counsel.

Start with one project. Send the job, the approximate completion date, what looks unresolved, and where the records are.