Echelon Field Note

Unpaid Change Orders: What to Review Before Writing Them Off

An unpaid change order is not one problem. The first job is to determine exactly where the item stopped moving.

Start with status, not assumptions

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

Those are different failure points. Treating all of them as “unpaid change orders” hides the question that matters: where did the commercial process stop?

Reconcile the records

A useful review compares the change log against the underlying project and financial record. That can include directives, T&M tickets, correspondence, proposals, approval records, pay applications, invoices, job-cost information, and the final account.

Separate three categories

Commercially open

The item has identifiable value and supporting records, but commercial disposition, billing, or payment remains unresolved.

Documentation gap

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

Closed

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

Contract rights, notice requirements, payment remedies, and limitation periods are legal questions. They should be evaluated by qualified counsel when applicable.