I'm sure you know what a change order is, but since this article is in the beginning woodworking business section, I'll start from scratch. A change order is basically when a client who has an existing contract or agreement with you concerning the requirements and pricing of the contract ask for a change in the requirements. Usually this means that something unforseen came up in the course of the contract and extra work needs to be done.

Change orders are most usually associated with large companies that work on contracts that are worth millions of dollars. Now that I have made that statement, you might ask how do change orders pertain to a small company that is just starting out?

If you have already come to an agreement with a customer about your service and how much it will cost, what do you do if the customer asks for something to be changed while you are halfway thruogh the project? Whether it is verbal or written down, you will be agreeing to a change order.

It is very important that any changes that come up through the course of a project be written down and signed. I am assuming that the original contract was written and signed as well. This applies to everything, from kitchen contracts to building furniture pieces. As a business you must protect yourself, and a signed contract as well as any change orders made afterwards must always be signed by the customer. Otherwise you are leaving yourself open to never collecting your money.

This is especially true when you are working as a subcontractor to another company. When dealing with a general contractor (GC) who is subcontractiing out work to you, always always always get things written down and signed before you start work on any change from the original contract.

As an example, say you are making some cabinet boxes for a new kitchen. You should have a contract with the client detailing certain aspects such as the number of boxes, door models, hardware, and installation time. All of a sudden you are halfway through the project and the client wants to change the type of handles on the doors and they cost more than the original choice. You've already ordered the hardware, and now you will have to cancel that order and reorder a new set.

At this point you will be making a change order, not neccessarily another document as it is not very complicated, perhaps just adding a few lines on to the original contract that the hardware model changed, any additional price that the client will have to pay, and any delay in installation due to the re-ordering of the material. Make sure you initial the change and get the client to sign it as well.

That's a little primer on change orders. It seems very simple, but when you are on the job site and talking with the client often times in practice these verbal change orders don't get written down. Don't worry about what the client thinks, you are acting as a professional when you get the client to sign any change.

So to reiterate, because I have seen many people starting out not using good business practices, any change to the original contract should be written down and signed by the client.