Profit Protection
Change Order Control System
Prevent scope creep and protect $50K+ in profit on every project.
Scope Creep Is Killing Your Profit
How to control change orders and protect yourself from scope expansion
The Problem
How Scope Creep Costs Contractors $50K+ Per Project
Scope creep is silent profit killer. Customer doesn't ask for major changes—they ask for small ones. "Can we add one outlet?" "Let's upgrade that fixture." "Could we paint one more wall?" Each request is small. Together, they can be 10-20% of original project cost.
Real Example: $100K Kitchen Remodel
Original Scope: $100K, 8-week timeline
Changes That Crept In:
- • "Can we upgrade counters to granite?" → +$4K
- • "Add two pendant lights over island?" → +$1.5K
- • "Could we do a backsplash?" → +$3K
- • "Let's paint the dining room too?" → +$2K
- • "Can you install that microwave we bought?" → +$800
- • "Actually, let's do this cabinet differently..." → +$2.5K
Total Creep: $13.8K (14% cost increase)
Schedule Creep: +3 weeks
Profit Impact: If you bid 20% margin on $100K = $20K profit. Changes cost $13.8K + 3 weeks crew ($7K overhead) = $20.8K cost. You break even or lose money.
This happens on every project when you don't have a change order system. The solution is simple: every change = change order. Get it in writing. Get customer signature. Require payment before work starts.
Clear Scope
How to Define Scope So Creep Doesn't Happen
The best change order system starts before any work—with a crystal clear original scope. Vague scope = arguments later.
Vague Scope (Leads to Disputes):
"We'll paint the kitchen and dining room. Materials and labor included."
→ What brand of paint? Primer included? Trim? Ceilings? Cabinets? Door frames? How many coats? What about drywall repair? Leads to disputes.
Clear Scope (No Disputes):
"Paint kitchen and dining room: 2 coats Benjamin Moore Aura, walls and ceilings, trim painted white semi-gloss. NOT included: cabinets, drywall repair (extra)."
→ Exactly what you're doing. Customer knows. Anything outside is a change order.
Scope Definition Checklist:
- What specific areas/rooms are included? (List each)
- What materials are specified? (Brand, color, grade)
- What's explicitly NOT included? (List exclusions)
- Include photos of existing conditions
- Specify quality standard expectations
- Include timeline/schedule
- Clarify responsibility for customer-provided materials
Protection
Profit Impact of Scope Creep Control
Change orders protect your margin. Here's the math:
Example: $100K Kitchen Project
Without change order system: 14% scope creep ($13.8K) + schedule delays = you break even or lose money
− Unpaid scope creep: $13.8K
− Schedule delays overhead: $5K
= Expected $20K profit → $1.2K actual
With change order system: Every change is documented, signed, and paid for. Your $20K margin stays intact.
Change Order & Scope Creep Questions
Answers to common questions about managing scope and changes
Ready to Protect Your Profit?
If it’s a fit, we’ll outline next steps. If it’s not, we’ll tell you directly.