How to Manage Change Orders Without Losing Your Margins

Every custom home builder knows the feeling: the client wants to upgrade the countertops, add a fireplace, or move a wall. Change orders are a natural part of building a custom home — but without a system, they can erode your margins faster than you realize.

The Problem with Informal Change Orders

Many builders handle changes through text messages, verbal agreements, or scribbled notes. This leads to disputes at the end of the project when the final invoice doesn't match the client's expectations. The solution is a formal change order process that documents every change, gets written approval, and automatically updates the contract value.

A Better Approach

1. Document every change as a line item with a clear description and cost

2. Include markup — your time managing the change has value

3. Send for client e-signature before any work begins

4. Automatically update the contract total so there are no surprises

5. Keep a running log visible to both you and the homeowner

How Foundation Handles This

Foundation's change order workflow lets you create line-item changes, add markup, and send for client e-signature — all from your phone. The contract value updates automatically, and both you and the homeowner can see the full history of approved changes at any time. No more end-of-project disputes.