Change Orders on a Subcontractor Pay Application
An approved change order changes the contract sum, so it has to show up both on the continuation sheet and in the application summary. Don't edit the original schedule-of-values lines to absorb it — those lines should still add up to the original contract (line 1).
Where it appears
- Continuation sheet: each approved change order is its own line, with its own scheduled value in column C, billed in D/E/F like any other line. A deduct has a negative scheduled value.
- Line 2, net change by change orders: the total of those change-order lines (additions minus deducts).
- Line 3, contract sum to date: line 1 + line 2. It must equal the total of column C. If a change order is in the summary but missing from the sheet, or the other way around, the application won't tie out.
Worked example (the sample)
The fictional sample has two change-order lines:
| CO-01 — Added soffits at lobby | $7,400.00 | this period $3,700.00 |
| CO-02 — Deleted wall type B | -$2,300.00 | this period $0.00 |
| Line 2, net change by change orders | $5,100.00 | |
|---|---|---|
| Line 1, original contract sum | $266,000.00 | |
| Line 3, contract sum to date | $271,100.00 | |
CO-02 is a deduct (deleted work), so it reduces the contract. CO-01 is an addition, billed at half this period. The original contract lines are left alone.
How Retaintally spots a change-order line
It treats a line as a change order when the type column is co (or “change order”), or when the item starts with a change-order code and a number — for example CO-01, PCO-2 or COR 3. Deducts should be marked that way too: a negative scheduled value on a base-contract line is flagged, because it usually belongs on a change-order line.
Flags to watch
- Billing a $0 scheduled value — often an unapproved change order slipped onto the sheet. Most contracts only allow billing after the change is approved; keep pending ones off the pay app until they are signed.
- A line billed over 100% — extra work on an existing line is usually a change order, not an over-billing of the original value.
This is general information, not legal or contract advice. Load the sample to see both change orders in the summary, or start from the template (it has a type column for co lines).
Last reviewed 2026-11-04. General information, not legal or accounting advice.