Change Order vs. Change Proposal Estimate (CPE) — What's the Difference?
On owner-approval projects, your COR may become a CPE before it becomes a CO. Here's how the approval chain works.
On most projects, a Change Order Request (COR) goes directly to the GC for approval and then becomes an executed Change Order (CO). But on projects that require owner approval for change orders, there's an additional step — the Change Proposal Estimate (CPE).
The standard COR → CO flow
On most private projects: Sub submits COR → GC reviews and approves → GC issues CO → Sub includes CO amount in next pay application. This is the most common flow and the most straightforward.
The COR → CPE → CO flow
On projects with owner approval requirements: Sub submits COR → GC reviews and compiles CORs into a CPE → GC submits CPE to owner for approval → Owner approves → GC issues CO to sub. This flow takes longer because the owner has to approve the change before any money is committed.
What is a CPE?
A Change Proposal Estimate is a document the GC prepares and sends to the owner that summarizes proposed changes and their cost. It may include one or multiple CORs from various subcontractors bundled together. The CPE is the GC's formal request to the owner — the sub's COR is the source document behind it.
What this means for subs
If you're on an owner-approval project, your COR approval timeline is longer. The GC can't approve your COR on their own — they have to go to the owner. Plan accordingly. Don't start additional work until the full approval chain is complete unless specifically directed in writing by the GC.
Tracking the chain
In MurphPay, the Change Orders section on the GC side shows the full chain — COR numbers, CPE numbers, and CO numbers — so you can see exactly where each change request is in the approval process.
This is general educational information, not legal advice. Owner approval requirements vary by contract. Review your subcontract and prime contract for specific procedures.
More in Change Orders
For general educational purposes only. Not legal advice. Consult a California construction attorney for your situation.
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