Change Orders

Executed Change Orders — How to Include Them in Your Pay App

Once a CO is executed, you're entitled to bill for it. Here's how executed COs work and how to include them correctly in your pay application.

4 min read

An executed Change Order is a fully approved and signed change order — the GC has issued it, it's been signed (digitally or physically), and it's legally binding. At this point the additional scope and dollar amount are part of your contract. You're entitled to bill for it.

When can you bill an executed CO?

You can include an executed CO in your next pay application after it's been executed. You do not need to wait until the work is complete if the CO is structured as a lump sum — you can bill for the portion completed. For T&M COs, you bill based on actual hours and materials documented.

How to include a CO in your pay app

In MurphPay, when you create a new pay application, any executed COs that haven't been billed yet will appear as a selection. Check the ones you want to include in this billing cycle. The CO amounts add to your billing total. Each CO can only be billed once — once you include it in a pay app it's marked as billed and won't appear again.

Revised contract value

Each executed CO increases your contract value. Your revised contract value is your original contract amount plus all executed COs. This is the number your percentage complete should be calculated against — not just your original contract. Make sure your GC and their accounting system reflect the revised contract value.

Don't double-bill

Never include the same CO amount in more than one pay application. If you billed CO #1 in your June pay app, don't include it again in July. Keep a log of which COs have been billed and in which pay app.

What if a CO is executed but work isn't done yet?

For lump sum COs, you can bill the portion of work complete — just like your base contract. For T&M COs, bill only what you've documented. For stored materials related to a CO, follow the same stored materials rules as your base contract.

This is general educational information, not legal advice. Billing procedures for change orders vary by contract. Review your subcontract for specific requirements.

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