# Customer Change Order Proposal Template

> Source: https://netray.co/tools/eto-customer-change-order-proposal-template
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Fill in project, scope, cost breakdown, schedule impact and validity to generate a clear change order proposal with an acceptance signature block, exportable to PDF or Word.

## Category

compliance-legal

## Industry

Engineer-to-Order Machinery

## Audience

- Project manager
- Contracts manager
- Estimator

## Tool

**Kind:** template

**Output:** document

**Fields:**

#### Your company

**Key:** company

**Type:** text

**Default:** Northline Automation Inc.

#### Customer

**Key:** customer

**Type:** text

**Default:** Harlan Packaging Co.

#### Project name

**Key:** project

**Type:** text

**Default:** Case Packer Line 3

#### Customer PO or contract number

**Key:** po

**Type:** text

**Default:** PO-448120

#### Change order number

**Key:** co_no

**Type:** text

**Default:** CO-004

#### Date issued

**Key:** date

**Type:** date

**Default:** 2026-10-20

#### Reason for change

**Key:** reason

**Type:** select

**Options:**

- Customer-directed scope change
- Specification clarification
- Differing site condition
- Regulatory or safety requirement
- Schedule acceleration requested
- Customer-supplied data changed

**Default:** Customer-directed scope change

#### Description of change

**Key:** description

**Type:** textarea

**Default:** Replace the specified 3-axis pick head with a 4-axis head to handle the new 12 oz carton, including revised mounting frame, PLC rack relocation and updated safety validation.

#### Engineering

**Key:** eng

**Type:** text

**Default:** 5,400

#### Fabrication and assembly labor

**Key:** shop

**Type:** text

**Default:** 9,620

#### Material and purchased parts

**Key:** mat

**Type:** text

**Default:** 14,200

#### Subcontract and freight

**Key:** subs

**Type:** text

**Default:** 2,100

#### Overhead and profit

**Key:** markup

**Type:** text

**Default:** 5,900

#### Total change order price

**Key:** total

**Type:** text

**Default:** 37,220

#### Schedule extension in days

**Key:** days

**Type:** text

**Default:** 9

#### Proposal valid for (days)

**Key:** valid

**Type:** text

**Default:** 30

#### Exclusions and assumptions

**Key:** exclusions

**Type:** textarea

**Default:** Price excludes customer-side electrical work and any changes to the carton design after issue of this proposal. Lead times for the 4-axis head are as quoted by the supplier on the issue date.

**Blocks:**

#### Change Order Proposal {{co_no}}

**Body:** From: {{company}}
To: {{customer}}
Project: {{project}}
Customer PO or contract: {{po}}
Date issued: {{date}}
Reason for change: {{reason}}

#### Description of change

**Body:** {{description}}

#### Price breakdown (USD)

**Table:**

**Columns:**

- Item
- Amount

**Rows:**

**0:** Engineering

**1:** {{eng}}

**0:** Fabrication and assembly labor

**1:** {{shop}}

**0:** Material and purchased parts

**1:** {{mat}}

**0:** Subcontract and freight

**1:** {{subs}}

**0:** Overhead and profit

**1:** {{markup}}

**0:** Total change order price

**1:** {{total}}

#### Schedule impact

**Body:** This change extends the contract delivery date by {{days}} calendar days from the date of written acceptance. Work on the changed scope will begin only after written acceptance of this proposal.

#### Exclusions and assumptions

**Body:** {{exclusions}}

#### Validity and payment

**Body:** This proposal is valid for {{valid}} days from the date issued. Payment terms follow the original contract unless stated otherwise here. Acceptance of this change order forms an amendment to {{po}}.

#### Acceptance

**Signatures:**

- Customer authorised signatory
- Date
- {{company}} project manager
- Date

**Notes:** This is a starting point for change proposals, not legal advice. The change clause in your contract governs notice periods, pricing method and who may authorise a change. Have your contracts or legal team review the final wording, especially for fixed-price work.

## Content

**Intro:** A change order proposal should leave the customer in no doubt about what changes, what it costs and what it does to the delivery date. This template gives project managers a clear, one-page structure that can be exported to PDF or Word and sent for signature.

**Sections:**

#### How to use the template

**Body:** Fill in the project details and reference the customer PO or contract so the document ties to the original agreement. Choose the reason for the change, because it affects who bears the cost. Describe the change in plain engineering terms, then enter the price breakdown by cost category. State the schedule impact in calendar days and list the exclusions and assumptions the price depends on. The preview updates as you type, and you can export to PDF or Word with a signature block.

**Bullets:**

- Quote the price breakdown to the dollar, not rounded
- Include exclusions that stop later scope creep
- Attach drawings or a redline when the change is physical

#### What a good proposal contains

**Body:** Good proposals have six elements: identification of the contract and change number, a clear scope description, a price broken down by category, a schedule effect, assumptions and exclusions, and a validity period with a signature block. The breakdown matters more than the total because the customer's reviewer will challenge individual lines. Showing time impact separately avoids the common dispute where a small price change hides a large delay.

#### Process notes

**Body:** Send the proposal as soon as the effect is understood and record it in your change log. Do not start the changed work before the written acceptance is in hand if your contract requires it. Keep the numbering sequential and link the document to the work order or project task in the ERP so actual cost can be compared to the quote when the job closes. If the customer partially accepts, issue a revised proposal rather than editing the original.

#### Common mistakes

**Body:** Frequent errors include describing the change vaguely, leaving out the schedule impact, forgetting to state the validity period, and not tying the proposal to the original contract number. Teams also let several small changes accumulate without telling the customer the combined effect on delivery.

**Bullets:**

- One change per proposal where possible
- Always state whether price includes freight and tax
- File the signed copy against the project in the ERP

**Cta:** Netray can draft these proposals directly from your ERP data, pulling BOM changes, labor rates and open commitments for human review. Ask how it would work with your system.

**Faq:**

#### Who should sign a change order?

**Answer:** The person with authority to amend the contract on the customer side, often a purchasing manager or project sponsor, and an authorised person on your side. Check your contract's notices and authority clause, because an engineer's email is often not enough.

#### Can I start work before the change order is signed?

**Answer:** It depends on the contract. Many require written authorization first, and starting early can weaken your right to payment. If you must proceed to protect the schedule, get a written notice to proceed with a not-to-exceed value.

#### Should the proposal show markup separately?

**Answer:** Showing overhead and profit as one line is common and transparent. Some contracts fix the markup percentage or require itemised labor rates, in which case follow the contract format. Hiding markup in labor rates tends to invite audit requests.

#### How long should the proposal stay valid?

**Answer:** Choose a period that matches your supplier quote validity and labor availability. Thirty days is common. For changes with volatile material, such as steel or electronics with long lead times, a shorter period is more prudent.

## Search terms

change order proposal template, change order form template, change order request letter, scope change proposal word, customer change order form, change order template manufacturing, contract change proposal, equipment change order pdf

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