Quick answer
An agreed modification to an existing project contract, documenting the changed work and any price or schedule adjustment under the applicable authorization process.
Answer: A change order documents an agreed modification to an existing project contract, including the changed work and any price or schedule adjustment. In solar projects, it may address discovered site conditions, customer requests, equipment substitutions or revised requirements. Required authorization depends on the contract and applicable law. A request for a change is not automatically an approved change order or permission to perform additional work.
A contract change needs a clear baseline
Start with the signed contract, its included drawings, equipment schedule, exclusions and stated assumptions. The change order identifies what will differ from that baseline and how the parties will handle it. It can add, remove or substitute work; it does not always increase the price.
AIA’s change-order documents illustrate agreement on changed work, price and time, with different forms for owner-contractor and contractor-subcontractor relationships. They are contractual tools, not one universal rule for every solar project. AIA G701 change order and AIA G701S contractor-subcontractor summary.
Common solar change triggers
| Trigger | What to document | What else may need review |
|---|---|---|
| Unexpected roof or electrical condition | Photos, inspection findings and difference from the assumed baseline | Structural or electrical scope and safe work plan |
| Customer-requested battery, EV circuit or layout change | The requested equipment and revised scope | Equipment compatibility, load assumptions and permits |
| Equipment substitution | Original and proposed model, quantities, specifications and credits | Layout, strings, mounting, warranties and interconnection |
| Authority or utility requirement | The dated requirement and affected design revision | Required engineering, permit or utility resubmission |
These are examples, not measured industry frequencies. Responsibility for the cost depends on the contract, cause and applicable rules; an inspector’s correction does not automatically mean the customer owes an additional charge.
Request, approval and directive are different
A change-order request proposes a modification for review. Keep its status explicit: submitted, under review, approved, rejected or withdrawn. Approval should follow the contractual authority and documentation requirements.
AIA distinguishes an agreed change order from a construction change directive used when agreement has not yet been reached. Whether a directive or emergency process is available in a particular project depends on that contract; do not assume a standard form authorizes extra work in every installation. AIA general-contractor contracts guide.
Jurisdiction example: California CSLB’s home-improvement guidance states that changes to contract price or scope require a written change order signed by the customer and contractor before the change. This is California guidance for that contract category, not a worldwide signature rule. Verify the applicable local requirements, contract and authorized signatories. CSLB home-improvement contracts.
Do not assume a verbal instruction resolves scope or payment. Document the instruction and follow the applicable authorization process. An immediate safety issue needs the appropriate safe-work response rather than waiting for a commercial discussion while exposing people to danger.
A useful change-order record
Include:
- Project, original contract reference, change identifier and document revision.
- Reason, supporting evidence and the exact added, removed or substituted work.
- Revised equipment and drawing references, including any unresolved design conditions.
- Itemized additions and credits; stated treatment of fees, taxes, overhead and profit.
- Schedule effect, affected milestones, dependencies and any estimated dates still awaiting confirmation.
- Required approvals, approval status, signatories and date.
- Permit, engineering, utility, procurement and field-document actions needed after authorization.
Keep the agreed document with the contract and affected drawings. Updating a quotation alone does not prove that all necessary approvals or project records have been updated.
Pricing example: markup is not margin
Hypothetical cost build-up: equipment $350, additional labor 2 × $85 = $170, permit-related fee $75 and administrative cost $200 total $795. These are assumed inputs, not typical market prices or a claim that any specific charge is recoverable.
A 20% markup on $795 produces $954: $795 × 1.20. The resulting gross margin is $159 ÷ $954 = 16.67%. A 20% gross margin on the selling price instead requires $795 ÷ 0.80 = $993.75, if $795 includes the relevant cost base. State which pricing convention the contract allows and avoid adding the same overhead twice.
A schedule impact should also be explained rather than assigned a generic delay. Equipment availability, engineering review, resubmission and crew sequencing can affect different milestones. No fixed number of weeks fits all changes.
Reduce avoidable changes without promising elimination
Designers should record assumptions and arrange appropriate site, structural and electrical verification. Installers should document discovered discrepancies and release only the authorized scope. Sales teams should explain allowances, exclusions and the change process before signing, then avoid presenting unverified assumptions as established site facts.
Track root causes using your actual project records. Imagery and design software can support planning but cannot guarantee detection of roof decay, hidden wiring or future authority decisions. For related commercial scope, see contractor terms, budgetary quotes and EPC responsibilities. To evaluate available SurgePV documentation workflows, request a demo with the required revision and handoff process.
Frequently asked questions
Is a change-order request already approved?
No. It is a proposed modification until the relevant approval process is completed.
Can a change order reduce the contract price?
Yes. Removed work or agreed substitutions may create credits, depending on the contract.
Must every solar change order use the same signatures?
No. Verify the contract, authorized roles and applicable jurisdiction; California home-improvement requirements are one specific example.
Does an equipment swap affect only procurement?
It can also affect layout, electrical design, mounting, warranties, permits and utility documentation. Review the actual differences.
Related Glossary Terms
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