How is a construction change order priced in Canada?
A change order is priced as the direct cost of the added work (labor, material, equipment) plus a contractually agreed markup for overhead and profit, plus bond and applicable HST, less the value of any deleted work. Most standard-form contracts (e.g. CCDC) set out the pricing method and markup limits.
Do I need written approval before doing extra work?
Yes. Performing changed work without a signed change order or change directive is risky — the owner may dispute payment. Standard contracts require written authorization, and doing extra work on a verbal instruction can leave you fighting to prove entitlement later.
What markup can I charge on a change order?
Markup is whatever the contract allows. CCDC and many owner contracts cap overhead-and-profit markup (commonly 10–20% on own-forces work and a lower percentage, often 5%, on subcontractor work). If the contract is silent, a reasonable industry markup applies.
What is the difference between a change order and a change directive?
A change order is an agreed adjustment to price and time, signed by both parties. A change directive instructs the contractor to proceed with a change before price is agreed, with valuation determined later under the contract's pricing rules. Both should be documented in writing.