OCO (Owner Change Order)

OCO (Owner Change Order) is a formal document issued by the owner requesting changes to the scope of work, affecting time or cost.

Owner change orders happen when the client decides they want something different mid-project: a bigger window, upgraded tile, or an added room. Documenting each OCO with clear cost and schedule impacts protects the contractor from eating the difference.

How an OCO Works

1. Owner requests a change — verbally or in writing.
2. Contractor prices the change — including labor, materials, equipment, overhead, and any schedule impact.
3. Owner approves the cost and time adjustment — both parties sign the change order.
4. Work proceeds under the revised scope.

Skipping any step, especially written approval before starting work, is how contractors end up doing free work.

Common OCO Triggers

• Design changes: The owner sees the space framed out and wants to move a wall or add a window.
• Material upgrades: Switching from laminate to quartz countertops, or standard fixtures to high-end.
• Scope additions: Adding a bathroom, extending a deck, or finishing a basement that wasn’t in the original contract.
• Code-driven changes: An inspection reveals a requirement that changes the original design.

Practical Example

A homeowner on a kitchen remodel decides mid-project to add an island with a sink. The contractor prices the change at $6,800 (plumbing rough-in, electrical for a disposal, countertop extension, and cabinet work) plus two extra days on the schedule. Both parties sign the OCO before any island work begins.

Projul’s estimating and change order tools let you create, price, and get approval on change orders from your phone, so nothing stalls the job. For a deeper dive, check out our construction change order guide.