Change Orders and Payment Delays: What to Fix
Prevent payment bottlenecks by documenting and billing change orders quickly.
Trade specific context: change order management
Change-order delays usually start when extra work is done before commercial approval. The safest path is to separate variation approval from field urgency wherever possible.
USA vs Australia terminology
Common USA wording: change order request, signed CO
Common Australia wording: variation request, approved variation
Using familiar local wording in quotes, invoices, and reminders reduces confusion and helps approvals move faster.
Recommended billing model
Model: variation event billing
- Agree on payment terms and approval steps before work starts.
- Invoice immediately when each billable stage is complete.
- Schedule reminders before the due date and on the due date automatically.
- Escalate overdue accounts on a clear, fixed schedule.
Common blocker and fix
Frequent blocker: unapproved extra work
Fix: Attach the right proof and references when you send the invoice, then confirm receipt with the approver the same day.
Example: A supervisor pauses non-critical scope additions until signed pricing is received, avoiding later dispute over entitlement.
Common questions for change order management
Why do change orders delay payment?
Work is completed before pricing and approval are documented.
How can contractors avoid variation disputes?
Get written approval before starting non contract work.
Should change orders be invoiced immediately?
Yes. Bill approved variations in the next claim cycle.
Metrics to review weekly
- Overdue value by aging bucket.
- Average days to payment by client type.
- Reminder response rate and promise to pay completion.
- Dispute volume and resolution lead time.
Note: Regulatory requirements differ by state and country. Use local legal and accounting advice for contract and statutory compliance.
Invoice Chase helps trade businesses send consistent reminders with less admin overhead.
