By Tammy Hoang, QuickBooks ProAdvisor | Construction Cost Accounting | (949) 889-3283 Disclaimer: Construction Cost Accounting is a bookkeeping firm, not a CPA firm or law firm. The information in this post reflects general bookkeeping practices used in the construction industry and is intended for informational purposes only. It does not constitute accounting, tax, or legal advice. Readers should consult a licensed CPA or attorney for guidance specific to their situation. Th

You did the work. You have the receipts. But the owner says they never approved it and now you're $40,000 short on a job you already finished. This isn't bad luck. It's a tracking problem. And it's costing U.S. contractors billions every year. Change orders represent 10–20% of total project value on the average commercial job yet most contractors collect only 60–70% of what they're owed. The work gets done. The money doesn't follow. Not because owners are always dishonest, bu

Most contractors believe "change orders are where we make our money." The logic seems sound you're already mobilized on site with crews ready to work, and you get to mark up the additional scope. What could go wrong? Everything, it turns out. The line item price you charge for a change order rarely captures the true cost of executing that change. Hidden beneath are disruption costs, coordination overhead, schedule impacts, productivity losses, and a dozen other expenses that