Are electronic signatures valid?

Yes. Electronic signatures are generally legally binding under the federal ESIGN Act (15 U.S.C. ch. 96, 2000) and state UETA laws where adopted, provided intent, consent, attribution, and reliable record retention are present; some narrow exceptions apply for specific document types.

When is a notary required?

A notary is required only when the contract or jurisdiction specifically mandates notarization, or when a self-proving affidavit is needed; for notarized change orders use a remote or in-person notary consistent with state notary law and retention of the notarial journal.

What makes a change order legally enforceable?

Clear identification of the original contract, a precise description of the change, mutually agreed financial and schedule terms, and execution by authorized signatories create an enforceable contract amendment under general contract law principles.

How do I correct an executed change order?

Prepare a new amendment or corrective change order describing the error and the corrected terms; obtain the same level of approvals as the original and retain both documents for audit and dispute resolution purposes.

How long should executed change orders be kept?

Retain change orders for the life of the contract plus standard retention periods applicable to the document type; follow IRS guidance for tax records (IRC §6501(a)) and HIPAA rules for health records (45 CFR §164.530(j)) where applicable.

Who can sign on behalf of a company?

Only persons with actual delegated authority may bind an entity. Verify delegation via corporate resolution or written authorization; avoid accepting signatures without documented signing authority to reduce dispute risk.

Electronic Signature
Templates
Finance
Financial Change Order

Financial Change Order

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FINANCIAL CHANGE ORDER

Identification

Change Order Number: Original Contract/PO Number:

Effective Date:

Parties

Requesting Party (Buyer / Owner)

Contractor / Vendor

Summary of Financial Adjustment

Original Contract Value: $ Total of Prior Change Orders: $

Type of Adjustment: Increase Decrease

This Change Order Amount (net): $ New Contract Value (calculated): $

Itemized Adjustment

Description	Quantity	Unit Rate	Amount



Subtotal Adjustment
Tax / Sales Tax
Other Charges
Total Adjustment

Schedule Impact

Change in Contract Time: calendar days

New Contract Completion Date:

Reason for Change

Payment and Accounting

Payment Method: Lump Sum Progress Payment Other

Payment Terms (if different than original contract): Net days

Accounting / Budget Information

Terms and Certifications

This Financial Change Order amends the original contract identified above. Upon execution by authorized representatives of both parties, the contract sum and/or contract time will be adjusted as set forth herein. Except as expressly modified by this Change Order, all provisions, obligations, warranties and remedies of the original contract remain in full force and effect. This Change Order does not authorize work beyond the scope described herein unless expressly stated.

The Requesting Party certifies that funds are available and allocated for this Change Order. The Contractor certifies that the amounts and schedule impacts stated are reasonable and represent the change in cost and time to complete the work. Payments due under this Change Order shall be subject to the original contract's invoice submission, release of liens, and final acceptance conditions.

Disputes arising from this Change Order shall be resolved pursuant to the dispute resolution procedures set forth in the underlying contract. Acceptance of this Change Order is acknowledgement that the signatory has authority to bind the party and that the information contained herein is true and correct.

Additional Terms (optional)

Authorizations

The undersigned authorized representatives hereby approve and authorize the changes described in this Financial Change Order and certify compliance with applicable procurement and budgetary requirements.

Requesting Party - Print Name:

By:

Date:

Contractor / Vendor - Print Name:

By:

Date:

What a Financial Change Order Is and when it’s used

A Financial Change Order is a formal, written amendment to an existing contract that modifies one or more financial terms — such as price, payment schedule, retainage, or budget allocation. It documents the reason for the change, the dollar impact, any adjustments to milestones or deliverables, and the parties’ mutual approval. Financial Change Orders are most common in construction, procurement, professional services, and project-based engagements where scope or costs change after contract award. A properly executed change order creates an enforceable modification to the original agreement and becomes part of the contract record.

Why a clear Financial Change Order matters

A clear Financial Change Order reduces disputes and delays by recording agreed price and schedule adjustments, providing a single source of truth for accounting, billing, and compliance.

Who typically prepares and approves Financial Change Orders

A Financial Change Order should be prepared by the party proposing the change and reviewed by project managers, contract administrators, and finance teams before approval.

Project managers and estimators who calculate cost and schedule impacts for proposals or claims.
Contract administrators and procurement personnel who track amendments and ensure contractual compliance.
Finance, accounts payable, or owner representatives who validate cost coding and authorize payment changes.

Final approval is usually required from an authorized signatory and, where applicable, any funding authority or owner representative.

Typical signers and approvers

Authorized Signatory

A corporate officer or employee with delegated authority to bind the organization financially. This person confirms budget availability, accepts adjusted terms, and executes the change order on behalf of the party.

Project Representative

The project manager, owner’s representative, or contract administrator who verifies scope changes, approves technical impacts, and provides an operational acceptance that the amended work will proceed under the new financial terms.

Core elements to include in a professional Financial Change Order

A well-formed Financial Change Order clearly ties the modification to the original contract, quantifies cost and schedule impacts, and documents approvals and supporting evidence. Include references, calculations, and signatures to create an auditable amendment.

Reference

Cite the original contract number, effective date, and the change order identifier so the amendment can be cross-referenced to the base agreement and project ledger.

Scope Description

Describe the specific work, deliverables, or line items being added, removed, or altered. Be precise to avoid ambiguity that can cause disputes over performance and payment.

Financial Impact

State the exact dollar increase or decrease, unit rates, tax treatment, reimbursement method, and any retainage adjustments so accounting records remain accurate.

Schedule Adjustment

Specify any change to completion dates, milestones, or delivery timelines and link impacts to liquidated damages or milestone-based payments.

Supporting Documents

Attach cost breakdowns, quotes, timesheets, field reports, or invoices that justify the financial adjustment and support auditability.

Approval Block

Provide printed name, title, company, signature line, and date for each approving party; identify any required witnesses or notarization explicitly.

Step-by-step: completing and approving a Financial Change Order

Follow a clear sequence: prepare the request, attach evidence, route for review, obtain authorization, and record the approved amendment.

01

Prepare: Draft the change description and calculate cost and schedule impacts.
02

Attach: Include quotes, timesheets, photos, or reports supporting the change.
03

Route: Send to contract administrator and finance for review and validation.
04

Authorize: Obtain required signatures and record the executed change order in the project file.

Typical routing and approvals for a Financial Change Order

A change order follows a defined routing path that ensures technical review, financial validation, and final authorization before execution.

Originator: Prepares the proposed amendment with justification and initial cost estimate.
Technical Review: Project team checks scope and verifies technical feasibility and quantity adjustments.
Finance Review: Accounting validates budget, coding, and payment terms.
Final Authorization: Authorized signatory executes the change order and returns copies to stakeholders.

Common digital workflow settings for electronic Financial Change Orders

Configure your e-sign and routing workflow to capture signatures, required fields, and an audit trail to support enforceability and recordkeeping.

Field	Configuration
Required Fields	Make signatures, amount, and effective date mandatory.
Routing Order	Set sequential approval: originator → technical → finance → signatory.
Authentication	Use email plus SMS code or stronger methods for sensitive transactions.
Retention	Enable automatic archiving and export of the signed PDF and audit log.

Digital signing and technical considerations

Choose a platform that supports multi-signer workflows, audit trails, and the file formats your organization uses.

File Types: PDF, DOCX, and Excel supported for templates and exports.
Integrations: Connectors for SharePoint, NetSuite, Salesforce, and cloud storage simplify routing.
Security: TLS in transit and AES-256 at rest protect document data.

Confirm the platform can produce a tamper-evident signed PDF and retain an accessible audit trail for compliance and internal controls.

Typical timelines and deadlines for processing a Financial Change Order

Establish internal SLAs for review and approval to avoid payment delays or project slippage; document expected response times on the change order form.

Response SLA:

7–14 business days for initial technical and cost review in many organizations.

Finance Review:

Up to 10 business days to validate budget and update ERP coding.

Signature Turnaround:

Aim for 3–5 business days when using electronic routing and e-signatures.

Invoice Adjustment:

Invoice changes applied at next billing cycle or as specified by contract terms.

Record Update:

File the approved change order in contract repository within 48 hours of execution.

Key processing milestones after a change order is submitted

A simple milestone timeline clarifies owner expectations and helps teams track progress from submission to accounting closure.

01

Submission

Originator submits the change order with attachments for review.

02

Technical Approval

Project team confirms scope and schedule impacts.

03

Financial Approval

Finance confirms budget and payment terms; issues PO amendment if needed.

04

Execution and Filing

Authorized signatory signs and the executed amendment is archived.

Common mistakes to avoid when preparing a Financial Change Order

Vague scope descriptions that leave room for differing interpretations and later disputes over deliverables or pricing.
Missing supporting documentation such as vendor quotes or timesheets that makes the cost unsupported in audit reviews.
Failure to obtain an authorized signature or to confirm delegated signing authority before acting on the change order.
Not updating the project budget, invoice schedules, or contract ledger leading to payment errors and accounting reconciliation problems.

Consequences of incorrect or unsigned Financial Change Orders

Payment Delays: Invoices may be rejected until a properly executed change order is on file.

Contract Disputes: Ambiguity in scope or pricing can lead to costly claims or litigation.

Audit Findings: Insufficient documentation risks internal and external audit exceptions.

Bond / Lien Issues: Unapproved cost extensions can affect bonding and lien rights.

Regulatory Exposure: Public contracts may trigger compliance violations without proper approvals.

Reputational Harm: Repeated errors can damage supplier or owner relationships.

Practical examples of Financial Change Orders in action

Two illustrative scenarios show how a change order records cost and schedule impacts while preserving auditability and approvals.

Construction Project Example

A subcontractor documents an unforeseen site condition requiring additional soil remediation

Cost added at unit rates with line-item backup
The owner approves the $42,750 increase after review; accounting posts a PO amendment and payment follows the next billing cycle with the signed change order retained in the project folder.

Professional Services Example

A consultant scope expands to include extra deliverables mid-project

Parties agree on a fixed-fee supplement and a two-week schedule extension
The client signs the change order electronically; project manager updates the schedule and finance issues an adjusted invoice reflecting the agreed supplemental fee.

Comparing eSignature vendor pricing and key features for change-order workflows

Select an eSignature solution that matches required features such as bulk send, audit trails, HIPAA support, and envelope or session limits; signNow appears first for parity with the table below.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no credit card required	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA available)	Yes	Yes	No	No

Frequently asked questions about Financial Change Orders and e-signing

Answers to common questions on legal validity, signatures, notarization, revisions, and storage to help avoid processing errors and compliance gaps.

Need help? Contact support

Are electronic signatures valid?
Yes. Electronic signatures are generally legally binding under the federal ESIGN Act (15 U.S.C. ch. 96, 2000) and state UETA laws where adopted, provided intent, consent, attribution, and reliable record retention are present; some narrow exceptions apply for specific document types.
When is a notary required?
A notary is required only when the contract or jurisdiction specifically mandates notarization, or when a self-proving affidavit is needed; for notarized change orders use a remote or in-person notary consistent with state notary law and retention of the notarial journal.
What makes a change order legally enforceable?
Clear identification of the original contract, a precise description of the change, mutually agreed financial and schedule terms, and execution by authorized signatories create an enforceable contract amendment under general contract law principles.
How do I correct an executed change order?
Prepare a new amendment or corrective change order describing the error and the corrected terms; obtain the same level of approvals as the original and retain both documents for audit and dispute resolution purposes.
How long should executed change orders be kept?
Retain change orders for the life of the contract plus standard retention periods applicable to the document type; follow IRS guidance for tax records (IRC §6501(a)) and HIPAA rules for health records (45 CFR §164.530(j)) where applicable.
Who can sign on behalf of a company?
Only persons with actual delegated authority may bind an entity. Verify delegation via corporate resolution or written authorization; avoid accepting signatures without documented signing authority to reduce dispute risk.

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