What it is
Unapproved change orders and claims are where contractors and auditors disagree most. The question is whether the entity has enforceable rights and how much revenue is safe to include in the transaction price. This log puts each item, its status and the judgment behind it on one page.
Each change order records its status, whether rights are enforceable, the amount management includes, the cost already incurred and any approval that arrives after the period end. The workbook caps the included amount at the amount requested, sets it to zero where rights are not enforceable, and shows cost incurred above the revenue included.
When to use it
- At year end, to document the contract modification and variable consideration judgments by job.
- During the audit of the estimate at completion, to tie unrecovered cost into the loss provision test.
- When disputes with an owner are open and counsel has given an assessment.
What’s inside
- Change orders tab: 60 rows with status, enforceable rights, included and excluded amounts and unrecovered cost
- Claims tab: 25 rows with counsel assessment and the amount included
- Flags for disputed items included, amounts without enforceable rights and subsequent approvals below the amount included
- Summary by status with ties to the log totals
Standard cited
This template follows ASC 606. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Can an unpriced change order be included in revenue?
It can be treated as a contract modification if the parties have approved the change in scope, or if enforceable rights exist and the entity can estimate the price. The amount included is limited so that a significant reversal of cumulative revenue is not probable.
What happens to cost incurred on work that is not yet approved?
The cost goes into the estimate at completion and is recognized as work is performed. The log shows the cost above the revenue included, so the project and the loss provision test reflect it.
Why record an approval received after the period end?
A later approval at less than the amount included is evidence about conditions at the balance sheet date. The log flags it so the team can evaluate a reversal under the subsequent events guidance.
Related templates
- Construction WIP Schedule (Over / Under Billings)
- Construction Estimate at Completion and Fade Analysis
- Audit Program: Construction Contractor
- Construction Retainage and Surety Bonding Schedule
Last updated 11/05/2026. All free templates.