Section 1
Question 1: Does the signed contract give you a mechanism to bill it?
This is the gate. Either your agreement contains a price-adjustment mechanism, an allowance line for the affected material, or a valid change-order process that covers cost increases, or it does not. If it does not, you are not deciding whether to send a change order. You are deciding whether to ask for a favor, which is a different conversation with a much lower success rate. • If yes: proceed to Question 2. • If no: you will likely eat this one. Note it, and fix the contract for the next job before you finish grieving this one.
Section 2
Question 2: Can you document the increase to a stranger's satisfaction?
A change order for a cost spike is only as strong as the evidence behind it. The test is whether someone with no stake in the job, a mediator, an owner's spouse, a skeptical property manager, would look at your file and agree the cost moved. The contractors who bill increases cleanly are not more aggressive. They kept the bid-time quote. The ones who eat increases usually could have billed them but cannot prove the starting price, so the change order looks like a shakedown instead of a documented pass-through.
Section 3
Question 3: Is the amount worth the relationship cost of collecting it?
Only after the first two are settled does judgment enter. A documented, contractually valid increase can still be worth absorbing if the number is small and the client is a repeat source of work or referrals. That is a deliberate investment in the relationship, made from a position of strength. It is completely different from eating a cost because you have no grounds to bill it. The first is generosity. The second is a paperwork failure wearing the costume of generosity. Run the amount against a rough rule: if the increase is inside your normal margin cushion and the client is worth more than the hit over the next year, absorbing it can be the right call. If it threatens the job's profitability or the client is transactional, bill it, assuming Questions 1 and 2 said yes.
Section 4
The decision in one line
You bill it when the contract permits it, the file proves it, and the number matters. You absorb it when the contract permits it, the file proves it, and the relationship is worth more than the number. You eat it involuntarily when the contract or the file cannot support the claim, and that outcome was decided at bid time, not at the moment of the spike.
Section 5
The fitness test
You are running this test correctly if your answer to "eat it or bill it" comes from your contract file and your dated quotes, not from your gut read of whether the client will be annoyed. If you find yourself deciding on vibes, the problem is that your paperwork cannot back either choice, and that is the thing to fix. This is educational, not legal advice. Change-order rights and documentation standards vary by contract and jurisdiction; consult a licensed attorney before relying on any of this in a dispute.