Change Orders, Explained: Why They Happen and How to Handle Them

Almost every remodel gets at least one change order, and that's not automatically a red flag. Here's what they are, why they happen even on well-planned jobs, and how to keep them from derailing your budget or your timeline.

A Change Order Is a Written Amendment to the Contract

A change order documents any change to the original scope, price, or schedule after the contract is signed — whether that's adding a task, swapping a material, or adjusting the timeline. It should always be in writing and signed by both parties before the work happens, not agreed to verbally and sorted out later.

Hidden Conditions Are the Most Common Cause

Once walls, floors, or ceilings are opened up, you sometimes find things nobody could have seen during the estimate — water damage behind a shower surround, undersized electrical wiring, or framing that doesn't match the original plans. A contractor who's been doing this a while will build some contingency into the budget for this, but it's rarely possible to eliminate the risk entirely on an older home.

Homeowner-Requested Changes Are the Second Most Common

Mid-project changes of heart happen — upgrading a countertop material, adding a window, moving an outlet. These are usually the easiest change orders to handle because there's no urgency; you have time to get a real number before deciding.

A Good Change Order Spells Out Three Things

Cost, schedule impact, and exactly what's changing in the scope of work. If a change order just says "additional work as discussed" with a dollar figure and nothing else, ask for more detail before signing it — you want to know precisely what you're paying for and why.

Not Every Surprise Should Become a Change Order

Some issues are legitimately part of the original scope and shouldn't generate an extra charge — a contractor who nickel-and-dimes for things that should have been anticipated in a competent estimate is worth pushing back on. The distinction usually comes down to whether the condition was reasonably visible or discoverable before the work started.

Build a Contingency Into Your Budget Up Front

A common approach is setting aside roughly 10-20% of your project budget as a contingency for changes, especially on older homes or projects that involve opening up walls. If you don't end up needing it, that's a good outcome — but planning as if you might need it keeps a mid-project change order from becoming a financial emergency.

Ask How Change Orders Are Handled Before You Sign the Original Contract

Before work starts, ask your contractor how they document and price change orders, and make sure the process is in writing in the original contract. A contractor who's upfront about this process before you've signed anything is generally a good sign about how they'll communicate once the project is underway.

Change orders aren't a sign a project is going wrong — they're a normal part of construction, especially on remodels and older homes. If you're planning a project and want a contractor who explains changes clearly instead of springing them on you, request a consultation.

Related: General Contracting