Change Orders: What They Are and How to Avoid Costly Surprises

Change orders are one of the most common sources of conflict — and cost overruns — in home renovation projects. Understanding what they are and how to handle them can save you thousands of dollars.

What Is a Change Order?

A change order is a formal document that modifies the original contract between you and your contractor. It describes a change in scope, materials, or timeline, and specifies the additional cost (or credit) associated with that change.

Change orders are legitimate and sometimes unavoidable. The problem is when they're used to add costs that should have been included in the original quote, or when they're verbal rather than written.

Why Change Orders Happen

How to Protect Yourself

Get a detailed original contract. The more specific the scope of work, materials, and specifications in your original contract, the less room there is for change order disputes. Vague language like "install flooring throughout" invites disagreement.

Require written change orders for everything. Never approve a change verbally. Every change — no matter how small — should be in writing, signed by both parties, before the work is done.

Understand what "allowances" mean. Some contracts include allowances — a budgeted amount for items not yet selected (e.g., "tile allowance: $5/sq ft"). If you choose something more expensive, a change order covers the difference. Make sure allowances are realistic.

Ask about contingencies. For renovation projects (especially older homes), build a 10–15% contingency into your budget for legitimate unknowns. If the contractor says they found unexpected conditions, you'll want documentation and photos before approving.

What to Ask Your Contractor

• "How do you handle change orders — what's the process?"
• "Can you show me examples of how change orders have been documented on past projects?"
• "What happens if unexpected conditions are found — how will I be notified and how quickly?"
• "Is there anything in this scope that could trigger a change order that I should know about now?"

The Bottom Line

Change orders are normal. Unsigned, undocumented, or surprise change orders are not. A professional contractor will have a clear process for documenting changes and will never do additional work without your written approval.

Frequently Asked Questions

Do I have to sign a change order before work begins? Yes — always. Never allow a contractor to proceed with out-of-scope work based on a verbal agreement. If the contractor says "we'll sort out the paperwork later," that's a red flag. A signed change order protects both you and the contractor and should be completed before any additional work starts.

Can a contractor charge me for work I didn't approve? If the work was outside the original contract scope and you didn't sign a change order, you have grounds to dispute the charge. This is why a detailed original contract and written change orders matter — they establish what was agreed to. If a dispute arises, the written contract and signed change orders are the evidence.

What should a change order document include? At minimum: a description of the change in scope, the reason for the change, the additional cost or credit, any impact on the project timeline, and signatures from both you and the contractor. Date it. Keep a copy. A contractor who resists putting this in writing is a contractor you should be concerned about.