Change Order

A change order is a formal modification to your construction contract — changing materials, scope, or design after the project has started — and it’s where renovation budgets go to die.

Why They Happen

You open a wall and find rotted framing. You decide mid-project that you want quartz countertops instead of granite. The tile you picked is backordered for 3 months. The city inspector requires additional structural support that wasn’t in the original plan. Some change orders are unavoidable. Others are the result of poor planning or impulse decisions.

What They Cost

Every change order has two costs: the actual material and labor difference, and the markup. Most contractors add 15-25% overhead and profit to change order work — higher margins than the original contract because change orders disrupt scheduling and require re-engineering. A $2,000 material upgrade might cost $2,800 after markup.

Change orders also delay the project. Each one requires pricing, approval, possible permit revision, and schedule adjustment. Three change orders that each add a week can push your 3-month renovation to 4+ months — which means more months of carrying costs, rental expenses, or living in a construction zone.

Managing Change Orders

Minimize them by making all design decisions before construction starts. Pick every fixture, finish, and material. Get a detailed scope of work in the contract. Build a 10-15% contingency into your budget for unavoidable surprises.

When a change order is necessary, get it in writing with the exact cost, schedule impact, and both parties’ signatures before any work begins. Never approve “we’ll figure out the cost later.” The renovation ROI calculator helps you budget for contingencies, and the home services hub connects you with contractors who provide detailed scopes that minimize surprise changes.