A change order is a written amendment to your construction contract that adjusts scope, cost, or schedule after work has started. Most remodeling projects have at least two or three of them, and on older homes that number climbs higher. Understanding how they work before you sign a contract can save you thousands of dollars and weeks of frustration.
What Actually Triggers a Change Order
Change orders fall into a few predictable categories. Knowing them ahead of time helps you budget for the ones you can anticipate and recognize the ones that signal a problem with your contractor rather than your house.
- Hidden conditions: rotted framing behind a shower wall, knob-and-tube wiring in a 1920s house, cast iron pipe that crumbles when touched, or a subfloor with water damage under old vinyl tile.
- Client-driven changes: swapping a laminate countertop for quartz mid-project, adding a window, moving an outlet, or deciding you want a larger island after cabinets are already ordered.
- Code-driven changes: an inspector requiring additional electrical outlets to meet current code, a smoke detector interconnection requirement, or a plumbing vent that doesn’t meet current standards and needs rerouting.
- Design errors or omissions: a detail missing from the drawings, a dimension that doesn’t work once framing starts, or an appliance that doesn’t fit the space as planned.
On a typical kitchen remodel costing 45,000 dollars, it’s reasonable to budget an additional 10 to 15 percent, roughly 4,500 to 6,750 dollars, for change orders tied to hidden conditions and inspector requirements alone. That number goes up for homes built before 1960, where outdated electrical and plumbing are almost guaranteed to surface once walls open up.
How Pricing Should Work
A legitimate change order includes three things: a description of the work, a price, and a schedule impact. If a contractor tells you verbally that something will “probably add a couple thousand” and never follows up in writing, that’s a red flag. Get it in writing before the work proceeds, even if it delays things by a day.
Pricing usually follows one of two models. Time and materials pricing bills you for actual labor hours plus the cost of materials plus a markup, often 15 to 20 percent. Fixed price change orders quote a flat number for the added scope. Fixed price is easier to budget around, but make sure the scope description is specific. “Repair subfloor damage” is vague. “Replace 32 square feet of water-damaged plywood subfloor in the hall bath, matched to existing 3/4 inch thickness” tells you exactly what you’re paying for.
Ask your contractor upfront what their markup percentage is on change order materials and subcontractor work. Reputable contractors will tell you without hesitation, usually somewhere between 10 and 25 percent depending on the trade and region.
Where the Biggest Surprises Come From
Plumbing and electrical rough-in behind walls account for a large share of unexpected costs, especially in homes over 40 years old. Polybutylene pipe, common in houses built between 1978 and 1995, often needs full replacement once a wall is opened, even if only one section was supposed to be touched. Similarly, aluminum wiring from the 1960s and 70s frequently triggers a full rewire recommendation once an electrician sees it, not just a spot repair.
Structural surprises are the other major category. Removing a wall you assumed was non-load-bearing, only to find a beam or post hidden inside it, can add 2,000 to 8,000 dollars depending on span and the size of header needed. This is why a pre-demolition inspection by a structural engineer, usually 300 to 600 dollars, is worth the cost on any project involving wall removal. It won’t catch everything, but it catches the expensive mistakes.
Flooring transitions are a smaller but common surprise. Removing old tile sometimes reveals a subfloor that’s 3/8 inch lower or higher than expected, requiring leveling compound or additional underlayment that wasn’t in the original bid.
How to Protect Your Budget Before Work Starts
A contingency fund is the single most effective tool against change order stress. Set aside 10 percent of total project cost for a kitchen or bathroom remodel, and 15 to 20 percent for a whole-house renovation or anything touching a home built before 1970. Keep this money separate, mentally and financially, from your “wish list” budget for upgrades.
- Ask for a detailed scope of work in the original contract, not just a dollar total. Specificity reduces disagreements later about what was and wasn’t included.
- Request an allowance breakdown for items you haven’t selected yet, like tile, fixtures, or countertops. If the allowance is 3,500 dollars for countertops and you choose something at 5,200 dollars, you know exactly where that change order number comes from.
- Open up problem areas before finalizing the contract when possible. A contractor who cuts a small inspection hole in a wall before bidding can give you a more accurate number than one working from assumptions.
- Clarify how change orders affect the schedule. A single change order might add three days. Several stacked together can add weeks, especially if materials need to be special ordered.
What to Do When a Change Order Lands on Your Desk
Read the description carefully and ask what alternative exists. Sometimes there’s a cheaper fix that still meets code, such as sistering a damaged joist instead of replacing the full span. Ask your contractor to walk you through why the change is necessary, not just what it costs. If the explanation is vague or the price seems high relative to the scope, it’s reasonable to request a second opinion from another contractor or a consulting inspector, especially for anything over 2,000 dollars.
Keep a running log of every change order signed, including date, cost, and reason. This becomes useful at the end of the project when reconciling the final invoice, and it also helps you spot patterns, like repeated vague change orders from the same subcontractor.
Before signing your next remodeling contract, ask the contractor directly how many change orders their last three similar projects generated and what the average added cost was. A contractor with real numbers to share, rather than a vague reassurance, is one who manages this part of the process well.
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