What a Change Order Is and Why It Happens
A change order is a formal written document that modifies the original scope, price, or timeline of a remodeling contract. Change orders happen when homeowners request something not in the original contract (upgraded tile, added niche, additional electrical outlet), when hidden conditions discovered after demolition require unexpected work (mold remediation, subfloor replacement, rerouting plumbing), or when the contractor identifies an error or omission in the original quote. Change orders are a normal part of most remodeling projects, but their frequency and cost can be managed.
How Change Orders Affect Your Budget
Change orders typically carry a contractor markup of 20 to 35 percent on top of the cost of materials and labor. A $500 tile upgrade becomes a $625 to $675 change order with markup. This is standard industry practice — contractors price their overhead and profit into change order rates. The best protection is making all selections before work begins and asking your contractor to price any potential changes before you commit to them.
Best Practices for Managing Change Orders
Never authorize any change order verbally. All change orders should be in writing, signed by both parties, before the work is performed. A change order should specify: what is changing, the cost impact, any timeline impact, and both parties' signatures and date. Responsible contractors will not perform out-of-scope work without a signed change order. If a contractor tells you something verbally and then bills for it later, that is a dispute that could have been avoided with written documentation.
Frequently Asked Questions
Are change orders normal in remodeling?
Yes. Most remodeling projects have at least one change order. Industry estimates suggest that 80 percent of projects have at least one unexpected cost. The key is managing change orders with written documentation and pre-authorization rather than letting them accumulate untracked.
Can I refuse to pay a change order?
You can dispute a change order if it was not pre-authorized in writing or if the work done does not match what was agreed. Verbal agreements are harder to dispute. A properly written change order signed before work is performed is a binding part of the contract. Review your contract for the change order process before work begins so you know your rights.
How do I avoid excessive change orders?
Complete all material selections and design decisions before demolition begins. Ask your contractor to include all known scope in the original contract. Ask about what scenarios might trigger additional costs (damage behind walls, outdated wiring, etc.) and get estimates for likely scenarios. A detailed original contract is the most effective protection against change order surprises.