A change order is a written agreement that documents a change to the original construction contract. It describes what is changing, how the work will be completed, and whether the change affects the project's cost or schedule.

Change orders are common on renovation projects because existing homes often reveal new information after construction begins. Homeowners may also decide to modify finishes, layouts, or features as the project progresses.

A well-prepared change order helps everyone understand the work being added, removed, or revised before that work begins.

When Are Change Orders Used?

  • The homeowner requests additional work or different materials.
  • Hidden conditions require repairs or modifications.
  • Products become unavailable and suitable alternatives are selected.
  • Design revisions are made after construction has started.
  • Code requirements or inspection findings require changes to the original plan.

What Should a Change Order Include?

  • A clear description of the change.
  • The reason for the change.
  • Any increase or decrease in project cost.
  • Any impact on the construction schedule.
  • Approval before the additional work begins.

How Homeowners Can Manage Change Orders

  • Read each change order carefully before approving it.
  • Ask questions if the scope, pricing, or schedule impact is unclear.
  • Understand that changes often affect more than just cost.
  • Keep copies of approved change orders with your project records.
  • Consider whether the change aligns with your original project goals and budget.

Common Misconceptions

  • A change order means the contractor made a mistake. Many change orders result from homeowner decisions or conditions that could not have been identified before construction began.
  • Change orders only increase project costs. Some change orders reduce the project scope or substitute lower-cost materials, resulting in a credit.
  • Verbal approval is enough. Documenting changes in writing helps ensure everyone has the same understanding before work proceeds.
  • Small changes won't affect the schedule. Even minor revisions may require additional coordination, materials, or inspections.
  • Good projects never have change orders. Many successful renovations include change orders. The goal is to manage them clearly and transparently.

Foundation Tip

Before approving a change order, ask three questions: What is changing? How will it affect my budget? How will it affect my schedule? Understanding all three helps you make informed decisions.

Closing Thought

Change orders are a normal part of many renovation projects. When changes are communicated clearly, documented in writing, and understood by everyone involved, they become a valuable tool for keeping the project aligned with the homeowner's goals.

How Foundation Can Help

A Foundation Strategy Session™ can help homeowners clarify contract questions, decision responsibilities and next steps before construction. Foundation Bid Review™ can help compare proposal scope, assumptions, allowances and exclusions before contractor selection. Foundation provides independent education, organization and decision support; it does not provide legal advice, draft or approve contracts, select contractors or replace qualified professionals.

Important Disclaimer

This article provides general educational information and is not legal, financial, insurance, architectural, engineering or construction advice. Contract requirements, licensing rules, lien laws and project responsibilities vary by jurisdiction and project. Have important agreements reviewed by a qualified local attorney and other appropriate professionals.