Change Orders Driving You Nuts? A Contractor's Guide to Understanding & Managing Them (2024)

    A veteran contractor's no-nonsense guide to construction change orders. Learn why they happen, how to fight unfair costs, and when to call in the pros.

    DIY Fix: $5–$20
    Pro Help: $150–$500
    Time: 15–120 min

    Quick Answer

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    Common Symptoms

    Unexpected cost increases during the project
    Project delays and extended timelines
    Disputes between homeowner and contractor regarding scope or cost
    Feeling blindsided by new invoices or charges

    Possible Causes

    Client-requested changes like different materials or design modifications
    Unforeseen conditions discovered on-site, such as bedrock, hazardous materials, or hidden structural problems
    Errors or omissions in the original architectural plans or construction documents
    New requirements from building inspectors or changes in local codes during the project

    Step-by-Step Diagnosis

    1

    Step 1

    First, grab your original construction contract and read the section on change orders to understand the agreed-upon process.

    2

    Step 2

    Pinpoint the exact task or item that's being changed. Compare it to the original scope of work to confirm it's truly a change.

    3

    Step 3

    Figure out who or what caused the change – was it your request, an unforeseen site issue, or a contractor suggestion?

    4

    Step 4

    Get a detailed written proposal for the change. It must include a cost breakdown for materials and labor and state the impact on the project schedule.

    5

    Step 5

    Ask the contractor to explain why the change is necessary and if any less expensive alternatives exist.

    6

    Step 6

    If the change is technically complex or the cost seems way out of line, consider paying a neutral third-party consultant for a second opinion before you sign anything.

    Change Orders Driving You Nuts? A Contractor's Guide to Understanding & Managing Them (2024)
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    DIY vs Professional Costs

    Carefully reviewing and questioning change order proposals
    DIY$0
    ProN/A
    Time1-2 hours
    Negotiating specific terms and costs of a change order
    DIY$0
    ProN/A
    Time1-3 hours
    Documenting all communications and decisions in writing
    DIY$0
    ProN/A
    TimeOngoing
    Hiring a construction consultant to review a change order
    DIYN/A
    Pro$150-400 per hour
    Time2-5 hours
    Mediation or legal services for a major dispute
    DIYN/A
    Pro$2,000-10,000+
    TimeDays to Weeks

    When to Call a Professional General Contractor

    • When a change order is so large it fundamentally alters the project's budget or scope without a clear and compelling reason.
    • When you and the contractor are at a complete standstill and can no longer have a productive conversation about the issue.
    • If you have a strong suspicion the change order is fraudulent, padded, or is an attempt to make you pay for the contractor's error.
    • If the contractor flat-out refuses to provide a detailed, written change order document that includes cost and schedule impacts.

    Prevention Tips

    • Insist on an extremely detailed initial contract that specifies materials, brands, and includes a clear process for handling change orders.
    • Create a contingency fund of at least 10-20% of the total project cost specifically for unforeseen issues.
    • Communicate constantly with your contractor and document every single decision, no matter how small, in an email or text.
    • Never, ever agree to a change verbally. If it isn't in writing, it didn't happen.
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