Hiring & planning · Updated November 2026
Understanding Change Orders in a Home Project
A change order is a written agreement to change the scope, price or schedule after the contract is signed. Most projects have at least one. The goal is to agree on each change before the work is done, not after.
Why scope changes happen
- Hidden conditions: rotted subfloor under a bathroom, damaged roof decking, old wiring found when walls open.
- Your choices: upgrading tile, moving an outlet, adding a window or changing a layout.
- Code requirements: an inspector requires something the plan did not include.
- Product issues: a selected item is discontinued or back-ordered.
What a good change order includes
- A description of the change and why it is needed.
- The added or reduced cost, with labor and materials shown.
- Any change to the schedule.
- How and when the change will be paid.
- Signatures and dates from you and the contractor before work starts.
Ask for photos when the change is caused by something hidden, such as rot or water damage, so you can see what was found.
Examples
| Change | What to ask for |
|---|---|
| Rotted subfloor found under a bathroom floor | Photos, the square footage replaced and the unit price from your contract. |
| Extra roof decking replaced | Number of sheets replaced and the per-sheet price agreed in the contract. |
| Upgrading to a more expensive tile | The difference between the tile allowance and your selection, including any added labor. |
| Inspector requires extra electrical work | The inspection note or code requirement, plus a written price before work continues. |
How to keep changes under control
- Ask for unit prices for likely surprises in the original contract.
- Make selections (tile, fixtures, cabinets) before work starts where you can.
- Keep a running list of approved changes and their totals.
- Avoid verbal approvals; reply in writing even to a text message.
- Keep a contingency of 10%–20% of the budget for older homes and remodels.