Change Orders Explained

What a change order is

A change order is a written, signed agreement that changes the scope, price or schedule after the contract is signed. Changes are normal - hidden rot, a code requirement, or you choosing a different tile. What matters is that each one is written down, priced and approved before the work is done. California, for example, requires changes to a home improvement contract to be in writing and signed; many states have similar rules.

A good change order includes

• What is changing, described clearly
• Why (owner request, hidden condition, code requirement)
• Price change (add or credit) with how it was figured
• Schedule change in days
• New contract total
• Signatures and date from both parties - before the work

How to handle a change, step by step

1. Stop and ask for photos or a look at the problem.
2. Ask for the change in writing with a price.
3. Compare against unit prices in your contract.
4. Sign only when you agree; keep a copy.
5. Track the running total of changes vs. your contingency.

Keeping changes under control

• Make selections before work starts
• Put realistic allowances in the contract
• Keep a contingency (many homeowners set aside money for surprises - older homes usually need more)
• Avoid verbal 'while you're here' requests
• Ask for unit prices for likely unknowns (decking, rot, rock) in the original bid

Sources

• What should I look for in a contract? California Contractors State License Board
• Home Improvement Contracts consumer guide (PDF) California CSLB
• How To Avoid a Home Improvement Scam Federal Trade Commission

External sites open in a new tab; Corky's MHS™ is not affiliated with them. Statutes and agency pages change - check the current version.