Change Orders: How to Handle Changes Mid-Project

Almost every remodel changes along the way. A wall opens and reveals old wiring, or you decide on a different tile. A change order is the written document that records each change, its cost and its effect on the schedule. The Nevada State Contractors Board is clear that change orders should be in writing and signed by both you and the contractor.

Key takeaways

  • Every change goes in a written change order signed by both sides.
  • Each change order states the work, the price effect and the schedule effect.
  • Keep changes to a minimum: the Board notes they increase cost.
Room stripped to bare walls during a remodel

What the Board says

The Board’s guidance is short: make sure all change orders are in writing, plan carefully and keep changes to an absolute minimum. It notes that change orders are expensive for both the homeowner and the contractor and will increase the cost of the project. If you must make changes, they should be written and signed by both parties.

What a change order should include

  • A short description of the change, with reference to the original scope line.
  • The added or reduced price, or how it will be calculated.
  • The effect on the schedule, in days.
  • Any change to permits or inspections.
  • Signatures and dates from you and the contractor.

Two kinds of changes

Owner-requested changeHidden-condition change
ExampleUpgrading a fixture or moving an outletDamaged framing found behind a wall
Who starts itYouUsually the contractor
How to control itDecide finishes before signingAsk for a contingency and a clear process
What to askPrice and schedule effectPhotos and explanation before approval

Owner-requested changes

Most changes that homeowners regret are small decisions made mid-project, such as moving a light or changing a finish. Each one seems minor but adds up. The best control is a complete scope before bidding, with finishes chosen or covered by clear allowances. See How to Write a Scope of Work Before You Ask for Bids.

Hidden conditions

Opening walls can reveal problems no one could see before. When that happens, ask the contractor to show you the condition, photograph it and explain the proposed fix before you approve anything. Put photos in your binder with the signed change order.

Tip: Agree in the contract on how change orders will be priced and approved. A simple process, agreed at the start, avoids arguments in the middle of the job.

When a change affects permits

Some changes turn permit-free work into permitted work. Moving a sink to a new wall, for example, relocates concealed plumbing, which the City of Las Vegas guide lists as needing a permit. Ask whether each change needs a new or revised permit and inspection.

Pay for changes the same way

Treat change orders like the rest of the contract: pay for the change when the work is done, and include it in the lien releases for that stage. Keep each signed change order next to the payment it relates to in your How to Set Up a Remodel Project Binder.

A simple change order log

Keep a one-page log in your binder with a line for each change: number, date, short description, price effect, schedule effect and whether it is signed and paid. Number change orders in order and refer to them by number in emails and invoices. When the final invoice arrives, you can check it against the original contract plus the log in a few minutes instead of searching through messages.

Changes and the finish date

Each change can move the finish date, even when it adds only a day or two. Several small changes can push a kitchen or bathroom back by weeks, especially if they involve new materials to order or a new inspection. Ask for the schedule effect on every change order and keep a running finish date alongside the running price.

Credits count too

Changes can reduce the price as well as increase it, for example when you supply a fixture yourself or remove an item from the scope. Record credits in change orders just like additions. The Recovery Fund asks for the contract and all change orders, credits and refunds when a claim is filed.

Common mistakes

Approving changes verbally is the most common mistake. Others are approving a change without knowing its price, and forgetting that several small changes can move the finish date.

Frequently asked questions

Can the contractor refuse to make a change?

A change is a new agreement, so both sides must agree. Discuss it and put the result in writing.

What if we disagree about whether something is a change?

Go back to the written scope and contract. That is why a detailed scope matters.

Should I keep a running total?

Yes. Add each change order to a running total so you always know the current contract price.

For how change orders fit into payments, see Deposits and Payment Schedules: Paying for a Remodel in Stages.