{"id":2030,"date":"2025-06-04T19:31:52","date_gmt":"2025-06-04T19:31:52","guid":{"rendered":"https:\/\/before-you-build.buildzoom.com\/navigating-change-orders"},"modified":"2025-10-16T16:02:45","modified_gmt":"2025-10-16T16:02:45","slug":"navigating-change-orders","status":"publish","type":"page","link":"https:\/\/before-you-build.buildzoom.com\/?page_id=2030","title":{"rendered":"Navigating Change Orders"},"content":{"rendered":"\t\t<div data-elementor-type=\"page\" data-elementor-id=\"2030\" class=\"elementor elementor-2030\">\n\t\t\t\t<div class=\"elementor-element elementor-element-225bc0e9 e-flex e-con-boxed e-con e-parent\" data-id=\"225bc0e9\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4ae1bb52 elementor-widget elementor-widget-text-editor\" data-id=\"4ae1bb52\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2 id=\"h.63rwzzkzfafp\" class=\"c2\"><span style=\"font-size: 16px;\">How to understand, document, and manage changes during construction<\/span><\/h2><h3 id=\"h.302div1kvxk3\" class=\"c3\"><span class=\"c10\">Introduction<\/span><\/h3><p class=\"c8\">Even the most well-planned projects encounter changes. Maybe you decide to upgrade finishes, swap a layout element, or something unexpected turns up behind the walls. These changes are normal, but they should be documented clearly and agreed upon through a <span class=\"c15\">change order<\/span><span class=\"c5\">\u00a0to avoid disputes, scope confusion, or surprise costs.<\/span><\/p><p class=\"c8\"><span class=\"c5\">This page will walk you through what a change order is, how it works, when to use it, and how to handle different types of changes as your project progresses.<\/span><\/p><h3 id=\"h.qsfvdnsnjq07\" class=\"c3\"><span class=\"c10\">What Is a Change Order?<\/span><\/h3><p class=\"c8\">A <span class=\"c15\">change order<\/span><span class=\"c5\">\u00a0is a formal document that modifies the original construction contract. It outlines changes in scope, materials, price, and sometimes the project timeline. Any time work is added, removed, or significantly altered from the agreed scope, it should be captured in writing through a signed change order.<\/span><\/p><p class=\"c8\"><span class=\"c5\">Typical reasons for change orders:<\/span><\/p><ul class=\"c12 lst-kix_uid4sqe6nlc-0 start\"><li class=\"c4 li-bullet-0\"><span class=\"c5\">You request something different (e.g., upgrade to wood floors)<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">The contractor uncovers something unexpected (e.g., termite damage behind a wall)<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">The city or building department requires a change during plan review or inspection<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">The plans were unclear or missing information<\/span><\/li><\/ul><p class=\"c8\">Not all change orders are bad. In fact, legitimate change orders are a normal and expected part of most construction projects<span class=\"c5\">. As a project evolves and more information comes to light, through demolition, inspections, or evolving design decisions, it\u2019s common to adjust the scope. The goal of pre-construction planning is to minimize avoidable or predictable changes, but not every issue can be foreseen. A well-managed change order process ensures these adjustments are handled transparently and with mutual agreement.<\/span><\/p><p class=\"c8\"><span class=\"c5\">Even small changes can affect labor, materials, or schedule, so it\u2019s important to document them.<\/span><\/p><h3 id=\"h.lqrnqaqv2el4\" class=\"c3\"><span class=\"c10\">Change Order vs. Contract Addendum<\/span><\/h3><p class=\"c8\"><span class=\"c5\">While both are formal modifications, they serve different purposes.<\/span><\/p><p class=\"c8\"><span class=\"c0\">Change Order<\/span><\/p><ul class=\"c12 lst-kix_5ih4aj945v2y-0 start\"><li class=\"c4 li-bullet-0\">Used for <span class=\"c15\">scope-specific changes<\/span><span class=\"c5\">\u00a0within the original agreement<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Example: Changing the tile, adding a window, removing a closet<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Typically prepared by the contractor and signed by both parties<\/span><\/li><\/ul><p class=\"c8\"><span class=\"c0\">Contract Addendum<\/span><\/p><ul class=\"c12 lst-kix_29107unhdfm9-0 start\"><li class=\"c4 li-bullet-0\">Used to <span class=\"c15\">modify the core terms<\/span><span class=\"c5\">\u00a0of the contract itself<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Example: Changing payment structure, extending project timeline due to financing delays, updating the overall contract value<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">May be used if a large group of changes are bundled together<\/span><\/li><\/ul><p class=\"c8\"><span class=\"c0\">When to use which:<\/span><\/p><ul class=\"c12 lst-kix_qfk4060j50h-0 start\"><li class=\"c4 li-bullet-0\">If you\u2019re changing the work being done, use a <span class=\"c0\">change order<\/span><\/li><li class=\"c4 li-bullet-0\">If you\u2019re changing how the contract itself functions, use an <span class=\"c0\">addendum<\/span><\/li><\/ul><h3 id=\"h.uf0755edhkk8\" class=\"c3\"><span class=\"c10\">Types of Change Orders<\/span><\/h3><p class=\"c8\"><span class=\"c5\">There are several common scenarios:<\/span><\/p><p class=\"c8\"><span class=\"c0\">Owner-Requested Changes<\/span><\/p><ul class=\"c12 lst-kix_cq6jp6nhd3ok-0 start\"><li class=\"c4 li-bullet-0\"><span class=\"c5\">Finish upgrades, added features, or layout tweaks requested during construction<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Example: Upgrading countertops to quartz, adding a built-in desk<\/span><\/li><\/ul><p class=\"c8\"><span class=\"c0\">Contractor-Initiated Changes<\/span><\/p><ul class=\"c12 lst-kix_4kipkuvrmkxc-0 start\"><li class=\"c4 li-bullet-0\"><span class=\"c5\">Conditions encountered during construction require new work<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Example: Dry rot under flooring, missing insulation, HVAC ductwork relocation<\/span><\/li><\/ul><p class=\"c8\"><span class=\"c0\">Permitting or Inspection Changes<\/span><\/p><ul class=\"c12 lst-kix_e3cknh8fj3cw-0 start\"><li class=\"c4 li-bullet-0\"><span class=\"c5\">Changes required by the building department after plan check or during inspection<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Example: Fire blocking, additional insulation, relocating plumbing vents<\/span><\/li><\/ul><p class=\"c8\"><span class=\"c0\">Clarification-Based Changes<\/span><\/p><ul class=\"c12 lst-kix_idb9ipmf73mk-0 start\"><li class=\"c4 li-bullet-0\"><span class=\"c5\">Result from gaps or ambiguity in the original plans or scope<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Example: A lighting plan that doesn\u2019t specify dimmer switches<\/span><\/li><\/ul><p class=\"c8\"><span class=\"c0\">Deductive Change Orders<\/span><\/p><ul class=\"c12 lst-kix_5b1u0fghazg4-0 start\"><li class=\"c4 li-bullet-0\"><span class=\"c5\">These reduce the scope of work, and therefore the cost<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Example: Removing custom built-ins, simplifying exterior trim, cutting back on landscape elements<br \/>A deductive change order results in a credit back to the owner and should still be documented formally<\/span><\/li><\/ul><h3 id=\"h.fm73gsdijx0w\" class=\"c3\"><span class=\"c10\">How to Document a Change Order<\/span><\/h3><p class=\"c8\">Change orders should be submitted in writing and signed by both parties <span class=\"c15\">before<\/span><span class=\"c5\">\u00a0the work is done.<\/span><\/p><p class=\"c8\"><span class=\"c5\">A typical change order includes:<\/span><\/p><ul class=\"c12 lst-kix_vd8bhoppxr6p-0 start\"><li class=\"c4 li-bullet-0\"><span class=\"c5\">Description of the change<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Reason for the change<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Pricing impact (additional or credit)<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Timeline impact (added days or no impact)<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Signatures from both the contractor and owner<\/span><\/li><\/ul><p class=\"c8\"><span class=\"c5\">Change orders can be managed on paper, through email with written approval, or via construction software.<\/span><\/p><p class=\"c8\"><span class=\"c15\">Tip:<\/span><span class=\"c5\">\u00a0Don\u2019t rely on verbal agreements. If it\u2019s not documented, it\u2019s easy to forget or misinterpret later.<\/span><\/p><h3 id=\"h.xqdtfd1skcko\" class=\"c3\"><span class=\"c10\">How Change Orders Affect Cost &amp; Timeline<\/span><\/h3><p class=\"c8\"><span class=\"c5\">Most change orders involve a cost adjustment. This can be a:<\/span><\/p><ul class=\"c12 lst-kix_h3owt1b54zgj-0 start\"><li class=\"c4 li-bullet-0\"><span class=\"c5\">Flat price<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Time and materials (T&amp;M) rate<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Allowance adjustment (if finishes were selected under a pre-set allowance)<\/span><\/li><\/ul><p class=\"c8\"><span class=\"c5\">Some may also affect the timeline. For example, adding a new bathroom could add 2\u20133 weeks, while swapping a light fixture may have no impact.<\/span><\/p><p class=\"c8\"><span class=\"c5\">Ask your contractor:<\/span><\/p><ul class=\"c12 lst-kix_id3sp4mpurad-0 start\"><li class=\"c4 li-bullet-0\"><span class=\"c5\">What\u2019s the total cost difference?<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Does this change add days to the schedule?<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Is anything else affected by this change (inspections, permits, subcontractors)?<\/span><\/li><\/ul><p class=\"c8\"><span class=\"c15\">How Change Order Pricing Is Often Structured in Contracts<br \/><\/span><span class=\"c5\">Many contracts include a section that explains how change orders are priced. A common structure is:<\/span><\/p><p class=\"c8 c14\">\u201c<span class=\"c17\">Change orders will be billed based on actual costs plus a contractor markup of 15% for overhead and profit.<\/span><span class=\"c5\">\u201d<\/span><\/p><p class=\"c8\"><span class=\"c5\">This means if you request a change that adds $1,000 in labor and materials, the total charge would be $1,150 with markup included.<\/span><\/p><p class=\"c8\"><span class=\"c5\">In some cases, the markup may vary for subcontracted work vs. in-house work, or additional fees may be added for project management or administrative time.<\/span><\/p><p class=\"c8\"><span class=\"c0\">Example Change Order Breakdown:<\/span><\/p><table class=\"c20\"><tbody><tr class=\"c16\"><td class=\"c13\" colspan=\"1\" rowspan=\"1\"><h4 class=\"c21\"><span class=\"c15\">Description<\/span><\/h4><\/td><td class=\"c7\" colspan=\"1\" rowspan=\"1\"><h4 class=\"c21\"><span class=\"c15\">Cost<\/span><\/h4><\/td><\/tr><tr class=\"c16\"><td class=\"c13\" colspan=\"1\" rowspan=\"1\"><p class=\"c1\"><span class=\"c5\">Additional electrical outlets<\/span><\/p><\/td><td class=\"c7\" colspan=\"1\" rowspan=\"1\"><p class=\"c1\"><span class=\"c5\">$400<\/span><\/p><\/td><\/tr><tr class=\"c16\"><td class=\"c13\" colspan=\"1\" rowspan=\"1\"><p class=\"c1\"><span class=\"c5\">Drywall patch and paint touch-up<\/span><\/p><\/td><td class=\"c7\" colspan=\"1\" rowspan=\"1\"><p class=\"c1\"><span class=\"c5\">$250<\/span><\/p><\/td><\/tr><tr class=\"c16\"><td class=\"c13\" colspan=\"1\" rowspan=\"1\"><p class=\"c1\"><span class=\"c5\">Materials (wire, boxes, paint)<\/span><\/p><\/td><td class=\"c7\" colspan=\"1\" rowspan=\"1\"><p class=\"c1\"><span class=\"c5\">$150<\/span><\/p><\/td><\/tr><tr class=\"c16\"><td class=\"c13\" colspan=\"1\" rowspan=\"1\"><p class=\"c1\"><span class=\"c5\">Subtotal<\/span><\/p><\/td><td class=\"c7\" colspan=\"1\" rowspan=\"1\"><p class=\"c1\"><span class=\"c5\">$800<\/span><\/p><\/td><\/tr><tr class=\"c16\"><td class=\"c13\" colspan=\"1\" rowspan=\"1\"><p class=\"c1\"><span class=\"c5\">Contractor markup (15%)<\/span><\/p><\/td><td class=\"c7\" colspan=\"1\" rowspan=\"1\"><p class=\"c1\"><span class=\"c5\">$120<\/span><\/p><\/td><\/tr><tr class=\"c16\"><td class=\"c13\" colspan=\"1\" rowspan=\"1\"><p class=\"c1\"><span class=\"c15\">Total Change Order<\/span><\/p><\/td><td class=\"c7\" colspan=\"1\" rowspan=\"1\"><p class=\"c1\"><span class=\"c15\">$920<\/span><\/p><\/td><\/tr><\/tbody><\/table><p class=\"c8\"><span class=\"c5\">Always review how the change order is priced, and ask for clarification if costs seem high or unclear. If the contract doesn\u2019t explain how change orders are handled, bring it up before signing. Clear expectations up front can prevent surprise markups later.<\/span><\/p><h3 id=\"h.jgr3kzid7bta\" class=\"c3\"><span class=\"c10\">Change Order Best Practices<\/span><\/h3><ul class=\"c12 lst-kix_4574ejj2cnkh-0 start\"><li class=\"c4 li-bullet-0\"><span class=\"c5\">Keep a running log of all approved changes and their cost\/timeline impact<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Clarify that work should not begin until a CO is signed<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">If you\u2019re unsure whether something is a change order or not, ask<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Plan for at least 5\u201310% of your construction budget to go toward change orders<\/span><\/li><\/ul><h3 id=\"h.2bawksada86m\" class=\"c3\"><span class=\"c10\">What If You Disagree with a Change Order?<\/span><\/h3><p class=\"c8\"><span class=\"c5\">It\u2019s okay to ask questions or push back on change order pricing. Common steps:<\/span><\/p><ul class=\"c12 lst-kix_12biwzxqwh8u-0 start\"><li class=\"c4 li-bullet-0\">Ask for a cost breakdown<span class=\"c5\">\u00a0(labor, materials, markup)<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Get clarification on why the work is needed or why it wasn\u2019t included initially<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Ask if it\u2019s time-sensitive or if you can defer it<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">If needed, get a second opinion, especially for large changes<\/span><\/li><\/ul><p class=\"c8\"><span class=\"c5\">You don\u2019t have to approve every change, and your contractor should be open to discussing alternatives.<\/span><\/p><h3 id=\"h.6ohtub4iz7nh\" class=\"c3\"><span class=\"c10\">Action Items for Project Owners<\/span><\/h3><ul class=\"c12 lst-kix_9aqs17sqsdkm-0 start\"><li class=\"c4 li-bullet-0\"><span class=\"c5\">Review your original contract to see how change orders are handled<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Confirm who will prepare them and what format they use<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Make sure your contractor explains any change that will affect price or schedule<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Keep copies of every signed change order in your project file<\/span><\/li><li class=\"c4 li-bullet-0\"><span class=\"c5\">Include a change order buffer in your initial budget<\/span><\/li><\/ul><h3 id=\"h.rzz575grj3fx\" class=\"c3 c14\"><span class=\"c10\">What\u2019s Next: Wrapping Up Preconstruction<\/span><\/h3><p class=\"c8\"><span class=\"c5\">Once change orders are understood and your contractor is selected, you\u2019re approaching the final steps before construction begins. But there are still a few important pieces to organize before the project officially kicks off.<\/span><\/p><p class=\"c8\">The next section, <span class=\"c15\">Preconstruction Wrap-Up<\/span><span class=\"c5\">, covers what to expect and prepare for in the final phase before breaking ground. You\u2019ll learn how to run a productive kickoff meeting, set up tools to track your timeline, get clarity on FF&amp;E (fixtures, furniture, and equipment), and understand what happens next once the construction team takes over.<\/span><\/p><p class=\"c8 c14\"><span class=\"c17\">Continue to <\/span><span class=\"c17 c15\"><a href=\"https:\/\/before-you-build.buildzoom.com\/?page_id=2034\">Preconstruction Wrap-Up<\/a><\/span><span class=\"c19 c17\">\u00a0to tie everything together and step confidently into the construction phase.<\/span><\/p><p class=\"c8 c9\">\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>How to understand, document, and manage changes during construction Introduction Even the most well-planned projects encounter changes. Maybe you decide to upgrade finishes, swap a layout element, or something unexpected turns up behind the walls. These changes are normal, but they should be documented clearly and agreed upon through a change order\u00a0to avoid disputes, scope [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"parent":2015,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-2030","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Navigating Change Orders - BuildZoom - Before You Build<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/before-you-build.buildzoom.com\/?page_id=2030\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Navigating Change Orders - BuildZoom - Before You Build\" \/>\n<meta property=\"og:description\" content=\"How to understand, document, and manage changes during construction Introduction Even the most well-planned projects encounter changes. 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Maybe you decide to upgrade finishes, swap a layout element, or something unexpected turns up behind the walls. 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