Change orders in a remodel: how they work and how to keep them under control

A change order is a written amendment to your remodel contract. It records that the work, the price, or the schedule changed, and says by how much. Every remodel has a few. The trouble starts when changes are agreed to out loud on site and nobody writes them down until the final invoice shows up.

What triggers a change order

• You change your mind. A different tile, an extra outlet, or moving the island 6 inches.
• An allowance gets settled. If your fixtures cost more or less than the allowance in the contract, the difference is usually handled by change order (AIA Contract Documents).
• Something hidden turns up. Rot, old wiring, or a vent in the wall you planned to remove.
• A product is discontinued or back-ordered, and the substitute costs a different amount.

In Houzz's 2026 study, 31% of homeowners who went over budget cited changes to scope or design, and 22% cited unexpected construction issues (Houzz 2026, PDF).

Put it in writing, signed, before the work

Several states require it. Two examples:

• California: changes to a home improvement contract must be in writing, legible, and easy to understand, and must tell you your rights to cancel. Once signed, a change order becomes part of the written contract (CSLB).
• Maine: each change order must be in writing, must state both the previous contract price and the revised price, and must be signed by both parties (10 M.R.S. § 1488).

Even where it isn't the law, it's the habit that protects both sides.

What a good change order includes

1. A number and the date
2. What changed, specifically (brand, model, quantity, location)
3. Why it changed (owner request, allowance settlement, hidden condition)
4. The price change, as a dollar amount, credit or added cost
5. The previous contract total and the new contract total
6. The schedule impact in days
7. Signatures from both sides

Don't skip #6. A $400 change that adds two weeks can cost more than $400 once you count the extra time.

Keep a running total

A homeowner's change-order log only needs a few columns:

Keep proposed and approved separate. Only approved changes go into your revised budget. Proposed ones are a forecast you can still say no to. Then do the arithmetic every week:

• Revised budget = original contract + approved change orders
• Drift = revised budget − what you originally planned

If the drift is eating into your contingency, you'll see it while there's still time to cut something else.

How to keep change orders down

• Decide before demo. NKBA's advice is to "avoid changing your mind once products are ordered and installation begins," and to have products you supply on hand before work starts (NKBA Bath Planner).
• Price allowances realistically when you compare bids.
• Ask up front how hidden conditions are priced. Time and materials? A fixed unit rate?
• Never approve on the spot. Ask for the written change order, then sign it.

Track it without a spreadsheet

RenoBinder has a built-in change-order log. Each change gets an amount, days of delay, a date, and a status (proposed, approved, or rejected). Your budget shows the revised total and drift right next to what's committed and paid. It's included in the free plan for one room.

General information, not legal advice. Requirements vary by state. Check with your state's contractor licensing board.

Open the free tool

Launch offer: 30% off with code LAUNCH30