Contractor asking for more money? What to check before you pay

Your contractor says the job will cost more than the number you agreed on. Sometimes that's fair: you changed something, or the walls held a surprise. Sometimes it isn't. Don't argue about it and don't pay it yet. Get out the paperwork and work through the steps below.

Start with what you actually signed

How much room the contractor has to raise the price depends on the document:

• An estimate is a best guess. The FTC says a written estimate should include a description of the work, the materials, the completion date, and the price (FTC). Whether a final bill can go above an estimate depends on what you agreed to and your state's rules.
• A fixed-price contract sets the price for the scope it describes. Changes to price or scope should go through a written change order.
• Cost-plus or time-and-materials means the price moves with actual costs by design. What you're owed is the receipts, the hours, and the markup the contract allows.
• Allowances inside any of these are placeholders. When your real pick costs more, the difference is usually settled by change order (AIA Contract Documents).

Is this a real change or an overrun?

Price increases usually come from one of these:

1. You changed the scope. A different tile, an added outlet, a moved wall.
2. An allowance got settled. Your faucet cost $600 and the allowance was $300.
3. A hidden condition turned up. Rot, old wiring, or a pipe in the wall you planned to remove. Check whether your contract says how these are priced.
4. The contractor underpriced the job. On a fixed-price contract, that's normally the contractor's problem, not yours, unless the contract says otherwise.

The first three are common. 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). If the extra cost comes from something hidden behind a wall, see unforeseen conditions.

What some states require

Rules vary by state. Two examples:

• California: if the contract price or scope needs to change, "it MUST be done with a written 'Change Order,' signed by the customer and contractor prior to the change" (CSLB). CSLB also says payments can't exceed the value of the work performed, apart from the down payment.
• Maine: each change order must be in writing, must state the previous contract price and the revised price, and must be signed by both parties (10 M.R.S. § 1488).

If your state has no specific rule, your contract's change clause is what counts.

What to do this week

1. Ask for the request in writing. It should say what changed, why, the dollar amount, the effect on the schedule, and which contract clause it falls under. Ask for backup: supplier invoices, photos of the hidden condition.
2. Check it against your contract and your change-order log. Is this already in the scope? Was it covered by an allowance? Has it already been billed once?
3. Sign a specific change order, not a blanket one. It should show the previous contract total and the new total. Don't agree to "whatever it costs."
4. Look for trade-offs. If the increase is real, can you take back money somewhere else, such as a cheaper pick on another allowance or a deferred item?
5. Keep paying on schedule, for work done. Don't pay ahead to keep the peace. In California, payments can't run ahead of the work (Cal. BPC § 7159.5).
6. Keep records. The FTC suggests following any phone conversation with a letter sent by certified mail, return receipt requested, and keeping notes and copies of letters and documents (FTC). Dated photos help too.

If the contractor stops work until you pay something you don't think you owe, see what to do in a contractor dispute and what to do when a contractor won't finish.

Re-plan before the next payment

Once you know the real number, rework the budget:

• Revised budget = original contract + approved change orders
• Drift = revised budget − your original plan
• If the drift is bigger than your contingency, decide now what to cut. That's easier before the next item is ordered.

Keep the running total in one place

RenoBinder keeps a change-order log next to your budget. Each change is marked proposed, approved, or rejected, with an amount and days of delay, so you can see the revised total and drift before you agree to anything. Budget lines show planned, committed, and paid.

General information, not legal advice. Contract and consumer rules vary by state. For a large or disputed amount, talk to a local attorney or your state's contractor licensing board.

Open the free tool

Launch offer: 30% off with code LAUNCH30