What Is a Change Order? (A Homeowner's Guide to Remodeling)

A change order is a written document that formally amends your original remodeling contract. It records any changes to the scope of work, materials, timeline, or price that occur after the contract has been signed. Every change order should be signed by both the homeowner and the contractor before any additional work begins. A change order is not a suggestion or a verbal agreement. It is a legally binding amendment to your contract.

Most remodeling cost overruns do not happen because the original price was wrong. They happen because changes were made during construction without being properly documented. A contractor makes a verbal suggestion, the homeowner agrees, and two weeks later there is a line item on the final bill that the homeowner never agreed to in writing. Or the reverse: the homeowner requests a change and expects it to be included in the original price when the contractor expects to be paid for it separately.

Change orders eliminate that ambiguity. When every change is documented with a revised price and both parties sign off, there are no surprises at the end of the project.

• Description of the Change: A clear written explanation of what is being added, removed, or modified from the original scope.

• Revised Pricing: The exact dollar amount being added to or subtracted from the original contract price.

• Timeline Impact: Whether the change affects the project completion date and by how many days.

• Signatures: Sign-off from both the homeowner and the contractor before any work related to the change begins.

• Reference to Original Contract: The change order should reference the original contract number or date so it is clearly linked to the right project.

Rarely, if the planning was thorough. The primary cause of change orders is insufficient planning before construction begins. When a project goes through a detailed feasibility assessment, a complete scope of work, and full design selections before construction starts, the number of surprises drops dramatically. At Phoenix Home Remodeling, our planning process is specifically designed to minimize change orders by resolving unknowns before demolition begins.

No. Frequent change orders are a sign of poor planning on the contractor's part, not just bad luck. If a contractor consistently discovers unexpected issues mid-project that require change orders, it means their pre-construction process is not thorough enough. A contractor who does deep planning upfront will rarely need to issue change orders after construction starts.

That is completely normal and your right as the homeowner. Just make sure any change you request, even a small one, is documented in a formal change order with a revised price before the work is done. This protects both you and the contractor and keeps the project finances clear throughout.

See also: Scope of Work, Planning and Design Agreement, Defined Scope Pricing, Construction Sequencing, Rendering (Remodeling)