Change Orders: Why Projects Go Over Budget and How to Avoid It

What a change order actually is, which ones are avoidable, and how to handle the ones that are not.

Almost every remodel that goes over budget goes over through change orders. Understanding what they are and where they come from is the difference between a project that lands near its number and one that does not.

What a change order is

A documented change to the agreed scope, with its own price, approved before the work happens. It is not a contractor finding a way to charge more — it is the mechanism that protects both sides when the job changes.

Without change orders you get one of two bad outcomes: work done that was never agreed and then billed, or work skipped because it was not in the original scope and nobody discussed it.

The two kinds

1. Changes you asked for

You decided to move a wall, upgrade the tile, add a light, change the layout. These are entirely avoidable and they are the larger source of overruns in most projects.

Every one of them is legitimate — it is your house. The trap is that they feel small individually and add up substantially, and mid-project changes cost more than the same decision made at planning stage because work already done may have to be undone.

2. Things found behind the wall

Unavoidable, and every remodel has some. Common in Central Florida homes:

• Water damage or rot that was not visible
• Termite or pest damage in framing
• Plumbing or electrical that is not to current standards, or that was modified by a previous owner
• A wall that turns out to be structural
• Subfloor damage under a bathroom or near an exterior door
• Mold behind a wet wall
• Ductwork or plumbing routed where the plan assumed it would not be

These have to be dealt with. Closing a wall over rot or a code issue is not an option, and any contractor who offers to is not one to hire.

How to minimize the avoidable ones

1. Decide everything before work starts. Tile, fixtures, paint colors, hardware, layout, lighting positions. Every decision left open becomes a decision made under time pressure mid-project, and those cost more and satisfy less.
2. Buy or specify the materials early. Lead times cause more schedule problems than labor does, and discovering a backorder mid-project forces a substitution.
3. Walk the space and mark it out. Tape the layout on the floor, mark outlet and fixture positions on the wall. It costs nothing and it catches things drawings do not.
4. Ask what is likely to be found. An experienced contractor can tell you what a house of this age in this area usually hides, and you can budget for it.
5. Read the scope carefully and specifically look for what is not in it. Our guide on getting an accurate estimate covers this.

Build in contingency

Set aside a contingency for the unavoidable discoveries. On an older home, more.

The homeowners who have a bad experience are almost always the ones who budgeted to the exact quote with nothing spare. Then the first genuine discovery becomes a crisis rather than a manageable event.

How a change order should be handled

• Stop and communicate before doing extra work, not after.
• In writing, describing what changed, why, and what it costs.
• Approved by you before it proceeds.
• With a schedule impact noted, since a change frequently affects the timeline as much as the price.
• Photographed, when it is a discovery. You should be able to see what was found.

A contractor who does extra work and presents the bill afterward has taken a decision that was yours to make. That is a real warning sign.

Questions to ask before signing

• How are change orders documented and priced?
• What happens if something is found once the wall is open — do you stop and call me?
• What is explicitly excluded from this scope?
• What do you expect might be found in a house like this?
• What is the allowance for fixtures and finishes, and what happens if I choose above it?

Our guide on contractor red flags covers the wider vetting picture.

Allowances

Where materials have not been selected, a contract may include an allowance — a budgeted figure for tile, fixtures or countertops. Choosing above it means a change order.

The clearest way to avoid surprises is to select the actual materials before signing so the number is real rather than a placeholder.

Inventive Home Improvement works from written, itemized scopes and gets approval before anything changes. We serve Lakeland and Polk County — call (863) 633-5499.

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