If you’ve ever hired a contractor, you probably know the phrase “change order costs.” It’s the polite way of saying, “Something unexpected came up, so your price just went up.” I’ve been burned by this more than once, and I’m here to help you avoid the same pain. Change order costs are additional charges that pop up after a project starts, often when the scope of work changes or hidden problems are discovered. They’re not always your fault, but they can wreck a budget if you aren’t prepared.
I’m Sam Mercer. I’ve renovated three houses over eight years, and I’ve dealt with my share of contractor surprises. This article will break down exactly what change order costs are, why they happen, and—most importantly—how to keep them from crushing your wallet.
What Are Change Order Costs and Why Do They Happen?
Simply put, a change order is an amendment to the original contract. It changes the work, the materials, or the timeline, and it almost always comes with extra cost. Change order costs are the price tag attached to that amendment.
Common reasons include:
- Hidden issues like mold, rot, or wiring problems behind walls
- The homeowner decides mid-project they want different materials or a different layout
- The contractor misjudged the scope and needs to charge more
- Unforeseen site conditions (e.g., concrete that’s thicker than expected)
In my first renovation, I asked the contractor to move a wall outlet just two feet. That simple request turned into a $350 change order because they had to pull new wire through finished drywall. I should have planned better, but I didn’t know any better.
How to Protect Yourself from Hidden Change Order Fees
The best way to avoid change order costs is to be proactive before you sign a contract. Here are five strategies I’ve learned the hard way.
1. Get Everything in Writing
Never rely on verbal agreements. Every change—no matter how small—should be documented in writing and signed by both parties. That includes the cost, the timeline impact, and the specific materials. Without a paper trail, you have no proof if the price suddenly doubles.
2. Include a Change Order Clause in the Contract
Your contract should spell out how change orders are handled. Look for language about:
- How much notice you’ll get before work changes
- A maximum percentage the contractor can add without your written approval
- A fixed fee for small changes (some contractors charge a flat $100–200 for any change order)
3. Set Aside a Contingency Fund
Even with the best planning, some change order costs are unavoidable. I recommend setting aside 10–20% of your total budget for surprises. On a $20,000 kitchen remodel, that’s $2,000–$4,000. If you don’t use it, you’ve got extra cash for upgrades.
4. Make Decisions Early
Indecision is expensive. Every time you change your mind after the work starts, you’re asking for a change order. Choose your finishes, fixtures, and layout before the first tool is unpacked. If you’re unsure, ask for options in the estimate—most contractors will gladly quote multiple scenarios upfront.
5. Ask About “Allowances”
Allowances are placeholder amounts in the contract for items like tile, cabinets, or fixtures that you’ll choose later. If you pick something pricier than the allowance, that difference becomes a change order cost. Make sure you understand the allowance amounts and choose within them to avoid extra charges.
Real-World Example: A Change Order That Cost Me $800
During a bathroom renovation, we discovered the subfloor was rotted near the toilet. The original contract didn’t cover subfloor replacement, so the contractor hit me with a change order. Total: $800 for materials and labor. Could I have avoided it? Maybe not entirely—hidden rot happens. But I could have negotiated a cap on how much they charge per square foot for unexpected repairs. Lesson learned.
Key Questions to Ask Before Signing a Contract
Before you hand over a deposit, ask your contractor these questions. The answers will tell you a lot about how they handle change order costs.
- “What’s your typical change order process?”
- “Do you charge a flat fee for small changes, or is it hourly?”
- “How do you handle hidden damage like rot or mold?”
- “Is there a maximum cost I can approve via email without a full written amendment?”
- “Can you give me a list of common change order costs on similar projects?”
FAQ: Change Order Costs
**Q: Can a contractor add a change order without my signature?**
A: Legally, they need your approval. But some contractors start work and bill later. Always require written approval before any change.
**Q: Are change order costs tax deductible?**
A: Not typically for owner-occupied homes. But if it’s a rental property or home office, talk to your tax professional.
**Q: What if I disagree with a change order cost?**
A: Stop work if necessary. Get competing quotes for the same work. Most contracts allow mediation or arbitration.
Final Thoughts
Change order costs don’t have to ruin your renovation. With a solid contract, a contingency fund, and a willingness to ask questions, you can keep surprises under control. I’ve been through it—don’t worry, it’s not expensive to protect yourself. Just a little planning upfront can save you hundreds or thousands later.
— Sam, an ordinary homeowner still struggling with the house.
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