What Is a Change Order — and How Do You Avoid Them?

What Is a Change Order — and How Do You Avoid Them?

Short answer

A change order is a written, priced modification to the contracted scope. They come from three sources: conditions discovered behind the walls, changes you request, and gaps in the original estimate. The first is largely unavoidable in an old house; the other two are almost entirely preventable with a complete scope and selections locked before demo.

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What a change order should look like

A proper change order is a document, not a conversation. It contains:

- **What's changing,** described specifically

- **Why** — discovered condition, owner request, or a correction

- **The cost,** broken out into labor and materials

- **The schedule impact,** in days

- **Signatures** — yours and the contractor's, dated

- **Issued before the work proceeds**

That last point is the one that matters most. "We'll settle up at the end" is how a $60,000 kitchen becomes $85,000 with no single moment where you agreed to it.

The three sources

1. Discovered conditions — mostly unavoidable

What was behind the wall, and nobody could see it.

In a pre-1960 Seattle house, the usual list:

- Knob-and-tube wiring where the drawings assumed modern cable

- Galvanized supply lines, partly occluded

- Rot at a tub surround or a window sill from a failed joint years ago

- Framing that isn't where or what it was assumed to be

- Undersized joists, or a previous owner's notching

- Asbestos in flooring, mastic or joint compound

- A prior repair done badly and covered over

- A drain line at the wrong slope

**How to handle it:** a named contingency line in the contract, 10–20% depending on the age of the house, held by you and released against documented discoveries. Then a discovery becomes a decision made in a day instead of a negotiation that stalls the job for a week.

**What good practice looks like:** photographs of the condition, a written description, a priced solution, and — where there's a choice — options at different price points.

2. Owner-requested changes — largely preventable

You decided you want the different tile. Or a pot filler. Or the island two feet longer.

These are legitimate and they're your right. They're also the largest source of avoidable cost, and they get much more expensive the later they happen:

**How to reduce them:**

- **Make every selection before demo.** All of it — cabinets, hardware, tile, grout color, fixtures, faucets, lighting, paint, flooring, door hardware.

- **Tape out the layout at full scale** on your actual floor. Stand in it. Open the doors. This catches spatial problems that a drawing doesn't.

- **Order long-lead items early** so a backorder doesn't force a substitution.

- **Set a rule for yourself:** no changes after rough-in unless something is genuinely wrong.

3. Estimating gaps — preventable by the contractor

Something that should have been in the original number wasn't. The contractor missed the panel upgrade the new appliances require, or didn't account for the subfloor, or set an allowance that never realistically covered the work.

**How to prevent it:**

- **Insist on an itemized estimate** with a written exclusions list. A thorough exclusions list means someone thought carefully.

- **Interrogate the allowances.** What specific product does this number buy? Show me one.

- **Ask directly:** "What do you expect to find in this house that isn't in this estimate?" A contractor who has worked in these neighborhoods will have an answer.

- **Be suspicious of the low bid.** When three bids on the same scope vary by 40%, the low one is usually missing scope, not offering a discount. You'll pay the difference later through change orders.

What a change order should cost

Contractors legitimately mark up change order work — it's out of sequence, it disrupts the schedule, and it often means re-mobilizing a trade. Common markup on change orders is similar to or slightly above the project's overall overhead and profit rate, typically 10–20%.

What to watch for:

- **Markup that exceeds the contract's stated O&P rate** with no explanation

- **Charges for work that was clearly in the original scope**

- **A change order for something the contractor caused**

- **Schedule impact charged as a separate item** on top of the work

Ask for labor and material to be broken out. "Add $4,200" is not a change order; it's a bill.

Your rights and the process

**You can say no.** A change order is an offer. If the price is unreasonable or you'd rather not do the work, you can decline — with the exception of code-required work that surfaces during construction, which generally has to be done.

**You can ask for options.** Discovered rot at a window doesn't have one solution at one price. Ask what the alternatives are.

**You can ask for a second opinion** on a large change order, particularly on a structural or mechanical item.

**You should never** accept a verbal change or authorize work with a text message. Get it written and signed. It protects both of you.

A realistic expectation

On a well-scoped project in a newer house, change orders commonly total 5–10% of contract value.

On a whole-home remodel or a gut of a pre-1960 Seattle house, 10–20% is normal — and most of it is discovered conditions rather than anyone's mistake.

Zero change orders on an old-house project usually means one of two things: an unusually thorough pre-construction investigation, or a contractor absorbing costs they'll recover somewhere less visible.

How Fortress Build & Finish handles change orders

Written, photographed, priced with labor and material broken out, with schedule impact stated and options offered where options exist — signed by you before the work proceeds. No exceptions, including for small items.

We also try to reduce them at the front end: we walk the crawlspace, the attic and the panel before pricing, we tell you what we expect to find in a house of this age and neighborhood, and we hold selections locked before demo. Most change orders on an old house are unavoidable. Most of the rest are a scoping failure, and that's ours to prevent.

Frequently asked questions

What is a change order in construction?

A written, priced modification to the contracted scope of work, signed by both parties before the additional work proceeds.

Are change orders normal?

Yes. 5–10% of contract value is typical on a well-scoped project in a newer house; 10–20% is normal on a whole-home remodel or a pre-1960 house.

Can I refuse a change order?

Generally yes — it's an offer, not an instruction. The exception is code-required work discovered during construction, which usually has to be done.

How do I avoid change orders?

Make every selection before demo, get an itemized estimate with a written exclusions list, interrogate the allowances, set a real contingency, and avoid changing your mind after rough-in.

What is a fair markup on a change order?

Commonly 10–20%, similar to or modestly above the project's overall overhead and profit rate. Ask for labor and material broken out rather than accepting a single number.

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