Contractor Change Orders: When to Approve and When to Push Back
Change orders are how contractors adjust the scope and price of a job after work has started. Some are legitimate. Some are contractors testing whether you'll pay for things that should have been included in the original bid.
Here's how to tell the difference.
What Is a Change Order?
A change order is a written modification to the original contract. It changes the scope, price, or timeline.
Example of a legitimate change order:
"During demo, we discovered the subfloor is rotted and needs replacement. Original bid did not include subfloor work because it wasn't visible during the estimate. Additional cost: $1,800 for materials and labor."
Example of a questionable change order:
"Haul-away and disposal of demo debris: $2,200."
If haul-away wasn't mentioned in the original contract, this might be legitimate. But if the original contract said "full kitchen remodel" and you assumed demo debris removal was included, the contractor is exploiting ambiguity.
Legitimate Change Orders
These happen when:
-
Hidden conditions are discovered during work
- Rot behind walls
- Outdated wiring that needs upgrading to meet code
- Foundation issues discovered during excavation
-
You request changes to the original plan
- Upgrading from standard to premium materials
- Adding work that wasn't in the original scope
- Changing dimensions or layout mid-project
-
Code requirements change or weren't anticipated
- Inspector requires additional work to meet current code
- Permit conditions require unexpected modifications
Rule: If it's genuinely unforeseen and couldn't have been included in the original estimate, it's probably legitimate.
Questionable Change Orders
These are contractors trying to extract more money for things that should have been included in the original bid:
1. Basic prep work that should have been obvious
Bad change order: "Wall patching and surface prep before painting: $600."
If the contractor bid on painting, prep is included. That's not a change order. That's the contractor trying to charge twice for the same job.
2. Cleanup and haul-away
Bad change order: "Removal of construction debris: $1,500."
Unless your contract explicitly stated you were responsible for debris removal, cleanup is part of the job.
3. "Unforeseen" issues that were visible during the estimate
Bad change order: "Electrical panel upgrade required: $3,200. This was not visible during the initial estimate."
If the panel was accessible during the estimate and the contractor didn't mention it, that's on them. A competent contractor checks the panel before bidding electrical work.
4. Vague or inflated pricing
Bad change order: "Additional framing materials and labor: $4,800."
No breakdown. No explanation of what changed or why. This is a contractor testing whether you'll sign without asking questions.
Rule: If it was visible, accessible, or predictable during the original estimate, it shouldn't be a change order.
How to Handle Change Orders
Before You Approve
- Ask why it wasn't included in the original bid
If the answer is vague ("it's just how these things go"), push back. If the answer is specific ("we discovered rot when we pulled up the floor, here's a photo"), it's probably legitimate.
- Get a detailed breakdown
Don't approve a change order that just says "additional materials: $3,000." Ask for:
- What materials?
- How many?
- What labor is required?
- How much time will it add to the schedule?
- Get a second opinion if the number feels high
For large change orders ($2,000+), get a competing quote. If your contractor is charging $4,500 to replace a subfloor and another contractor quotes $2,200 for the same work, you have leverage to negotiate.
- Check if it's covered by contingency
If your original contract included a contingency line (10-15% buffer for unforeseen issues), use that before approving additional costs.
What to Say When Pushing Back
"I need to understand why this wasn't included in the original estimate. Can you walk me through what changed?"
If the contractor gets defensive, that's a red flag. Legitimate contractors explain their change orders because they want you to understand what you're paying for.
When to Approve Immediately
Some change orders are no-brainers:
- Structural issues discovered during demo (rotted joists, cracked foundation)
- Code violations that must be fixed to pass inspection
- Safety hazards (outdated wiring, mold, asbestos)
If delaying the decision will delay the project or create bigger problems, approve it. Just make sure the pricing is reasonable first.
How to Prevent Change Order Abuse
1. Get everything in writing upfront
Your contract should spell out:
- What's included
- What's excluded
- Who handles permits, cleanup, haul-away
- How change orders will be handled
2. Require itemized change orders
Include a clause in your contract:
"Any change order must include a detailed breakdown of materials, labor, and timeline impact. Verbal change orders are not valid."
3. Set a change order approval threshold
For small changes ($200 or less), allow the contractor to proceed without approval. For anything above that, require written approval before work begins.
This prevents surprise bills and gives you time to evaluate whether the change is legitimate.
4. Build in contingency
If your project has a high risk of unforeseen issues (old house, major renovation, structural work), include a 10-15% contingency in the budget.
This gives you a buffer for legitimate change orders without breaking your budget.
Red Flags That Mean It's Time to Walk Away
If your contractor is hitting you with multiple questionable change orders, you have a bigger problem.
Walk away if:
- The contractor is adding 20%+ to the original bid through change orders for "unforeseen" work that should have been obvious
- Change orders are vague with no breakdown
- The contractor gets defensive when you ask questions
- You're being pressured to approve immediately ("if you don't approve this today, we can't finish on schedule")
At that point, the contractor is either incompetent (didn't estimate properly) or dishonest (testing how much extra they can charge).
When Change Orders Are a Good Sign
Here's the counterintuitive part: some change orders are actually a sign of a good contractor.
If your contractor discovers an issue, brings it to your attention before starting the fix, gives you photos and a detailed breakdown, and offers options (fix it now vs. fix it later, budget option vs. premium option), that's a contractor who respects you.
The bad contractors either hide the issue and do substandard work, or they fix it without telling you and surprise you with a bill at the end.
A good contractor communicates. They explain what changed, why it matters, and what it will cost before proceeding.
Bottom Line
Not every change order is a rip-off. But contractors know that most homeowners don't push back, so some test the waters with inflated or unnecessary charges.
Ask questions. Get breakdowns. Compare pricing. And if something feels off, trust your gut.
If you're staring at a change order and trying to figure out if it's legitimate, BidCheck can help. Upload the original bid and the change order, and we'll show you whether the pricing is in line with local benchmarks.