What Is a Change Order in a Remodel? How It Should Work

A change order is a written, signed note that adds to or changes the work after your remodel contract is set. It says what the new work is and what it costs. You should see it, understand it and sign it before any of that extra work starts. That way the final bill matches what you agreed to.

At JT's Painting & Renovations, based in Foley and serving Wentzville, every bit of extra work goes on a change order first. You can see how we run a full job on our general contractor page.

What is a change order?

A change order is a short add-on to your contract for work that was not in the first plan. It lists the new work, the price and any change to the finish date. Both you and the contractor sign it.

Plans change once a remodel starts. You might decide to add a room to the job. You might pick a different tile. Or the crew might open a wall and find something that has to be fixed. A change order puts each of those in writing.

How does a change order fit with the estimate and contract?

It is the last piece of a simple paper trail: estimate, contract, then change orders for anything extra. Josh Tillman, who owns JT's, laid out the steps on the "Your Little Castle Show" on ABC:

1. We come out and give you an estimate.
2. If you move forward, the estimate becomes the contract.
3. The contract becomes the invoice.
4. Anything beyond that work goes on a change order.

In Josh's words:

"Anything extra beyond that scope of work will be on a change order or additional work order... all of that will have to have a signature and explained to you in detail before any extra or additional work will occur."

Should a contractor start extra work before you sign?

No. Extra work should wait until you have signed the change order. If work starts first, you find out the price later. That is how people end up with a big bill they did not see coming.

A good change order is explained to you in plain words. You should know what is being done, why, and what it costs before you sign.

What should a change order include?

A change order should be clear enough that you could hand it to a stranger and they would know what changed. Here is what to look for:

Why does a written contract matter in the first place?

A change order only works if the first contract is clear. The Federal Trade Commission says to ask for a written contract even if your state does not require one. The FTC also says any promises made out loud about the work and the cost should be written into the contract, and all blank spaces should be filled in.

The FTC gives two more tips on payment:

• Don't pay the full amount for the project up front.
• Don't make the final payment until the work is done and you are happy with it.

How do you know the final bill is right?

Ask to see the receipts. At the end of a job, Josh hands customers the receipts so they can check them against the invoice. We don't mark up materials. What we pay is what you pay.

"Here's the receipts. Go through it. It matches the number I have on the invoice."

With a clear contract, signed change orders and receipts, you can check every dollar on the final bill.

FAQ

Is a change order a bad sign? No. Plans can change once work starts. What matters is that each one is written down and signed before the work happens.

Can I say no to a change order? Yes. A change order is a choice. If you don't sign it, the extra work does not get done.

Does a change order always cost more? Not always. A change order can also take work out of the job or swap one material for another.

What if a contractor asks you to OK extra work out loud? Ask for it in writing first. A short signed note protects you and the contractor.

Get a clear estimate for your remodel

Want a remodel with no surprise bills? See our general contractor service, or ask for a free estimate. You can also call Josh at (912) 432-0218. For tips on picking the right team, read how to choose a general contractor.