Construction Change Orders: When to Approve vs Push Back

What Are Change Orders and Why Do They Matter?

So you’re halfway through your kitchen remodel, and your contractor walks in with a form that says you need to spend another $3,000. Sound familiar? That’s a change order, and honestly, it’s one of the most confusing parts of any construction project.

Change orders are basically written agreements to modify the original contract. They can add work, remove work, or change something that was already planned. And here’s the thing — they’re totally normal. But that doesn’t mean you should approve every single one without asking questions.

If you’re working with a general contractor near Murphys, CA, understanding change orders can save you thousands of dollars and a ton of headaches. Let’s break down when you should sign on the dotted line and when you should push back.

Legitimate Reasons for Change Orders

Not all change orders are bad news. Actually, some of them are completely unavoidable. Here’s when a change order is totally justified:

Hidden Conditions Nobody Could See

Your contractor opens up a wall and finds mold, outdated wiring, or rotted framing. Nobody has x-ray vision, so these surprises are legitimate reasons for extra work and cost. The best general contractor in Murphys will document these discoveries with photos before proceeding.

You Changed Your Mind

Be honest with yourself here. Did you decide mid-project that you want different cabinets? A bigger window? Heated floors you didn’t originally plan? That’s on you, and a change order is the right way to handle it.

Code Requirements Changed

Building codes get updated, and sometimes inspectors require work that wasn’t anticipated. According to the International Building Code standards, requirements can vary by jurisdiction and change over time.

Material Availability Issues

Sometimes the specific tile or fixture you picked becomes discontinued or backordered for months. Substitutions might cost more or less, and that gets documented through a change order.

Red Flags That Signal Problems

Now let’s talk about when you should be suspicious. Some change orders are signs of poor planning, estimation errors, or worse — someone trying to squeeze more money out of you.

Work That Should Have Been Included

If your contract says “complete bathroom remodel” and suddenly you’re getting a change order for installing the toilet, something’s wrong. Basic work that any reasonable person would expect should be in the original scope.

Vague Descriptions

A change order that says “additional work required — $2,500” without specifics is a red flag. You deserve itemized breakdowns of materials, labor hours, and exactly what’s being done.

Multiple Small Change Orders

Some contractors lowball initial bids, then nickel-and-dime you with constant small change orders. If you’re signing one every week, there’s a pattern worth questioning. Professionals like Rice Construction recommend getting detailed scopes upfront to avoid this scenario.

Pressure to Decide Immediately

Legitimate contractors give you time to review change orders. If someone’s pushing you to sign right now or work stops, that’s concerning behavior.

How to Evaluate Change Order Pricing

So you’ve got a change order that seems legitimate. But is the price fair? Here’s how to figure that out.

Standard Markup Percentages

Contractors typically mark up materials 15-25% and subcontractor work 10-20%. Overhead and profit usually add another 10-15%. So if raw materials cost $1,000, seeing $1,400-$1,500 on a change order is reasonable.

• Material markup: 15-25%
• Subcontractor markup: 10-20%
• Overhead and profit: 10-15%
• Total reasonable markup: 35-60% over base costs

Anything significantly higher deserves an explanation.

Compare to Original Pricing

Look back at your original contract. If similar work was priced at $50 per square foot, and now a change order shows $90 per square foot for the same type of work, ask why.

Get Clarification Before Signing

You have every right to ask questions. What materials exactly? How many labor hours? Why does this cost what it costs? A general contractor near Murphys, CA who’s honest will answer these questions without getting defensive.

Negotiating Without Burning Bridges

Here’s where it gets tricky. You need this contractor to finish your project. Starting a war over change orders isn’t smart. But you also shouldn’t just roll over.

Stay Professional and Calm

Don’t accuse anyone of trying to rip you off, even if you suspect it. Instead, ask questions. “Can you help me understand why this costs X?” goes further than “This is ridiculous.”

Request Alternatives

Sometimes there’s a cheaper way to achieve the same result. Ask if there are different materials or approaches that could reduce the cost.

Document Everything

Keep copies of all change orders, original contracts, and email communications. If disputes happen later, documentation is your best friend. You can find additional information about construction documentation best practices.

Know When to Compromise

If a $500 change order seems $100 too high, consider whether fighting over $100 is worth damaging the relationship with someone working on your home every day.

When Change Orders Signal Bigger Problems

Sometimes excessive change orders point to issues with how the project was planned from the start. The best general contractor in Murphys knows that accurate initial estimates prevent most change order conflicts.

Poor Initial Planning

If your contractor didn’t properly assess the job before bidding, you’ll pay for those mistakes through change orders. Experienced contractors spend significant time on pre-construction planning to avoid surprises.

Communication Breakdowns

Change orders sometimes happen because what you wanted wasn’t clearly communicated or understood. Regular check-ins throughout the project help prevent misunderstandings.

Scope Creep You Caused

Be honest — have you been adding things verbally without realizing they’d cost extra? Casual comments like “while you’re at it, could you also…” often turn into change orders.

Frequently Asked Questions

How many change orders are normal for a typical home renovation?

For a major renovation, 2-4 change orders is pretty normal. More than that, especially early in the project, might indicate poor initial planning or scope issues that need addressing.

Can I refuse to sign a change order?

Yes, but understand the consequences. Work related to that change order won’t proceed. If it’s blocking other critical work, you’ll need to find a resolution or the project could stall.

Should change order pricing match the original contract rates?

Generally, yes. Your original contract should specify markup percentages that apply to change orders. If it doesn’t, labor and material rates from the original bid should be used as benchmarks.

What if I discover my contractor did work without a change order?

This is problematic. Without a signed change order, you’re not technically obligated to pay for unauthorized work. However, if you benefited from the work and it was necessary, courts often side with reasonable compensation. Get everything in writing going forward.

Is there a way to limit change orders before the project starts?

Yes. Spend more time on the planning phase. Detailed specifications, thorough site assessments, and allowances for known variables all reduce change order frequency. A detailed contract protects both parties.

Change orders don’t have to be scary. With the right knowledge, you can evaluate each one fairly, negotiate when needed, and keep your project moving forward without getting taken advantage of. Just remember — documentation and communication are your best tools throughout any construction project.