Change Orders 101: What You Need to Know Before Starting a Remodel

Are you starting a home renovation and worried about unexpected changes? Dealing with change orders can be confusing and costly. Knowing about the different types of changes and how to handle them is important for a successful remodel.

As experienced remodelers, we've worked on many projects with change orders and know they can be a stress point during the project. With over 15 years of being in the business of remodeling, we've learned great ways to keep remodeling projects on track while handling change orders that arise.

In this article, we'll cover the basics of change orders, explore the various types, and give you several best practices for success:

What Are Change Orders and Why Are They Important?

Change orders are adjustments or additions made to the original project plan during a remodeling project. They allow for project pivots when unexpected issues arise, home conditions are not as expected, or you change your mind after the design is finalized.

Change orders help ensure that the project can adapt to new circumstances with the necessary adjustments documented and agreed upon by all parties involved. Ultimately, change orders prevent misunderstandings, keep the project on track, and ensure all details are well organized.

How are Change Orders Initiated and Implemented?

1. Contractor-Generated Change Orders: Uncovering the Unexpected

A common reason for change orders is finding unexpected issues while remodeling. Discovering mold, poor framing structures during demolition, or foundation issues are a few examples.

While everyone involved in the project would prefer that these unexpected issues stay at bay, remodeling is messy. Because building codes and the quality of workmanship or materials have changed drastically over the years, you will find issues within your home. 

Through years of experience, our team can anticipate many issues based on in-home consultations, kick-off meetings, trade walks, and the age of the home. However, even with years of experience and knowledge, every contractor runs into unforeseen issues!

Also, problems like bad joists or old wiring might only appear once work starts. These existing issues can affect the project's time and cost, so checking everything well before starting the remodel is crucial.

Here is how a contractor-generated change order affects your remodel:

• Can impact the budget, leading to unexpected costs for the homeowner.
• This increases the project timeline and may lead to delays as extra work is required.
• Effective communication between contractor and homeowner is required to ensure understanding and approval.

2. Client-Requested Change Orders: Embracing New Ideas

Sometimes, during the remodel, you may want to change the project scope based on new ideas, preferences, or problems. Change orders allow you to customize the project after the design is finalized while keeping everyone on the same page. Before deciding to make a change, consider the potential impact this will have on your project timeline and budget.

While change orders can always be created, the more adjustments made to a project after the design has been completed, the greater the potential for errors and increased cost or timeline. We recommend investing extra time during the design phase to finalize decisions before proceeding to construction. Making changes while construction is underway is never ideal.

3. Supplier Changes: Adapting to Material Modifications

Changes in supplier availability or product specifications can also trigger change orders. For example, if a material you've selected becomes unavailable and goes on backorder, selecting an alternative option might be the optimal solution.

While contractors and suppliers, like Trex and Dura Supreme, work together to reduce interruptions, this issue will occasionally arise.

The best way to combat supplier change orders are:

• Select a material or product that is immediately available.
• Understand your contractor's material ordering process. At Custom Built, we order materials within a week of the final design approval. Ordering materials quickly minimizes the risk of a product going on backorder or becoming unavailable.

4. Trade Partner Suggestions: Addressing Expert Recommendations

Trade partners (electricians or plumbers) might notice a problem or offer an idea during construction. If you are working with a design-build company, it’s important that they are involved to confirm the suggestion. Otherwise, we recommend utilizing the trade partner's suggestion on your project.

5 Best Practices for Managing Change Orders

Effective communication and proactive planning are key to managing change orders. Here are some best practices to consider:

1. Clear Communication: Maintain transparent communication between all parties involved in the project. This includes homeowners, contractors, and trade partners.
2. Thorough Documentation: Document all change orders in writing. These details include the proposed changes, associated costs, and your approval signatures.
3. Proactive Planning: Expect changes and use contingency plans in the project timeline and budget.
4. Timely Resolution: Address change orders to prevent delays and cut disruptions to the project schedule.
5. Collaborative Decision-Making: Involve homeowners in decision-making for change orders. This ensures that any modifications align with their goals and preferences.

Next Steps to Remodeling Your Home

If you've been grappling with the complexities of managing change orders during your home remodel, you're not alone. These unexpected twists, whether stemming from hidden discoveries or revisions, can disrupt your renovation plans and add stress to the process.

Throughout this article, you've gained valuable insights into the different types of change orders and how they can impact your remodeling project.

At Custom Built, we understand the importance of smooth and efficient remodeling processes. With our 15+ years of expertise in the industry, we've helped thousands of homeowners navigate change orders and ensure successful outcomes for their projects.

Ready to embark on your remodeling journey with confidence? Contact our team of experienced professionals today to discuss your project goals and discover how we can help you achieve the home of your dreams.

Now that you know more about change orders, let’s take a look at how to budget for your build, how a design-build firm’s communication style benefits your project, and how to vet your remodeling contractors:

• How to Budget for Your Remodel - Ready to start budgeting for your project? Discover how to approach this task via our informative article.
• 7 Ways Design-Build Firms' Communication Style Benefits Home Remodels - Discover how design-build firms’ communication style can promote the success of your remodeling project.
• Top 8 Questions to Ask Before Hiring a Remodeling Contractor - A list of essential questions to ask your prospective remodeling contractor before hiring them for your project; with additional questions included in each section.