How Change Orders Work During a Home Remodel

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How Change Orders Work in a Home Remodel

Most homeowners hear “change order” for the first time mid-project, usually right after a contractor opens a wall and finds something the original plan did not account for. A change order is a written amendment to your contract: it documents a change in scope, cost or schedule, and both you and the builder sign it before the work happens. Handled well, it protects your budget. Handled badly, it is how a fixed-price remodel quietly turns into a moving target.

This guide covers what triggers a change order on a Twin Cities remodel, what a legitimate one should include, and how a firm-budget, design-build process limits how many you ever see.

What actually triggers a change order?

A change order shows up for one of three reasons: a hidden condition behind a wall or floor that nobody could see at the time of bid (knob-and-tube wiring, a rotted sill plate, undersized ductwork), a homeowner-requested upgrade mid-project (different tile, a bigger island, a moved doorway), or a permitting or code requirement that surfaces once the city reviews the plans. The first category is the most common in older Twin Cities homes. A 1920s Minneapolis bungalow or a 1960s Edina rambler being opened up for a kitchen or main level remodel will often reveal plumbing, electrical or structural conditions that were not visible in a walkthrough, because they were not visible to anyone until the drywall came down.

Signed construction plans and contract documents for a New Spaces remodel project
A signed set of construction plans. Any change order should reference the specific page or detail it amends.

What should be on a legitimate change order?

A change order you sign should answer four questions in writing before any extra work starts: what is changing, why it is changing, what it costs, and how it affects your completion date. Vague verbal approvals, “yeah go ahead and fix that”, are how costs get disputed later. A proper change order is a short document, not a renegotiation of the whole contract, and it should reference the original scope it is amending.

What a change order should include Why it matters
Description of the specific change Prevents scope creep from one change becoming several
Reason for the change (hidden condition, homeowner request, code requirement) Shows whether the cost is the contractor’s responsibility or yours
Itemized cost impact, materials and labor Lets you compare it to the original line item it replaces
Schedule impact, in days Protects you from an open-ended delay with no new date attached
Signatures from both parties before work proceeds Makes the change part of the contract, not a verbal promise

How many change orders is normal?

On a well-scoped whole-home or kitchen remodel with a thorough pre-construction design phase, most projects see zero to two change orders, usually tied to a hidden condition rather than a homeowner decision. A project that generates five or six change orders is almost always a sign the original scope was rushed, under-investigated, or priced to win the bid rather than matched to the real condition of the house. That is the gap a firm, fixed-price process is built to close: the more time spent in design and discovery before a shovel goes in the ground, the fewer surprises there are to change-order later.

How does a design-build process reduce change orders?

New Spaces has over 40 years of experience building a Needs, Wants and Wishes discovery phase and a firm-budget commitment into every project before construction begins, specifically to pull these decisions forward into design, where they are cheaper and easier to solve. Opening up the house on paper first, through detailed design documents and a thorough walkthrough of mechanicals, plumbing and structure, catches far more of the hidden-condition category before a contract is signed than a typical bid-and-build process does. That does not make change orders disappear entirely; no contractor can see inside a wall before it is opened. It does mean the homeowner-requested category, the most avoidable one, is minimized by finalizing selections and layout decisions before construction instead of during it. This process has been used on projects across Edina, Eden Prairie, Plymouth and Medina, Minnesota, and is detailed further on the project gallery.

What should you ask a remodeler before you sign?

Before signing any remodeling contract, ask how the contractor handles a hidden condition once it is found, whether a change order requires your written sign-off before work proceeds, how change order costs are calculated (time and materials versus a flat markup), and how many change orders their average project generates. A contractor who cannot answer that last question with a real number has not been tracking it, which is itself worth knowing before you sign. If a remodeler also offers a basement remodeling or whole-home scope, ask the same question about their larger projects specifically, since that is where hidden conditions compound.

FAQ

Is a change order the same as a cost overrun?

No. A cost overrun implies a contractor exceeded the budget without telling you. A change order is the documentation and approval step that should happen before any added cost is incurred, which is what keeps a true change from becoming an undisclosed overrun.

Can I say no to a change order?

Yes, for anything in the homeowner-requested category. You can decline an upgrade or a scope addition and keep the original plan. A change order tied to a code requirement or a safety issue, like replacing wiring that does not meet current code once a wall is open, is typically not optional if you want the project signed off by the city.

Does a change order always cost more?

Usually, but not always. A change order can also remove scope and reduce the contract price, for example if a homeowner decides mid-project to keep an existing vanity instead of replacing it.

How long does a change order take to approve?

On a well-run project, a change order tied to a hidden condition should be priced and presented within a few days of discovery, not weeks, so the schedule impact stays small. Ask how a remodeler handles this during your initial interviews.

Working with a Twin Cities remodeler who treats change orders as a documented, signed-off process rather than a verbal adjustment is one of the clearest signs of how the rest of the project will be run. As the National Association of the Remodeling Industry (NARI) notes in its guidance on managing change orders, a change-order clause written into the original contract, specifying how changes are priced and approved, is what gives both the homeowner and the contractor a clear process instead of a dispute once a hidden condition is found. See NARI: How to Manage Change Orders. New Spaces structures the pre-construction design phase around minimizing change orders before they start, with a firm budget that does not grow once the contract is signed. Contact New Spaces or call (952) 898-5300 to start a project with a firm-budget process from day one.