Contractor Change Orders: What Homeowners Should Check Before Approving One
A contractor change order can add hundreds or thousands of dollars to a renovation very quickly.
Some change orders are completely legitimate. Hidden damage may be discovered, a homeowner may request additional work, or materials and design details may change.
The important question is not simply “Why does this cost more?”
The better question is:
“Is this actually additional work, and does the proposed cost make sense?”
Before approving a change order, compare it carefully against your original contract, quote, drawings and agreed scope of work.
What Is a Construction Change Order?
A change order documents a change to the work originally agreed upon between the homeowner and contractor.
It may change:
- the scope of work
- the project price
- materials or products
- quantities
- subcontractor work
- the construction schedule
- the completion date
The Canadian Home Builders’ Association recommends documenting changes in writing and clearly identifying the resulting price and schedule changes.
1. Compare It With the Original Scope
Before paying for an “extra,” confirm that the work was not already included.
Look at:
- the original quotation
- signed contract
- specifications
- drawings
- allowances
- exclusions
- emails discussing the work
- previous change orders
A vague original scope can create disagreements later because the contractor and homeowner may have understood the work differently.
If the original documents already describe the work being charged as an extra, ask the contractor to explain exactly why it is now considered additional.
2. Ask Why the Change Is Required
There should be a clear reason.
Common legitimate reasons include:
- concealed rot or water damage
- unexpected structural conditions
- electrical or plumbing problems discovered after demolition
- homeowner-requested upgrades
- design revisions
- material substitutions
- increased or decreased quantities
A good change order should make the reason understandable without requiring you to guess what changed.
3. Check the Price Breakdown
Do not focus only on the total.
Ask what the price includes.
Depending on the work, that may include:
- labour
- materials
- subcontractors
- equipment
- delivery
- disposal
- overhead and markup
- applicable taxes
A detailed breakdown makes it much easier to compare the additional charge with the actual additional work.
4. Look for Credits as Well as Extras
Change orders do not always increase the price.
If work or materials from the original contract are being removed, there may also be a credit.
For example, if a specified product is deleted and replaced with another option, ask:
“Where is the credit for the original item?”
The change order should reflect both additions and deletions where applicable.
5. Check the Allowances
Allowances are frequently misunderstood.
An allowance is typically an amount carried in the contract for an item that has not yet been completely selected or priced.
Before accepting an extra charge related to an allowance, determine:
- what amount was originally included
- what the selected item actually costs
- whether labour was already included
- whether taxes, delivery or markup were included in the original allowance
- what portion is genuinely additional
An allowance overrun is different from completely new work.
6. Ask About the Schedule
A price increase is only part of a change order.
Ask whether the change affects:
- material lead times
- inspections
- subcontractor scheduling
- sequencing
- substantial completion
- final completion
A relatively small change can sometimes have a larger schedule impact than expected.
That impact should be understood before the change is approved.
7. Confirm Whether Other Professionals Are Required
Some changes cannot simply be approved between the homeowner and contractor.
Depending on the work, the change may require involvement from:
- an engineer
- architect
- designer
- building official
- electrical contractor
- plumbing contractor
- other qualified professionals
Do not assume a contractor change order replaces required permits, engineering or professional approvals.
8. Avoid Verbal Change Orders
A quick conversation on site can easily become:
“I thought that was included.”
versus:
“You asked us to add it.”
Written documentation protects both sides.
The scope, price and schedule impact should be clear before substantial additional work begins whenever reasonably possible.
Change Order Red Flags
Take a closer look when you see:
- a large lump-sum charge with little explanation
- work that appears to have been included in the original scope
- pressure to approve immediately without documentation
- significant work completed before the cost was discussed
- repeated charges for predictable items
- deleted work with no corresponding credit
- no explanation of schedule impact
- verbal approvals being treated as open-ended authorization
- descriptions such as “extra work” without identifying the actual work
None of these automatically proves the charge is improper.
They are reasons to ask more questions.
Hidden Conditions Are Different
Renovations involve uncertainty.
Once walls, floors and ceilings are opened, conditions may be discovered that could not reasonably have been seen during the original estimate.
Examples may include:
- rot
- damaged framing
- obsolete wiring
- leaking plumbing
- hidden structural alterations
- unsuitable substrates
- undocumented previous renovations
These conditions can legitimately create additional costs.
The homeowner should still receive a clear explanation of:
- what was discovered
- why corrective work is required
- what work is being proposed
- what it will cost
- how it affects the schedule
A Note for British Columbia Homeowners
BC consumer-contract requirements changed on August 1, 2026.
Consumer Protection BC states that the updated rules include additional requirements for important contract information to be provided before consumers enter certain contracts, including information related to cancellation, refunds, exchanges and other contractual terms. Which rules apply depends on the type of contract and how it was entered into.
This page provides practical construction guidance only and is not legal advice.
Before You Approve a Change Order
Run through this checklist:
- What exactly changed?
- Who requested the change?
- Was the work already included?
- What is the labour cost?
- What is the material cost?
- Are subcontractor costs included?
- Is markup identified?
- Are there credits for deleted work?
- Does the change affect the schedule?
- Are permits, inspections or professional approvals required?
- Is everything documented in writing?
If you cannot answer those questions confidently, get clarification before approving the change.
Have a Change Order You’re Unsure About?
An extra few hundred dollars may be easy to understand.
A large or complicated change order deserves a closer look.
Bring your original quote or contract, the proposed change order and your questions to a 30-minute homeowner construction consultation.
With 30+ years of hands-on construction and contracting experience, I can help you identify the questions worth asking before you approve additional work.
BOOK A 30-MINUTE HOMEOWNER CONSULTATION (CA$75)
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