Change Orders
There are a few key reasons change orders can arise during a construction project:
1. Unforeseen Conditions
Sometimes, issues hidden behind walls, underground, or within existing structures aren’t discovered until work begins. Even with detailed plans, surprises can lead to necessary changes.
A good general contractor will proactively review potential areas where unforeseen conditions could occur or where it’s not possible to confidently price the work upfront. As the homeowner, it’s your responsibility to evaluate these risks and decide if you’re comfortable with the financial implications of a worst-case scenario.
2. Owner-Initiated Changes
Homeowners or developers may choose to upgrade materials, adjust layouts, or add features after work has already started—resulting in extra costs and time. These changes can increase the project’s scope and often extend its duration.
Many clients don’t realize how seemingly small changes can have major cost impacts. For example:
Imagine deciding to add an electrical outlet near the toilet for a bidet or electric toilet. If this request is made early, the cost might be a few hundred dollars. But if drywall and paint are already finished—or if the nearest circuit is fully loaded—the cost could jump into the thousands due to the need for new electrical runs, patching, and repainting.
3. Incomplete or Inaccurate Plans
If the construction drawings or specifications are missing details or contain errors, contractors may issue change orders to correct or complete the work.
A qualified contractor will submit RFIs (Requests for Information) or ask clarifying questions during bidding to resolve any unclear parts of the plans. But no contractor, architect, or engineer is perfect. If the architect or structural engineer left critical details out of the plans, and resolving those gaps adds work or materials, it’s not the contractor’s responsibility to cover those added costs.
These types of design omission change orders are often the most contentious. Designers or clients may argue that a contractor should have known or inferred what was intended, even if the plans weren’t explicit. Contractors, however, will argue it’s not their role to make design decisions—that’s why licensed architects and engineers are hired.
Each of these cases needs to be evaluated individually to determine who should bear the added costs (if anyone).
4. Bad Bidding Practices
A final common reason for change orders is bad bidding practices, and unfortunately, it’s one of the reasons general contractors sometimes get a bad reputation. Some contractors intentionally bid a project as low as possible just to be the “low bidder,” knowing that once they secure the contract, they can issue change orders under the guise of unforeseen conditions, owner changes, or incomplete plans.
This is why it’s so important to vet and interview your general contractor before hiring them. A reputable licensed general contractor will be upfront about potential change orders and cost impacts before the contract is signed, so everyone understands where additional costs might arise. Transparency at this stage helps avoid surprises and keeps the project relationship strong.
