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BETTESWORTHConstruction

Construction Change Orders: What Homeowners Should Check Before Agreeing

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A construction change order is a written modification to the work, price, or schedule in your construction agreement. Before agreeing, compare it with your original contract and make sure the document clearly identifies the changed work, the net price adjustment, and any change to project dates. Whether a contractor may proceed or charge for a change without your approval depends on your contract, the circumstances, and applicable local law—not on one nationwide rule.

What is a change order?

A change order is a document that revises an existing construction agreement. It can add work, remove work, or change how work will be done. Depending on the change, the contract price may go up, go down, or stay the same; the schedule may also change.

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For a homeowner, the document is more than a record of a new price. It helps define what the contractor is now expected to do and what the parties have agreed about payment and timing. A vague note such as “upgrade kitchen” leaves room for disagreement over which materials, tasks, or finish details are included. A useful change order describes the work precisely enough to identify the revision and its effect on the existing agreement.

The AIA overview of construction change orders distinguishes an agreed change order from other ways a contract may handle changes. The right procedure for a particular home project comes from the signed contract and applicable law; an industry form or another project’s process does not automatically govern your job.

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Can a contractor charge more without my approval?

There is no single answer that applies to every homeowner and every project. Check the contract’s change, notice, payment, and authorization terms, as well as the rules where the work is being done. The available consumer guidance does not establish a nationwide rule that every added charge is invalid unless the homeowner signed a particular form.

Start by asking the contractor to identify the contract clause or other basis for the charge and to explain whether the work is new, was already included in the original scope, or is being treated as an urgent or otherwise separately authorized item. Ask for the proposal and supporting details in writing. If you dispute the charge, explain the specific point of disagreement and keep the response factual. Avoid assuming that a general statement such as “all extras need approval” or “the contractor can bill whatever was necessary” settles the issue.

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The Federal Trade Commission advises homeowners to read home-improvement agreements carefully and notes that contract requirements vary by state. Its home-improvement guidance recommends written estimates and checking a contractor’s license and insurance. For an answer about your legal rights, consult your contract and contact the appropriate state or local consumer agency; for a substantial dispute, consider getting advice from a qualified local attorney.

Do I have to sign a change order?

Whether your signature is required—and what your signature would mean—depends on the contract, the project’s facts, and local requirements. Do not treat a familiar form or another homeowner’s experience as a universal signature rule.

AIA’s G701-2017 instructions describe that document as a way to record a change after the owner and contractor, with the architect in concurrence, have agreed on the change, including adjustments to price and contract time. That arrangement is specific to that form and context; it is not a rule that every residential project has an architect or requires the same three signatures. The G701 instructions also say local laws and project requirements may affect use of the form.

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Before signing, read the change alongside the original agreement. Confirm that the document does not authorize additional work, payments, or schedule extensions beyond what you intend to accept. If you do not understand a clause, ask for an explanation or a revised document before signing. Keep a copy of the final version signed by the parties required under your contract.

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What should be included in a change order?

It should make the change and its consequences clear enough that you and the contractor can later tell what was authorized. The FTC says: “A written estimate should include a description of the work to be done, materials, completion date, and the price.” A change order should apply that same practical clarity to the revision being proposed.

  • Project and contract identification: Name the project and refer to the original contract so it is clear which agreement is being changed.
  • Changed scope: Describe the work being added, deleted, or revised, including relevant materials, quantities, locations, finish selections, and exclusions. Identify whether any attached drawing, specification, or other document is part of the change.
  • Price adjustment: State the increase, credit, or no-cost adjustment and how it affects the total contract amount. If the contract uses a guaranteed maximum price, identify the adjusted amount as applicable.
  • Schedule effect: State whether the change affects contract time, a milestone, or the expected completion date. If there is no schedule change, say so rather than leaving the point ambiguous.
  • Payment terms: Explain when the adjustment is due and how it fits the payment schedule in the original contract. Check that any deposit or progress-payment request is consistent with the agreement and local requirements.
  • Approvals: Include the signatures, written approvals, or other authorization the contract requires, with dates. Identify any approval still outstanding.
  • Supporting information: Attach relevant plans, specifications, selections, or a cost breakdown when needed to understand the scope and price.

AIA’s G701-2017 instructions call for recording the original contract amount, previously authorized changes, the increase or decrease, the adjusted contract sum or guaranteed maximum price, and the effect on contract time and substantial completion. The instructions also identify supporting drawings, specifications, or other documents as useful where appropriate. Those fields are a helpful documentation model, not proof that a proposed charge is allowed under every contract.

How should I review the price and schedule?

Review the change as a comparison with the original agreement, not as an isolated total. Ask what is changing, how the proposed adjustment was calculated, and what happens to the dates that matter to you.

  1. Locate the original scope. Compare the proposal with the signed contract, plans, specifications, allowances, and selections. Ask whether any portion of the proposed work was already included.
  2. Clarify the work. Request a specific description of additions, deletions, substitutions, quantities, and materials. Resolve conflicting or missing details before treating the proposal as final.
  3. Check the calculation. Ask for the cost components or other explanation required by your contract. Confirm how labor, materials, overhead, credits, or allowances are being handled under that agreement. AIA’s process guidance says review should consider whether the work is already required, whether quantities and costs are reasonable, and whether the pricing follows the contract.
  4. Trace the net price. Verify whether the stated adjustment is an increase, a credit, or no change, and how it changes the contract total. Make sure prior authorized changes are accounted for so you can reconcile the new total.
  5. Ask for the time impact. Have the contractor identify the days added or removed, any affected milestone, and the adjusted completion date. Ask what part of the changed work causes the schedule effect and whether other work can continue.
  6. Confirm before authorizing. Make sure the final document matches the explanation and states the approvals needed under your agreement. Keep the proposal, attachments, signed copy, and related messages together.

There is no general cost or delay percentage that can reliably predict what a change will add to a particular home project. The effect depends on the work, the contract, and project conditions; a written, itemized explanation is more useful than relying on a generic average.

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What is the difference between a change order and a construction change directive?

In the AIA contract-document framework, a change order records a change the parties have agreed on, while a construction change directive is a separate written instrument that can direct a change before price or time is fully settled. Which mechanism is available—and what effect it has—depends on the contract in use.

AIA’s G701 instructions say the form is for use after the owner and contractor, in concurrence with the architect, reach agreement on the change, including price and time adjustments. By contrast, AIA’s process explanation describes a construction change directive as a way to direct changed work when the parties have not yet resolved all adjustments. The sample AIA A104-2017 agreement illustrates one contract’s arrangement: a written change order signed by owner, contractor, and architect, or a written directive signed by owner and architect. That sample is an example of a particular form—not a universal homeowner rule.

AIA documents also distinguish minor changes that do not affect contract sum or time, which may use another instruction process under the relevant form. Do not assume a contractor can use that route for work that changes the price or schedule; check the actual agreement and the authority it gives each party.

Can I refuse a change order?

You can decline to agree to a proposed change, but the consequences of refusing it depend on what the contract requires and why the change is being proposed. A homeowner should not assume either that every change can be refused without consequence or that a contractor can compel every requested upgrade.

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If the change is optional, say clearly that you are not authorizing it and ask whether the original scope can proceed as agreed. If the contractor says the work is necessary because of an unexpected condition, safety issue, code concern, or other contract provision, ask for the reason and supporting information in writing. The next step may depend on the contract’s notice and dispute procedures, the project facts, and local law.

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Do not rely on silence as a clear rejection or approval. Send a dated written response stating what you accept, reject, or need clarified. If work is underway or the disagreement could affect safety, property, or a large sum, seek prompt local professional advice rather than letting an unresolved dispute drift.

Can a change order delay my project?

Yes. A change can alter the schedule if it adds work, changes sequencing, requires different materials, or otherwise affects the time allowed under the contract. The amount of delay cannot be determined from a change order’s label alone; ask for the specific schedule adjustment and the reason for it.

Ask the contractor to distinguish the time needed to perform the changed work from any wait for materials, approvals, or access. Request the revised milestone or completion date and ask whether unaffected work can continue while the issue is resolved. If a proposal says that the schedule changes but gives no amount or revised date, ask for that information before agreeing where possible.

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AIA’s G701 instructions include fields for the change in contract time and adjusted substantial-completion date. That supports documenting schedule effects explicitly, but it does not determine whether a particular extension is justified under your agreement.

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What should homeowners do before and after approval?

Before agreeing, gather the original contract and all related scope documents, then compare the proposed revision against them. Ask for more than a one-line description or an unexplained total. The FTC recommends reading a home-improvement contract carefully, getting multiple estimates, and checking contractor license and insurance; it also directs consumers to state or local agencies because requirements vary by state.

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After approval, keep the signed change order with the original agreement, estimates, drawings, receipts, approvals, and messages. Update your own record of the contract total, payments, and agreed schedule so you can compare later invoices and progress against the authorized changes. If the final work differs from the written scope, document the difference promptly and raise it in writing under the contract’s notice process.

For projects paid for through a public program, check the program’s rules separately from the private contract. For example, the Georgia Department of Community Affairs change-order FAQ describes a program-specific review and approval process; it says an optional homeowner upgrade may need to be paid by the homeowner. Those details apply to that program context, not automatically to privately funded renovations or projects in other states.

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What if the contractor wants work to start before the price is settled?

Pause and identify the written procedure in your contract before treating an unresolved proposal as approved. Some AIA forms provide for a construction change directive when work must be directed before final price or time agreement, but that is a contract-specific mechanism and should not be assumed to apply to every residential job.

Ask the contractor to state in writing who is authorizing the work, what scope is being directed, how cost and time will be determined, and how any disagreement will be resolved under the contract. Do not sign a document you do not understand or treat a directive as proof that the eventual amount is automatically acceptable. If a delay in action could create a safety issue or serious property damage, address the immediate risk while promptly obtaining advice about the contract and local requirements.

Bottom line for reviewing a proposed change

A change order should make the revised work, price, timing, and authorization clear. Compare it with the original contract, resolve unclear scope or calculations, and keep the final written record. Your specific rights and obligations depend on the signed agreement, project circumstances, and local law; if a significant charge or dispute is involved, get advice specific to your location and contract.

Frequently Asked Questions

Can I approve a change order by text or email?

It depends on what your contract says about written notices, electronic signatures, and authorization. If you communicate by text or email, identify the exact version of the proposal and save the full exchange; ask for a signed or otherwise contract-compliant final document if the agreement requires one.

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Does a change order replace my original construction contract?

A change order is generally used to revise specified parts of an existing agreement, rather than to restate every original term. Read it together with the contract and check for language that changes or supersedes other provisions; ask for clarification if the relationship between the documents is unclear.

Should I get a second estimate for a change order?

A second written estimate can help you judge a substantial or unclear proposal, especially when the contract does not prescribe a pricing method. Make sure the estimates describe the same scope and materials so the comparison is meaningful, and consider whether another contractor can evaluate the work without disrupting the project.

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