Change Order

Definition

A change order (CO) is the contractual mechanism for modifying agreed scope after a contract has been executed. Change orders may be initiated by the homeowner (requesting an upgrade or revision), by the contractor (encountering unforeseen conditions such as hidden rot or undersized structure), or by a regulatory requirement discovered during permitting. Each change order describes the specific change, the resulting price adjustment, and any schedule impact. Change orders must be signed by both parties to be enforceable. Verbal change order agreements are a leading source of construction disputes and should never be accepted.

Frequently Asked Questions

What causes most change orders in a renovation project?

The most common causes are homeowner-initiated scope changes during construction, unforeseen conditions discovered during demolition (hidden rot, outdated or undersized wiring, corroded plumbing, inadequate structure), and incomplete design or selection decisions at contract signing. Thorough pre-construction planning, complete design, complete selections, and an accurate scope of work, substantially reduces change order frequency and the total financial exposure they represent.

Can a contractor add cost to the project through a change order without my approval?

How does Center Island Contracting handle change orders?

Why Change Order Matters

Change orders are the primary mechanism through which renovation costs exceed original estimates. A project that was poorly defined at the outset, or a homeowner who makes frequent scope changes during construction, will accumulate change orders that can significantly inflate total project cost. Minimizing change orders requires thorough pre-construction planning and completed material selections before construction begins. Conversely, when change orders are properly documented and signed, they protect both the homeowner and the contractor by creating a clear written record of every modification.

How Center Island Contracting Company Uses It

Center Island Contracting manages all changes through a formal written change order process tracked in the Buildertrend platform. No changes to scope, materials, or price are implemented without a signed change order, protecting both the homeowner and the company from misunderstandings about what was agreed, what was added, and what the final cost adjustment is.

Related Services

Related Terms

"Change Order"
Appears in These Categories

Project Management & Contracts