How to Approve a Change Order

Your contractor pulls you aside mid-project and says, “Hey, we found an issue behind the wall. It’s not a big deal — just need to reroute this pipe. I’ll write up a change order. Can you sign it?”

What they’re really asking: can you approve an amendment to your contract that adds unexpected cost, time, or both?

A change order is a legal document. It modifies your original agreement. And once you sign it, you’re on the hook — for the price, the timeline change, and whatever scope it describes. Most homeowners sign these too fast because they feel pressured. The crew is standing there waiting. The drywall is open. It feels like you have ten seconds to decide.

You don’t. Slow down. Here’s exactly how to approve a change order the right way — without getting taken for a ride and without grinding your project to a halt. If your first reaction is panic, start with change orders without panic before you get into the approval checklist.

What you’re actually approving

Let’s be clear about what a change order does. It’s not a request for a quote. It’s not a heads-up that something changed. It’s a formal amendment to your construction contract.

When you sign a change order, you’re agreeing to:

• Additional work beyond what the original contract covered
• Additional cost for materials, labor, permits, or all three
• A schedule adjustment — sometimes explicitly stated, sometimes buried in fine print
• Scope changes that might affect other parts of the project you haven’t thought about

The key word there is “agreeing.” You have leverage before you sign. After you sign, you have a bill.

That’s not meant to scare you. It’s meant to remind you that this is a negotiation, not a demand. A change order is your contractor saying, “Something changed and we need to adjust the plan.” Your job is to make sure the adjustment is fair and complete before you say yes.

The three types of change orders

Not all change orders are the same. How you handle one depends on why it exists in the first place.

Unforeseen conditions

These are the most common. The wall opens up and there’s rot. The floor comes up and the subfloor is shot. The electrician opens a junction box and finds knob-and-tube wiring.

Nobody planned for this. Nobody could have planned for this — at least, not without tearing the whole house apart before starting. These change orders are almost always legitimate. Your scrutiny here is about price and completeness, not about whether the work is needed.

Owner changes

You changed your mind. You want the window three inches wider. You decided on a different tile that needs a different subfloor prep. You want an outlet added in a spot you forgot about.

These are your changes. You initiated them. That means you have more responsibility to understand the full cost impact. A small aesthetic change can trigger a cascade of hidden costs — moving a window affects the siding, the trim, the drywall, maybe even the structural header. Make sure the change order accounts for all of it.

Scope gaps

The original contract was vague. It said “install flooring” but didn’t specify who removes the old flooring. Or it said “paint living room” but didn’t say whether that includes primer, ceiling touch-ups, or trim.

These change orders are the most frustrating because they feel like a bait-and-switch. But they’re also the most negotiable. If the work clearly falls within the reasonable intent of the original contract, push back. A good contractor will eat small scope gaps rather than nickel-and-dime you. If the line between included work and extra work is fuzzy, compare the request against the exclusions in your contractor estimate before you approve it.

The checklist: what to check before you approve

Every change order deserves a systematic review. Here’s exactly what to look for. If you want a one-page companion while you read the actual paperwork, use the change order review checklist alongside this guide.

Is the description specific enough?

Vague descriptions are the number one cause of change order disputes. If the change order says “repair wall damage,” that could mean anything from patching a small hole to rebuilding an entire stud bay.

A good description tells you:

• Exactly what work is being done
• Why it’s necessary (unforeseen condition, owner change, or scope gap)
• What materials will be used — including brand, model, and grade
• How it connects to the existing work
• What’s NOT included — so you’re not surprised by a second change order

If you read the description and can’t picture what’s about to happen in your house, ask for more detail. A contractor who resists providing a clear description is a contractor you should question.

This is also where your original homeowner scope document matters. The clearer your starting scope is, the easier it is to tell whether the change order is truly new work or just work that should have been included from the beginning.

Is the price broken down?

A lump sum on a change order is a red flag. You need to see what you’re paying for.

Look for:

• Materials cost — what’s being bought and at what price
• Labor hours and rate — how many hours and what the crew rate is
• Subcontractor costs — if a specialist is being brought in
• Markup — how much the GC is adding on top of costs
• Permit fees — if the change requires a revised permit

A 20-30% markup on materials and subcontractor costs is standard in most markets. A 50% markup or higher without explanation deserves a conversation. If the change is tied to an allowance item, compare it against how allowances in contractor bids work so you know whether you are paying for a real upgrade or just a vague original number.

What’s the timeline impact?

Every change order affects the schedule. Even a small one. The contractor might tell you “no big deal, we’ll absorb it” — and sometimes that’s true. But get it in writing.

The change order should state:

• Whether the project completion date is changing
• How many days the change adds (if any)
• Whether the change affects other trades waiting to come in
• Whether there’s a sequencing issue (e.g., this change has to happen before the tile can go down)

If the contractor says there’s no schedule impact but the change requires new materials that take two weeks to order, that doesn’t add up. Ask. For bigger schedule decisions, use the same logic you would use when you compare contractor timelines before choosing a bid.

Does it affect other parts of the project?

A change order rarely exists in a vacuum. Moving a pipe affects the drywall. Adding a window affects the siding. Changing a light fixture location affects the ceiling finish.

Your contractor should spell out these ripple effects. If they don’t, ask about them before you sign. A change order that just says “relocate drain pipe” but doesn’t mention the drywall repair, the paint, or the tile work that might need adjusting is incomplete. The same habit helps prevent scope creep from turning one reasonable change into a string of paid extras.

Is the pricing consistent with your contract?

Check that the change order uses the same rates and pricing structure as your original contract. If your contract says labor is $75 per hour, the change order shouldn’t be charging $95. If materials are marked up at 15% in the contract, the change order should reflect the same percentage.

Inconsistencies here are either a mistake or a red flag. Either way, get clarity before signing.

How to handle change order negotiations

You have more power than you think in a change order conversation. Here’s how to use it without burning the relationship.

Ask for alternatives. Just because the contractor proposes one solution doesn’t mean it’s the only solution. Ask: “Is there a less expensive way to handle this?” or “Could we do a temporary fix now and a permanent fix later?” Sometimes there isn’t another option. But sometimes there is, and the contractor just didn’t think to offer it.

Get multiple bids on large changes. If a change order is over $1,000 or represents more than 5% of your total contract, it’s reasonable to ask for competitive pricing. Some contractors will push back on this, but it’s your money.

Understand the urgency. Some situations actually are emergencies — an active leak, a structural issue discovered mid-demo, an electrical hazard. In those cases, you might need to approve quickly to prevent further damage. But most change orders are not emergencies. If there’s no active damage happening, you have time to review, ask questions, and negotiate.

Don’t let sunk cost pressure you. It’s tempting to just sign because the crew is already there and the walls are already open. But that’s exactly when bad decisions get made. The money you’ve already spent is gone. The only question is whether spending this additional money is the right call for your project and your budget.

When to push back

Not every change order is legitimate. Here’s when you should push back or refuse to sign.

If the work should have been in the original contract. A good contractor includes allowances for common unforeseen conditions. If your contract had an allowance for “electrical upgrades up to $1,500” and the contractor is hitting you with a change order for a $1,200 electrical fix, push back. That’s what the allowance was for.

If the description is intentionally vague. “Miscellaneous repairs” is not a change order. Neither is “additional work as needed.” The contractor needs to tell you exactly what they’re doing, why, and for how much.

If the pricing isn’t transparent. A change order that just says “$2,500” with no breakdown is not acceptable. You’re entitled to know what you’re paying for.

If you feel pressured to sign immediately. A reputable contractor will give you time to review. If they’re standing there with the crew watching, ask to take the document home and look at it overnight. If they refuse, that’s a sign that something is off.

How to document your approval

Once you’re satisfied, here’s how to handle the paperwork.

Always sign in writing. Verbal approvals lead to disputes. Send an email confirming your approval if you’re not signing a physical document. Include a reference to the change order number and the agreed price.

Keep a log. Track every change order by number, date, amount, and description. This is your project’s financial record. When you get to the final payment, you’ll be glad you have it. Save that log with your inspection records after the project so warranty or final-payment questions are easier to sort out later.

Get a copy of the signed version. Make sure you walk away with a signed copy — not just the contractor’s copy. If disagreements come up later, you need your own records.

Update your budget immediately. The moment you sign a change order, update your project budget. That $1,850 change order means your contingency just got $1,850 smaller. Know where you stand at all times, especially if the change affects your payment schedule or draw request.

Quick Answers

Q: Can a contractor start work before I sign a change order?

Only if your original contract allows it. Most contracts require written approval before any additional work begins. If the contractor starts work without your signed change order, you’re not automatically obligated to pay. But it creates a messy situation that’s best avoided by sticking to the paperwork.

Q: Do I have to approve a change order?

If the work is truly necessary — like fixing a structural issue that was discovered during demo — you need to approve it or the project can’t move forward. But you have the right to negotiate the price, timeline, and scope before you approve. You’re not obligated to accept the first number they give you.

Q: How long do I have to approve a change order?

Your contract might specify a timeline — commonly 3-7 days. If it doesn’t, a reasonable timeframe is whatever you need to review it carefully. For urgent issues (like an active leak), you’ll want to act faster, but you still have time to ask questions and understand what you’re approving.

Q: What happens if I refuse to sign?

The contractor can’t legally perform work outside the original contract scope without your approval. If you refuse to sign, the contractor has two options: do the work at their own cost (unlikely for significant changes), or stop work until the issue is resolved. In practice, most disputes get settled through negotiation. Rarely, a refusal to sign leads to contract termination — but that’s usually a last resort.

Q: Can I approve a change order verbally?

You can, but you shouldn’t. Verbal approvals create ambiguity. Did you actually say yes? Did they hear what you think you said? Written approval — email, text, or signed document — is the only way to protect yourself. If they start work based on a verbal conversation and the bill comes out different than you expected, you’ll have a much harder fight without written proof.