What Actually Causes Change Orders

Few words create more anxiety in a remodel than “change order”.

For many homeowners, it immediately feels like something went wrong — or worse, that someone made a mistake. The assumption is often that change orders are the result of poor planning, hidden costs, or contractor error.

But that’s rarely the full picture.

The reality is that change orders are not inherently about blame. They are adjustments to the original agreement when something shifts during construction. And in remodeling — especially in existing homes — shifts are common.

One of the most frequent causes is unseen conditions.

Until walls are opened, floors are removed, or foundations are exposed, certain elements remain unknown. Hidden plumbing, outdated wiring, structural modifications from prior renovations, water damage, improper framing — these conditions cannot always be identified during a walkthrough. Even with careful planning and inspections, some discoveries only become visible once demolition begins.

When that happens, the scope must adapt.

Design decisions are another common driver. As construction progresses, homeowners sometimes see the space in three dimensions for the first time. A window might feel too small. A doorway may need adjusting. A ceiling detail might look different than expected. These are not mistakes — they are refinements. But refinements still require labor, materials, and time.

Late selections also play a significant role.

When finish materials, fixtures, or appliances are chosen after construction has started, they can influence framing, electrical layouts, plumbing locations, or cabinetry dimensions. A different light fixture may require a different junction box. A specialty appliance may need upgraded wiring. a change in tile size may alter layout and labor. Selections ripple through a project more than most homeowners initially realize.

Allowance misunderstandings are another frequent source of change orders. Allowances are placeholders for items that haven’t been selected yet. If the final selection exceeds the original allowance, the difference becomes an adjustment to the contract. This is not a penalty — it’s simply reconciling a placeholder budget with an actual choice. Clear communication around allowances early on can significantly reduce surprises later.

What all of these scenarios have in common is that they are part of the remodeling process — not evidence that something has failed.

Construction in an existing home is dynamic. Conditions are uncovered. Decisions evolve. Preferences sharpen. Materials shift. The original agreement reflects what was known and selected at the time it was signed. Change orders reflect what was changed since then.

What matters most is not whether change orders occur. It’s how they are handled.

Are they documented clearly?

Is pricing transparent?

Is approval obtained before work proceeds?

Are they explained in plain language?

A structured change order process protects both the homeowner and the contractor. It ensures adjustments are communicated, agreed upon, and tracked.

When homeowners understand what actually causes change orders, the fear around them tends to soften. They become less about conflict and more about clarity. They are simply the mechanism that keeps the project aligned with reality as it unfolds.

Remodeling is rarely static. The key is eliminating change — it’s managing it responsibly.

If you want help reviewing your project before starting, we’re happy to talk.