Contractor Change Orders: What They Are, When They're Legitimate, and How to Protect Yourself
Change orders are normal. Change order abuse is common. Here's how to tell the difference — and how to set up your contract so you're never surprised mid-project.
Legitimate Change Orders
These are real situations where extra cost is justified and expected:
Hidden rot or water damage
Legitimate — 25–30% of jobsOpening walls or removing old decking often reveals rot that was invisible before demo. The work to fix it is real, necessary, and not predictable from a surface inspection.
How to mitigate: Mitigate by getting a per-unit rate (per sheet of decking, per LF of framing) before signing. Then you're not negotiating with the wall open.
Outdated electrical or plumbing
Legitimate — 30–35% of kitchen/bathPre-1970 homes frequently have galvanized pipes, knob-and-tube wiring, or undersized panels. Only visible once walls are open.
How to mitigate: Ask the contractor: "What are you likely to find in a home of this age?" A good contractor tells you the likely change orders upfront.
Structural issues discovered
Legitimate — 10–15% of decks/additionsA wall you wanted removed turns out to be load-bearing. Requires a header beam, posts, and an engineer — real added cost.
How to mitigate: For any wall removal, get a structural engineer opinion before bidding if possible.
Homeowner-requested scope changes
Legitimate — 40% of kitchen remodelsYou change your mind on tile, add an outlet, upgrade appliances. These are legitimate — you changed the scope.
How to mitigate: Budget a 10–15% contingency and track your own changes separately from contractor-initiated ones.
Change Order Red Flags
Change order for work that was clearly in scope
Contractor claims demolition, permits, or site cleanup is "extra" when any reasonable reading of the original scope included it. This is a scope dispute, not a change order.
No photos or documentation for hidden conditions
Any change order for discovered rot, structural issues, or code problems should include photos before the fix. No photos = no verification.
Verbal change order approval pressure
"I need you to approve this now or we have to stop work." This is pressure tactic. Take 24 hours. Review in writing. Never approve verbally.
Change orders that exceed 20–30% of original contract
One or two legitimate change orders on a renovation are normal. If change orders are approaching 30% of the original bid, the original bid was either incomplete or the contractor is padding.
No unit pricing was established before work started
If you didn't get a per-sheet rate for decking replacement before demo, you're negotiating at the worst possible moment. This is the contractor's leverage point and a common setup for overcharging.
The Pre-Work Change Order Setup
The best protection happens before work starts, not during. Before signing the original contract, establish:
BidLens flags change order bait in original bids
Upload your bid and BidLens identifies vague scope items, missing unit pricing, and “included” without dollar amounts — the language that turns into change orders after you sign.
Analyze my bid free →Frequently Asked Questions
What is a contractor change order?+
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