What Is a Change Order?

A change order is a formal modification to your original purchase agreement that changes something about the home — typically an addition, removal, or substitution of features, materials, or design elements.

The Short Answer

A change order documents any change to the home's original plans or specifications after you sign the purchase agreement. Changes can include adding features, upgrading materials, modifying the floor plan, or adjusting finishes selected at the design center.

Change orders typically come with additional costs, and the total can add up quickly.

Common Change Orders

Structural changes (adding a room, modifying a wall), material upgrades (countertops, flooring, cabinets), electrical additions (extra outlets, pre-wiring), plumbing changes (adding a gas line, moving a fixture), and exterior modifications (patio, landscaping, fencing).

Cost and Timing

Change orders are almost always more expensive than selecting the upgrade at the time of the original contract. The builder incurs additional costs for re-planning, material changes, and schedule disruptions.

Some change orders are only possible at certain stages of construction. Once the foundation is poured or the framing is complete, certain changes become impractical or prohibitively expensive.

Your builder may charge an administrative fee for each change order in addition to the cost of the change itself.

Protecting Yourself

Get every change order in writing with a clear description of the change, the additional cost, and the impact on the construction timeline.

Do not approve verbal change orders. If the builder or site manager suggests a change, insist on written documentation before agreeing.

Review each change order carefully before signing. Once you sign, you are committed to the additional cost.

Try to finalize all your selections and changes as early as possible to minimize change order costs.

Related Content

Have a new construction contract? Scan it for $49 at fineprint.homes