What Are Change Orders and Why Do Contractors Write Them?

Change orders are an essential part of construction and remodeling projects, often necessary to ensure the project remains aligned with the homeowner's vision and complies with unforeseen circumstances. Understanding what change orders are, why contractors write them, and how they impact your project can help you navigate the remodeling process with confidence.

What Are Change Orders?

A change order is a formal document issued by the contractor to the homeowner that details changes or modifications to the original scope of work outlined in the construction contract. These changes can include adjustments in materials, design, timelines, or costs. Change orders serve as an official record that both parties agree to the new terms and conditions, ensuring transparency and accountability.

Why Do Contractors Write Change Orders?

Contractors write change orders for several reasons, all aimed at addressing unforeseen circumstances, client requests, or necessary adjustments to the project. Here are five common reasons for issuing change orders:

1. Unforeseen Conditions

During construction, contractors may encounter unforeseen conditions that were not apparent during the initial planning stages. For example, these could include hidden structural issues, electrical problems in your kitchen, plumbing complications in your bathroom, or other issues. When such issues arise, a change order is necessary to address the additional work required to resolve them.

2. Design Changes

Homeowners often refine their vision as the project progresses. They might decide to change the layout, upgrade materials, or add new features. Change orders provide a structured way to incorporate these design changes into the project, ensuring that the new plans are documented and agreed upon.

3. Compliance with Building Codes

Building codes and regulations can change, or previously unknown requirements might come to light during construction. Contractors must ensure that the project complies with all relevant codes and regulations. A change order is used to document any necessary adjustments to meet these requirements.

4. Scope Creep

Scope creep occurs when additional tasks or features are added to the project beyond the original agreement. These changes, while sometimes minor, can accumulate and significantly impact the project's timeline and budget. Change orders help manage scope creep by formalizing and approving each new task.

5. Material Availability

Sometimes, the materials specified in the original contract may become unavailable or have long lead times. In such cases, contractors may need to substitute materials. A change order ensures that the homeowner is informed of and agrees to the new materials and any cost or timeline adjustments.

Impact of Change Orders on Your Project

Change orders can have several impacts on your remodeling project, both positive and negative. Understanding these impacts can help you manage expectations and make informed decisions.

Budget Adjustments

Change orders often come with cost implications. Whether it's addressing unforeseen issues, incorporating design changes, or complying with new regulations, these modifications can increase the overall project cost. It's essential to review and approve each change order carefully to avoid budget overruns.

Timeline Revisions

Implementing changes can also affect the project timeline. Additional work or the need to wait for new materials can lead to delays. Contractors will update the project schedule to reflect these changes, providing a revised timeline for completion.

Enhanced Quality and Satisfaction

While change orders can increase costs and extend timelines, they also ensure that the final result meets your expectations and adheres to safety standards. By addressing issues as they arise and accommodating your evolving vision, change orders contribute to the overall quality and satisfaction of the project.

Managing Change Orders Effectively

When choosing your contractor, ask about the contractor's process for managing changes or unexpected issues that arise during the project. Make sure you understand how they will communicate these changes and how they impact the overall cost and timeline before your project begins. Then, to manage change orders effectively, it's crucial to maintain clear communication with your contractor. Regularly review the project's progress and discuss any potential changes as soon as they arise. Ensure that all change orders are documented in writing and approved before any additional work begins. This practice helps prevent misunderstandings and keeps the project on track.

How to Avoid Change Orders

At VL Builders, we work diligently during the initial consultation and planning phase to minimize change orders as much as possible. Some of the ways we achieve this include:

Code Compliance Evaluation:

During the initial consultation and throughout the design process, VL Builders reviews local jurisdiction code requirements. We then conduct an on-site inspection and code compliance evaluation of your home, assessing all plumbing, electrical, and mechanical systems for compliance. Any issues identified are automatically budgeted for and included in your project's scope of work to prevent unexpected costs.

Demolition & Discovery:

Many remodeling projects involve moving walls or relocating fixtures. If there are any questionable areas, we perform demolition and discovery during our trade walk-through day to uncover and plan for hidden conditions as thoroughly as possible. This process includes verifying items concealed within walls, such as plumbing, electrical, and HVAC systems, determining how an existing addition was added into the home, and identifying any potential water-damaged areas that may require repair.

Communication:

Most change orders written by VL Builders are for client-requested items once work has begun, such as painting additional rooms or adding new light fixtures to other spaces. During the initial consultation and throughout the design and planning process, our expert designers and project developers engage in numerous conversations to ensure as many wishlist items as possible are included in the final fixed-price construction contract before work starts.

Plan Your Remodeling Project

If you're planning a remodeling project in the Lakewood, Colorado, area, and want to ensure smooth execution and clear communication, contact VL Builders today. Our experienced team is here to help you bring your vision to life while managing every aspect of the project efficiently.