What is a change order
After a construction contract has been awarded, if work needs to be added or deleted from a particular contract, a Change Order is required to modify the contract. A description of changes to be made to a project that describes the new work to be done (and any modifications) and the price to be paid for this new work. It is basically work that was not in the original contract and will be considered additional work that will need to be paid for by the client. Most change orders will be submitted in writing to the client and work will not be done until both the owner and contractor sign the change order document. Change orders are common in the construction industry and especially in the home remodeling business. We don’t know what is behind walls until we tear into them and sometimes there are unexpected items that were not in the original scope of work. We try to plan ahead for this and always include a “contingency budget” (3-5% of the construction total), but sometimes the new work will exceed this budget.