Change Orders: The $15K Surprise & How to Stop It

From Your Home Building Coach with Bill Reid William W. Reid

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Change orders start more arguments on job sites than anything else. You're three weeks into your remodel when the contractor mentions an extra $15,000 for work you thought was included. Bill Reid explains the critical distinction most contracts ignore: change orders versus extra work orders. A change order is something already in your plans that you changed. An extra work order is brand new work never in the original scope. The number one source of both is incomplete plans and specifications. Things never addressed during design or discussed but never written down. Bill covers how change orders work in cost-plus versus fixed-price contracts, how to verify fair pricing by checking markup consistency, the danger zone where unauthorized work breaks relationships, and the iron rule that protects both sides: no signed order, no work, no payment. Prevention strategies include finalizing decisions before construction starts, investing in complete plans, building contingencies, and tracking running totals. Same surprises, wildly different outcomes — separated by planning work done before anyone picked up a hammer.

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