Change orders: when they're legitimate and when they're not
Some change orders are legitimate (hidden damage, code requirements). Others are from poor initial scoping. Know the difference.
How do I know if a change order is fair?
Legitimate change orders typically fall into 3 categories: (1) Hidden conditions - opening a wall reveals water damage, rotted framing, or outdated wiring that must be addressed. You couldn't have known about this before demo. (2) Code requirements - the inspector requires something not in the original scope (e.g., additional smoke detectors, upgraded electrical panel). (3) Homeowner-requested changes - you decided to upgrade the countertops or add an outlet. For each change order, ask: Was this reasonably foreseeable? If the contractor could have anticipated it during the estimate, it should have been included in the original price. Check the pricing against market rates for the specific work. A fair change order has a detailed description, specific pricing, and a timeline impact assessment.
Can my contractor charge extra for something that should have been included?
If a scope item was clearly part of the original estimate and contract, the contractor should not charge extra for it. For example, if your kitchen remodel contract includes 'full electrical upgrade' and the contractor then charges extra for 'installing outlets,' that was already covered. Review your contract's scope of work carefully. If the extra charge is for something the contractor should have anticipated as part of standard practice for your project type, push back. Put your objection in writing: 'This work appears to be within the original scope described in our contract. Please explain why this is a separate charge.'
What if change orders add up to more than 20% of the original contract?
If change orders exceed 15-20% of the original contract value, something went wrong - either the original scope was inadequate, the contractor underbid intentionally, or there are genuinely unusual conditions. Review each change order individually. If most are for hidden conditions (water damage, structural issues), they may be justified. If most are for items that should have been in the original scope, the contractor did a poor job estimating. You have the right to get a second opinion on any change order pricing. For large change orders, consider getting an independent estimate from another contractor for just that specific work.
Related guides in Contracts & Legal
A good contract includes: detailed scope, specific materials, timeline with milestones, payment schedule, change order process, warranty, insurance requirements, and dispute resolution.
Document everything. Start with a written complaint to the contractor. Then file with CSLB. Mediation and small claims court are options for disputes under $10,000.
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