What Is a Change Order When Building a New Home?
You've chosen your floor plan and construction is underway. Now you want to move an outlet, change the flooring, or add a feature. Before making that decision, it's important to understand how change orders work and what they could cost.
The Short Answer
A change order is a written modification to the original construction agreement, plans, specifications, or approved selections. It documents what is changing, any additional cost or credit, and potential effects on the construction schedule. Depending on the builder and contract, change orders may require approval before the revised work begins. Some production builders do not allow changes after certain deadlines.
Shannon Sanborn The Flying Realtor
I'm Shannon Sanborn, a Gainesville native and real estate agent with eXp Realty. Before becoming an agent, I spent more than 20 years working hands-on in the construction industry.
I've seen what goes into building a home, long before the final finishes are installed. That background helps me guide buyers through the questions, details, and decisions that come with purchasing new construction.
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Four Things to Understand Before Approving a Change Order
Construction changes can involve more than the price of a material or fixture. Here are four things buyers should understand before requesting or approving changes.
Changes Can Increase Costs
A change order may include additional materials, labor, administrative fees, or work that must be redone. Ask for the full price in writing before approving the change.
Timing Matters
Moving an electrical outlet before drywall is installed may be simpler than moving it after the walls are finished. Changes requested later in construction can be more difficult, expensive, or unavailable.
Not Every Builder Allows Changes
Many production builders use standardized plans and construction schedules. They may limit buyers to approved selections or require decisions before specific construction milestones.
Financing May Be Affected
Additional upgrades or construction costs may affect your total purchase price, required cash, appraisal, or financing arrangements. Discuss significant changes with your lender before committing.
What Are Common Examples of Change Orders on New Homes?
A change order might involve modifying a floor plan, relocating electrical outlets, adding recessed lighting, changing flooring materials, upgrading cabinetry, or requesting additional plumbing fixtures.
Some requests are relatively straightforward when made early enough. Others may require revised drawings, different materials, additional labor, permits, or changes to work that has already been completed.
It's also important to distinguish between a design selection and a change order. Choosing an approved countertop during your scheduled design appointment may simply be part of the builder's selection process. Requesting a different countertop after the original material has been ordered may require a formal change order.
Ask the builder which selections are included, when decisions become final, and whether changes are permitted after approval.
What Should Be Included in a Construction Change Order?
Before approving a change, request a written document clearly describing the original work and the proposed modification. It should identify the materials, features, or construction details being changed.
The document should also explain any additional charge or credit, payment requirements, and known effects on the schedule. Confirm whether the change is subject to additional approvals or restrictions.
Make sure the required parties approve the change according to the contract. Keep copies of signed change orders, revised plans, receipts, and related communications.
Never assume a conversation with a salesperson or construction supervisor automatically changes the purchase agreement. Follow the builder's formal approval process and confirm that the change is authorized.
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