How Should a Remodeler Handle a Change Order?
By Wyatt Cooper · Published · 6 min read
Key takeaways
- Write every change down and get it signed by the homeowner before the changed work starts, even when the homeowner asks in person on site.
- California's contractor board requires a home improvement change order to state the scope, the amount added or subtracted, and the effect on the progress payments or the completion date.
- Price a swap as the new work minus the credit for what it replaces, then your markup, and say how many days it adds.
- In the worked example, quartz in place of laminate is a $4,437.50 change order with three working days, and the contract becomes $72,437.50.
Handle a remodel change order in writing, before the work: describe what changes, price it as the new work minus any credit for work no longer needed plus your markup, state the days it adds and how it changes the payment schedule, and have the homeowner sign it before you start. Several states set rules for home improvement contracts; California, for example, makes a change order unenforceable against the homeowner unless it states the scope, price change and effect on payments or completion.
In writing and signed, before the work
On a remodel, most changes start as a conversation in the kitchen. Turn each one into a written change order the homeowner signs before the changed work begins. California's Contractors State License Board says it directly: if the contract price or scope needs to change, it must be done with a written change order signed by the customer and contractor before the change (CSLB).
CSLB's sample home improvement contract spells out what the order must say. Extra work or a change order is not enforceable against the homeowner unless it identifies in writing, before the work starts, the scope of the work, the amount added to or subtracted from the contract, and the effect on the progress payments or the completion date (CSLB sample contract). The same sample notes that a contractor who misses these steps may still recover for the work through remedies against unjust enrichment, but that is a fight, not a payment.
Other states write it differently. Massachusetts, for example, requires every residential contracting agreement over $1,000 to be in writing with the total price and a schedule of payments, and limits the deposit to one third of the price or the cost of special-order materials, whichever is greater (M.G.L. c. 142A, §2). Read your own state's home improvement rules before you write your change order form.
What a remodel change order says
| Part | What to write | Why |
|---|---|---|
| Number and date | CO 3, the date it was written | So both sides can refer to it later |
| What changes | The work added, removed or swapped, with brand, model or finish | The homeowner signs for exactly this |
| Price | The amount added or credited, and the new contract total | California requires the amount added or subtracted |
| Payments | Which progress payment the change is billed with | California requires the effect on progress payments or completion |
| Time | Working days added, and the new finish date | The homeowner plans around the finish date |
| Signatures | Homeowner and contractor, before the work | An unsigned order may not be enforceable |
Selections are where most remodel changes come from. If the contract carried an allowance for tile or fixtures, a pick that costs more than the allowance is a change order for the difference, written the same way.
Price it from cost, with a credit for what it replaces
Price a change the way you priced the job: your labor at burdened rates, materials with tax, and your subs' quotes, then your markup. When the homeowner swaps one thing for another, take credit for the original item you no longer buy or install, and mark up the net. How to price a change order walks through the cost lines, and markup vs margin explains why a 25% markup is a 20% margin.
Add days when the change pushes the finish: new templates, longer lead times, a re-inspection. Say so in the change order, because a change signed with no days usually settles the time question.
A worked example: quartz in place of laminate
The job is fictional: a kitchen remodel with a $68,000 contract. After cabinets are set, the homeowners ask for quartz countertops in place of the laminate in the contract. The fabricator quotes $5,400.00 installed; the laminate the remodeler no longer needs would have cost $1,850.00 installed. The remodeler's contract allows a 25% markup on changes.
| Line | Basis | Amount |
|---|---|---|
| Quartz, fabricated and installed | Fabricator's quote | $5,400.00 |
| Credit: laminate not installed | Original cost | −$1,850.00 |
| Net cost | $5,400.00 − $1,850.00 | $3,550.00 |
| Markup | 25% × $3,550.00 | $887.50 |
| Change order total | $3,550.00 + $887.50 | $4,437.50 |
| New contract total | $68,000.00 + $4,437.50 | $72,437.50 |
| Time | Template, fabrication and install after cabinets | 3 working days |
Change order 3 — Quartz countertops in place of laminate
- What changes
- Furnish and install 3 cm quartz countertops (color and edge per the homeowners' selection sheet) in place of the laminate countertops in the contract
- Amount added
- $4,437.50 (quartz $5,400.00, less laminate credit $1,850.00, plus 25% markup $887.50)
- New contract total
- $72,437.50
- Payments
- Added to the progress payment due at countertop installation
- Time
- 3 working days added; new substantial completion date moves by 3 working days
- Signatures
- Homeowners and contractor, before the fabricator is released
- 1HomeownerAsks for the change
- 2RemodelerPrices it, with the credit, markup, days and payment effect
- 3Homeowner and remodelerSign the change order before the work
- 4RemodelerDoes the work
- 5HomeownerPays it with the progress payment named in the order
Keep the change log with the contract
Number the change orders, keep the signed copies together, and show the running contract total on each progress invoice: original contract, approved changes, new total, paid to date. It prevents most end-of-job arguments, which are usually about a change nobody wrote down. Use the change order pricing calculator to check the arithmetic before you send one.
The bottom line
A remodel change order is a short, signed page: what changes, the price added or credited, the new contract total, the days, and which payment it lands in, signed before the work. Price swaps as the new work minus the old, then your markup.
Conflo is built for commercial construction today; residential builders and remodelers can join the waitlist to hear when that changes.
Sources
- Learn About Home Improvement Contracts — Contractors State License Board (California). Read October 16, 2026.
- Sample Home Improvement Contract (2025) — Contractors State License Board (California). Read October 16, 2026.
- General Laws, Chapter 142A, Section 2: Residential contracting agreements; requirements — Massachusetts Legislature. Read October 16, 2026.
Questions
Does a change order on a remodel have to be in writing?
In many states, yes, and it is good practice everywhere. California's contractor board requires a written change order signed by the customer and contractor before the change, stating the scope, the amount added or subtracted, and the effect on payments or the completion date. Check your state's law.
Can a contractor charge for extra work without a signed change order?
It is harder. In California, an unsigned change order is not enforceable against the homeowner, though the contractor may still seek payment through remedies against unjust enrichment. Get the signature first.
How do you price an upgrade the homeowner picks?
Price the new item installed, take a credit for the original item you no longer buy or install, and add your markup on the net. If the item was an allowance in the contract, the change is the difference between the real cost and the allowance.
Should a remodel change order add time?
When it pushes the finish, yes. State the working days and the new completion date in the change order, so the homeowner signs for the time as well as the money.
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