Change Orders: What to Expect (& How the Best Builders Handle Them)

Ask any builder, remodeler, or tradesperson about change orders, and you’ll hear a familiar groan. They’re time-consuming, emotionally charged, and almost always expensive. But if you’re a homeowner planning a custom build or remodel, you might be wondering, are they inevitable? On a recent Curious Builder podcast episode, we sat down with Allyson Case Anderson and Brad Leavitt to break down the actual cost of change orders—and how strong systems can help you avoid the chaos altogether.

The Hidden Cost of Change Orders

At first glance, a change order might seem harmless: swap a tile, add a light fixture, move a wall six inches, a little material substitution here or there. But behind every change is a ripple effect—on your schedule, your subcontractors, your margin, and your relationship with the client. 

“Projects with a lot of change orders usually go sideways,” said Allyson Case Anderson. And she’s right. Every owner-initiated change—big or small—requires communication, rework, rescheduling, and recalculating. Without a clear system, those additional costs are absorbed by someone. Spoiler: it’s usually you.

What the Best Builders Do Differently

Great builders don’t avoid change orders, they just manage them differenty. Here’s how to handle them:

1. Charge for Change Orders—Every Time

Allyson charges a $500 minimum for every change order. That covers two hours of coordination time—because yes, even small changes take hours and affect project completion.

Brad looks at total impact: project manager hours, project schedule delays, material cost and waste, and labor rescheduling. If it eats into your profit, it needs a price.

Mark noted that inconsistency breeds distrust. If you only charge some clients or forget to charge on certain changes, clients start to question what else might be slipping through the cracks.

2. Document Everything—Even $0 Changes

Every deviation from the original scope—whether it adds cost or not—gets logged.

This practice protects you legally, but more importantly, it provides transparency for the client. When they see that some changes added cost of materials and others didn’t, it builds trust. It also makes sure no one forgets the verbal agreements in a moment of hallway conversation.

3. Put in the Work During Pre-Construction Projects

The best time to make changes is before the original contract is signed!

Pre-construction isn’t just about selections. It’s about forecasting decisions, setting realistic expectations, and stress-testing the vision of the home before anyone swings a hammer. This early work, more than anything else, helps keep your build on track.

When changes happen early, they’re part of the real time process. When they happen mid-construction, they’re a liability. Of course, there may still be unforeseen issues, but the more thorough you can be pre-construction, the better!

Want to know what sets our process apart here at MDW? Find out here!

What You Can Expect From Our Process

If you’re planning a custom build or renovation, here are a few ways to stay ahead of change order stress:

• Understand how your builder handles change orders upfront. Ask if there’s a flat-rate fee or minimum charge for changes after construction begins.

• Expect to sign off on every change. Even if it’s $0, it should be documented. This keeps the project clear and organized.

• Know there may be approval deadlines. Some changes—especially those that affect the schedule—can’t wait indefinitely. If you delay, pricing or availability may shift.

• Ask how your builder handles delays caused by changes. Some contracts include per diem charges if a decision holds up the build—this protects everyone’s time.

• Make the most of the pre-construction phase. The more choices you finalize up front, the smoother your build will be.

Lead the Process or the Project Will Lead You

Change orders don’t have to derail your build - but we do believe that they need a system. The best builders use change orders thoughtfully, communicate clearly, and set consistent expectations from day one. That clarity gives homeowners peace of mind, knowing nothing is slipping through the cracks.

When you understand how your builder handles changes—and why it matters—you can focus on the excitement of building your home, not the stress.

Want the inside scoop on what Builders are handling change orders? Learn more by tuning into The Curious Builder Podcast – Episode 42, where we explore the realities of pre-construction and the systems that set great builders apart.