Building a new home sounds simple.
- Choose the floor plan.
- Pick the finishes.
- Wait for the house to be built.
In reality, there can be a lot of decisions between signing the contract and getting the keys.
- You may decide you want different flooring.
- You may add a bathroom feature.
- You may change a cabinet package.
- Or the builder may tell you that a material you selected is no longer available.
That's where change orders come in. A change order is a written change to the original construction agreement, plans, specifications or selections. Some changes are initiated by you. Others may be initiated by the builder. Either way, a change order can affect more than the price. It can affect your budget, timeline, financing and final home.
What Is a Change Order?
A change order documents a change to what was originally agreed upon. Depending on the builder and the situation, it may change:
- Materials
- Finishes
- Features
- Floor plans
- Specifications
- Pricing
- Construction timing
For example, your original contract may include standard kitchen cabinets. You decide to upgrade to a different cabinet package. The builder creates a change order showing:
- Original selection: Standard cabinets
- New selection: Upgraded cabinets
- Additional cost: $6,500
- Change: Kitchen cabinet package
Once approved according to the builder's process, that change becomes part of the transaction. The exact process varies by builder.
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