Why Changes Are Costly

Q. Tim, we have heard that changes made after construction begins can be costly, but we do not understand why. Would you help us understand the costs associated with change orders?

Even a small change can affect the budget and schedule after work begins. The important questions are not only what is changing, but when the decision is made, what has already been ordered or installed, and how many people must redo or recoordinate their work.

Why timing changes the price

Making firm decisions during design and pre-construction is one of the most effective ways to reduce avoidable change costs. Once drawings, selections, and contract scope are approved, the builder and trade partners can plan labor, order materials, obtain approvals, and sequence the work around those decisions.

A later change may interrupt that sequence. The original material may need to be canceled, returned, or discarded. New material may carry a different price or lead time. Drawings and permits may need revision. A completed trade may need to return after another trade opens the work back up.

Consider a homeowner who decides that the window over the kitchen sink should be larger. During design or an early framing review, the team may still have options. After the window, insulation, drywall, exterior finish, cabinetry, and countertop relationships are established, the same request can affect far more work.

How a small change creates a ripple effect

A change that sounds minor in conversation may cross several scopes. Suppose the homeowners replace a planned powder-room vanity with a pedestal sink. Depending on project timing and conditions, that one decision could involve several steps:

• Cancel or return the vanity, top, faucet, and related accessories, possibly with restocking or cancellation charges.
• Confirm the new sink’s price, availability, dimensions, finish, and compatible fittings.
• Revise the plumbing rough-in and schedule the plumber’s return.
• Determine whether inspection, drawing, or permit documentation must change.
• Repair drywall, paint, flooring, trim, or blocking affected by the revised installation.
• Recoordinate the trades and update the project schedule and budget.

Not every sink change will trigger every item on that list, and no fixed multiplier or delay applies to all projects. The example shows why the full impact can be larger than the price difference between two fixtures.

Administrative work is real work

A properly managed change also requires office and project-management time. The team must define the revised scope, request or validate pricing, communicate with trades and suppliers, update orders and drawings, identify the schedule effect, revise the budget, obtain authorization, and preserve a record for billing and closeout.

A contract may apply an administrative fee, builder markup, design fee, or another agreed pricing method to that work. The signed agreement should explain the method. A homeowner should not have to discover it after requesting a change.

Changes are still allowed

This explanation is not meant to discourage an important change. A well-considered revision may improve how the family lives in the home, correct a newly discovered condition, or prevent a larger regret. The purpose of a change-order process is to make the decision with clear information—not to make change impossible.

Before changed work proceeds, the homeowner should receive a written explanation of the revised scope, price or pricing basis, schedule effect, and relevant assumptions, then authorize it as the contract requires. Concealed conditions or genuine emergencies may follow a separate documented procedure, so the contract controls.

The best time to make a decision

The cheapest change is often the one explored before it becomes a field change. That is why detailed design, complete selections, realistic allowances, coordinated drawings, and careful pre-construction deserve time. When a later change is worth making, a transparent written process helps the homeowner decide with a clear view of the cost, timing, and benefit.