The short answer: A change order is a written, signed agreement that changes your construction contract after it’s signed. It adds or removes work, adjusts the price, and shows how the payment schedule or finish date moves. In California, a home improvement change order has to be in writing and signed by you and the contractor before the changed work starts, and it must spell out the scope, the dollar amount, and the effect on payments or the completion date. Most surprise costs can be avoided with a detailed scope, realistic allowances, decisions made early, and a clear plan for hidden conditions.
“Why did my price go up after we started?” It’s one of the most common questions homeowners ask in the middle of a remodel, and it usually comes with a little panic.
Here’s the thing. A change in price isn’t automatically a sign that something shady is going on. Remodels uncover things, and homeowners change their minds. What matters is how the change gets handled: in writing, with a price, before the work happens, or after the fact with an invoice you never saw coming.
Below we’ll walk through what a change order is, what California requires, why change orders happen, and the practical steps that keep them from wrecking your budget.
What is a change order, in plain English?
Think of your contract as the agreed recipe: this scope, this price, this schedule. A change order is a written amendment to that recipe. Once both of you sign it, it becomes part of the contract.
A change order can go in either direction. It can add work (you decide to move the shower drain), remove work (you’ll buy and install the light fixtures yourself), or swap one thing for another (porcelain tile instead of natural stone). It can raise the price, lower it, or leave it the same while moving the schedule.
The key word is before. A change order is supposed to be agreed on before the changed work begins, not presented as a bill after it’s done.
What does California law require for a change order?
For home improvement contracts, California’s Business and Professions Code section 7159 sets the ground rules. Here’s what it says about changes, in plain terms:
| Requirement | What it means for you |
|---|---|
| A change order form is part of the contract | Your contract should already describe how changes are handled |
| Changes must be in writing and signed by both parties | A text, a phone call, or a nod on the jobsite isn’t a signed change order |
| Signed before the changed work starts | You see the price before the work happens, not after |
| States the scope of the change | You know exactly what’s being added, removed, or swapped |
| States the amount added or subtracted | One clear dollar figure, up or down |
| States the effect on progress payments or the completion date | You know how the payment schedule and the finish date move |
| Contract includes a “Note About Extra Work and Change Orders” | A required notice explaining these rules to you |
The statute also says a change order isn’t enforceable against the homeowner unless it identifies the scope, the amount, and the effect on payments or the completion date in writing before the work starts. It cuts both ways, too: you can’t require a contractor to do extra work without giving written authorization first.
One important caveat. The same section says a contractor who skips these steps may still be able to seek payment for work actually performed, through legal remedies meant to prevent unjust enrichment. So “they never got a signed change order” doesn’t automatically mean “I don’t owe anything.” If you’re in a dispute, that’s a question for an attorney (this article isn’t legal advice).
The Contractors State License Board (CSLB) sums up the practical rule in its home improvement contract guide: if the contract price needs to change, it must be done with a written change order that becomes part of the contract. The CSLB also suggests keeping your change orders with the rest of your project paperwork.
Why do change orders happen?
Most change orders trace back to a handful of causes. A large national survey gives a useful picture. In the 2026 U.S. Houzz & Home Study (renovations completed in 2025, more than 20,000 homeowners surveyed), 37 percent of renovating homeowners said they went over budget. Among those who did, the most common reasons were:
| Reason homeowners gave for going over budget | Share of over-budget homeowners |
|---|---|
| Unexpected product or service costs | 52% |
| Chose more expensive products or materials than planned | 35% |
| Unexpected project complexity | 32% |
| Expanded the project scope mid-renovation | 31% |
| Construction issues discovered once work was underway | 22% |
These are national figures, and people could give more than one reason, so they don’t add up to 100. Still, notice something: several of the top reasons are choices homeowners made, not just surprises behind the walls.
In our experience, change orders tend to fall into four buckets:
- Owner changes. You see the framing and want a wider opening, add a niche to the shower, or decide the whole room needs new flooring.
- Hidden conditions. Damaged framing under a leaky tub, old wiring that can’t be extended, or a drain line that isn’t where anyone expected. Nobody can see through walls before demolition.
- Gaps in the plans or scope. Something was never drawn, specified, or priced. Vague scopes like “remodel bathroom” invite this.
- Inspector or code requirements. An inspector may require corrections or additional work to meet code, which can add cost.
How do I avoid surprise costs on a remodel?
You can’t eliminate every change order. Old homes keep secrets. But you can make most of them smaller, fewer, and predictable. Here’s what helps most:
- Start with a detailed scope. Brands, models, sizes, quantities, and finishes in writing. The tighter the scope, the fewer gaps.
- Read the exclusions. Painting, patching, permit fees, appliance hookups, haul-away. Anything excluded is a likely future change order. (Our guide to what a California remodeling contract must include has a full checklist.)
- Make your selections before work starts. Tile, fixtures, cabinets, and counters picked early mean fewer “while we’re at it” decisions under time pressure.
- Make allowances realistic. An allowance is a placeholder dollar amount for something not yet chosen. If the tile allowance is low compared with the tile you actually want, the difference shows up as a change.
- Ask how hidden conditions are handled. Before you sign, ask how surprise conditions will be documented, priced, and approved. Some contracts set unit prices or labor rates ahead of time so you’re not negotiating in the middle of demolition.
- Keep a contingency. Set aside money you hope not to spend. How much depends on the age of the home and the scope; we cover the cost drivers in our look at what drives the cost of a bathroom remodel in Southern California.
- Get a signed change order before the work. Every time, even for small items. Small “sure, go ahead” moments add up.
- Track the running total. Keep a simple log: change order number, description, amount, and new contract total.
What should a good change order include?
Beyond the legal minimum, a clear change order usually shows:
- A change order number and date
- A plain description of what’s being added, removed, or swapped
- The cost, ideally broken into labor and materials
- The new contract total after the change
- How the payment schedule changes
- Any change to the completion date
- Signatures from you and the contractor
If a proposed change order is vague, like “additional work, $3,500,” it’s fair to ask for more detail before you sign.
What should I do if I get a bill for work I never approved?
First, don’t panic, and don’t ignore it. Ask the contractor, in writing, for the details: what work was done, why it was needed, and the cost breakdown. Compare it against your contract and any signed change orders.
Sometimes it’s a misunderstanding that gets cleared up quickly. If it isn’t, you can file a complaint with the CSLB, and for larger sums it’s worth talking with an attorney before you pay or refuse to pay.
What you can handle yourself, and when to get help
You can do this yourself:
- Read your contract’s change order section and the required notice before you sign
- Ask for every change in writing, with a price, before work starts
- Keep a running log of change orders and the updated contract total
- Make your finish selections early and compare them with your allowances
Get help when:
- A contractor insists on starting extra work without a written, priced change order
- You receive a bill for work you didn’t approve in writing
- Change orders are adding up faster than the work is progressing
- You’re unsure what a contract clause means (talk with an attorney)
Frequently asked questions
What is a change order in construction? A written, signed amendment to the contract that adds, removes, or changes work, with its effect on price, payments, and schedule.
Does a change order have to be in writing in California? For home improvement contracts, yes. It must be in writing and signed by both parties before the changed work starts.
What must a California home improvement change order include? The scope of the change, the amount added or subtracted, and the effect on progress payments or the completion date.
Can a contractor charge more than the contract price? Only through a change to the contract. In California, price changes on a home improvement contract should be made with a written, signed change order before the work.
Are change orders a bad sign? Not necessarily. Some are caused by hidden conditions or your own upgrades. A pattern of unwritten or unpriced changes is the red flag.
How can I reduce change orders? Use a detailed scope, read the exclusions, choose finishes early, set realistic allowances, and agree on how hidden conditions will be priced.
Planning a remodel? Let’s get the scope right first.
The best way to avoid surprise costs is to do the hard thinking before anyone picks up a hammer: a clear scope, real numbers, and an honest conversation about what could change.
De Sisto Construction, Inc. is a California licensed general contractor (CSLB License #803545), based in Signal Hill and in business since 2001. We provide step-by-step project outlines and line-item costing, so you can see where every dollar goes and how any change will be priced. Explore our residential remodeling services, from kitchens and bathrooms to room additions and ADUs.
Give us a call at 562-425-1050 or email us at info@desistogc.com (dcidirect.net)
One Response