Construction Change Order Review Checklist for Homeowners

A construction change order can feel urgent because the project is already moving. The framer is waiting. The plumber found a conflict. The cabinet plan changed. The builder needs an answer today.

That urgency is exactly why homeowners need a repeatable review process. A change order is not just an extra bill. It changes the contract. It may change the scope, cost, schedule, payment timing, lender file, and your leverage for later decisions.

Use this checklist before you approve a custom home or remodel change order.

What a change order should do

A well-written change order answers:

1. What work is being added, removed, or revised?
2. Why is the change needed?
3. How much does it cost or credit?
4. How does it affect the schedule?
5. What backup supports the price?
6. Who approved it, and when?

AIA’s G701-style change order framework is useful even for non-AIA residential projects because it focuses on the adjusted contract sum and adjusted contract time. In plain English: What changed, what does it cost, and how does it affect completion?

Useful background: Procore’s guide to AIA G701 change orders.

Step 1: Classify the change

Start by naming the type of change. Different types deserve different questions.

Common categories:

• Owner selection: you chose a different fixture, finish, appliance, or layout.
• Design clarification: plans were incomplete or inconsistent.
• Field condition: soil, framing, utility, or existing-condition issue.
• Code or inspection requirement: authority having jurisdiction requires a change.
• Allowance overage: final selection exceeds the placeholder.
• Builder correction: work needs to be corrected or reworked.
• Scope gap: contract did not clearly include or exclude the item.

Do not accept “change order” as the only explanation. Classification tells you whether the cost belongs to you, the builder, an allowance reconciliation, or further discussion.

Step 2: Confirm the scope in writing

The scope description should be specific enough that someone could inspect completion later.

Ask:

• What exact work is added?
• What exact work is deleted?
• Which rooms, elevations, plan sheets, selections, or specifications are affected?
• Which trades are impacted?
• Are there downstream changes to drywall, paint, tile, electrical, plumbing, HVAC, cabinets, flooring, or landscaping?
• Are cleanup, protection, supervision, and reinspection included?

Avoid approving vague language like “upgrade electrical” or “additional framing.” Ask for quantities, locations, attachments, and the reason for the work.

Step 3: Review the price structure

A change order can be priced several ways:

• Fixed price.
• Time and materials.
• Allowance overage.
• Unit price.
• Estimate subject to reconciliation.
• Credit for deleted scope.

Ask which one applies.

Then ask:

• Does the price include labor, material, tax, freight, equipment, cleanup, and supervision?
• Does it include subcontractor markup and GC markup?
• Is the markup consistent with the contract?
• Are there credits for deleted or avoided work?
• Is there backup documentation: subcontractor quote, invoice, receipt, photo, drawing, field note, or selection confirmation?
• If time and materials, what rates apply and what cap prevents surprise billing?

A change order without backup may still be valid, but you should know what you are relying on before approving it.

Step 4: Ask about schedule impact every time

Even small changes can affect procurement, inspections, trade sequencing, or lender draws.

Ask:

• Does this change affect the substantial completion date?
• Does it affect any interim milestone?
• Does it require a permit revision, inspection, engineering review, or design decision?
• Does it depend on long-lead materials?
• Does the “no schedule impact” answer assume immediate approval?
• What happens if you approve after the stated deadline?

If the builder says there is no schedule impact, ask them to write that on the change order. If there is an impact, ask for the number of days and the affected milestones.

Step 5: Match the change to the contract

Before approving, open the original contract.

Check:

• Does the contract require written change orders?
• Who is authorized to approve them?
• Is email approval enough?
• Are verbal approvals binding?
• What markup is allowed?
• When is payment due?
• Are changes paid immediately, at the next draw, or at closeout?
• Does lender approval matter?

A change-order process that ignores the signed contract creates future ambiguity. If the contract says changes must be written and signed, do not let a text thread become the only record.

Step 6: Protect the draw file and lien record

If a change order increases cost, it may affect your next draw, lender budget, and lien waiver process.

Ask:

• Will this change appear as a separate line in the next draw request?
• Does the lender need to approve it?
• Will subcontractor lien waivers cover the changed work after payment?
• Is this change tied to a party that filed a Utah SCR preliminary notice?
• Does the final contract total update in your project record?

Lien waivers matter because they document payment rights as money moves through the project. AIA Contract Documents explains that lien waivers are often required as part of the payment process, and that conditional waivers usually become effective after payment is received while unconditional waivers can release rights when signed.

Useful background: AIA overview of lien waivers and releases.

Step 7: Decide, reject, or request revision

Do not treat every change order as approve-or-fight. Often the right answer is “revise and resubmit.”

Use these outcomes:

• Approve: scope, cost, schedule, authority, and backup are clear.
• Approve with clarification: minor missing detail is added before signature.
• Request revision: price, schedule, scope, or documentation is incomplete.
• Reject: change is not owner-caused, not authorized, duplicative, or inconsistent with contract.
• Escalate: legal, lender, inspector, designer, or engineering input is needed.

Fast red flags

Pause if the change order:

• Says “TBD” on cost or schedule.
• Has no backup for a large amount.
• Charges markup not described in the contract.
• Includes no credit for deleted work.
• Says no schedule impact but depends on long-lead materials.
• Was performed before approval without a clear emergency.
• Bundles unrelated changes so you cannot evaluate them separately.
• Uses vague scope language you could not inspect later.

The homeowner habit that prevents change-order chaos

Keep every change order in a single project record with the original contract, plans, selections, photos, lender draws, lien waivers, and closeout documents. The value is cumulative: the next decision is easier when the previous decision is easy to find.

Request a Build Risk Audit if you are still reviewing the original builder bid or construction contract and want a practical question list before you choose or sign.

Hank provides educational project-management support and AI-assisted checklists. Hank is not a law firm, attorney, lender, inspector, or licensed contractor. This is not legal, financial, or construction advice. For project-specific advice, consult a qualified Utah construction attorney, lender, inspector, or licensed professional.