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How Does a Restoration Company Handle Change Orders?

Last updated October 23, 2026

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The short answer

What Is a Change Order?

A change order is a formal amendment to your original work agreement. It is issued when unforeseen conditions require additional repairs, or if you request extra services beyond the initial plan. This document becomes a binding part of your contract. It prevents misunderstandings by clearly stating what new work will be done and why it is necessary.

The pros create this form to document the scope change officially. It should reference your original job and describe the deviation in detail. You will need to approve it before any new work begins. This step ensures transparency and keeps the project's financial and legal records accurate.

Common Reasons for Changes

Water damage often hides problems behind walls or under floors. The initial inspection might not reveal all the damage. Once the pros start drying and removing materials, they may find more wet insulation, rotted framing, or hidden mold. These discoveries are a primary reason for issuing a change order.

Homeowners can also request changes. You might decide to upgrade materials during the repair, like choosing tile instead of laminate flooring. Or, you may want to address a long-standing issue discovered during the work, such as replacing old plumbing. Any alteration to the agreed-upon plan should prompt a change order.

The Approval and Sign-Off Process

You must review the change order carefully before signing. Ensure it clearly describes the new work, the associated costs, and the impact on the project timeline. Do not feel pressured to sign on the spot. It is reasonable to take a moment to understand the document and ask clarifying questions.

Once you sign, the pros have your authorization to perform the added work. Keep a copy of the signed change order with your original contract. This is crucial for your records, especially if you are filing an insurance claim. Your insurer will need documentation for any supplemental payments.

Managing Costs and Your Budget

Change orders almost always affect the project's final cost. The document should break down the price for labor, materials, and any extra equipment rental. Costs can vary widely, but additional drying for hidden moisture or replacing structural wood often adds hundreds to thousands of dollars. The final price depends on the extent of the hidden damage.

Discuss the financial impact openly with the project manager. Understand how the change order alters your payment schedule. If you have insurance, you will need to submit the change order to your adjuster for review. Policies vary, and your insurer decides what is covered. Be prepared that some upgrades or pre-existing conditions may not be covered.

Protecting Your Interests

A proper change order process protects you from surprise bills and scope creep. It provides a clear paper trail for the entire restoration project. This is vital for your own financial planning and for any dealings with your insurance company. Without this documentation, resolving disputes over what was agreed upon becomes very difficult.

Do not proceed with added work without a signed change order. If the pros suggest skipping this step, it is a red flag. Reputable professionals use these documents to ensure a fair and transparent working relationship. They are a standard business practice in the restoration industry for good reason.

  • Always get changes in writing, never just a verbal agreement.
  • Verify the change order includes a detailed description, not just a dollar amount.
  • Ask how the new work affects the project completion date.
  • Keep every signed document in one dedicated folder.
  • Communicate any concerns about the change before you sign.
  • If you live in Chandler, keep your insurance policy and agent's contact info handy.

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Frequently asked questions

Does a change order delay my repairs?

It can, as new work needs to be scheduled and materials may need ordering. The change order should note any revised timeline. However, addressing hidden damage immediately prevents longer delays and more severe problems later.

Can I negotiate the price on a change order?

You can discuss the costs. Ask for a breakdown of labor and materials. Prices for extra work are often based on standard rates, but you have the right to understand the charges before you agree to them.

What if I don't agree with the change order?

Do not sign it. Discuss your concerns with the project manager. You have the right to seek a second opinion from another qualified professional before authorizing additional work on your home.

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