Change Orders in Construction: What They Are, Why They Happen, and How to Avoid Budget Surprises

If you’ve heard scary stories about change orders, you’re not alone.

Many homeowners worry that a “change order” means:

the budget is about to blow up
the builder messed up
the project is spiraling out of control

But the truth is:

Change orders are normal in custom home construction.

What matters most is how they’re handled.

Let’s break down what change orders are, why they happen, and how to avoid the most common budget surprises.

What Is a Change Order?

A change order is a written change to the original scope of work.

It typically includes:

what is changing
why it’s changing
the cost difference (add or deduct)
any schedule impact
homeowner approval before work proceeds

Change orders exist for one reason:

So everyone stays aligned and protected.

Why Change Orders Happen (The Most Common Reasons)

Change orders usually fall into one of these categories:

1) The Homeowner Changes Their Mind

Examples:

switching flooring
adding built-ins
upgrading fixtures
changing paint or trim details
modifying layout elements

Totally normal—custom homes are personal.

2) Selections Weren’t Finalized Early Enough

If decisions are delayed, the project can require changes once construction is underway.

3) Site Conditions Require Adjustments

Sometimes conditions aren’t fully known until work begins:

soil issues
drainage challenges
utility conflicts
structural modifications

4) Scope Gaps (Something Wasn’t Included Clearly)

This is the big one that causes frustration.

If a homeowner thought something was included and it wasn’t, it creates stress.

This is why clear documentation matters from the beginning.

The Real Problem Isn’t Change Orders… It’s Surprise Change Orders

A well-run project can have change orders without feeling chaotic.

But when change orders are:

frequent
unclear
rushed
not forecasted
not tracked properly

They create stress.

A good builder’s job is to prevent surprises and communicate clearly before costs hit.

How to Avoid Change Order Stress (What We Recommend)

1) Lock in Key Decisions Early

The earlier selections are made, the fewer changes happen during construction.

This improves:

budget accuracy
schedule consistency
ordering lead times

2) Make Sure Your Budget Is Transparent

If you’re building cost-plus, change orders still matter—but the goal is the same:

Clarity and documentation.

You should always know what’s changing and why.

3) Work With a Builder Who Has a Clear Process

The best projects aren’t “perfect.”

They’re well managed.

A strong process includes:

clear scope definitions
documented changes
approval before work begins
regular budget reviews

Our Philosophy: Change Orders Should Feel Clear, Not Stressful

At Mark Scott Homes, we believe homeowners deserve a building experience that feels:

✔ organized
✔ transparent
✔ professional
✔ calm
✔ enjoyable

Change orders happen—but surprises shouldn’t.

If you’re considering building a custom home in Southwest Michigan or Northern Indiana, we’d love to walk you through our process and help you plan with confidence.

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