Change Orders: How to Handle Scope Changes Without Getting Burned
Every renovation encounters surprises. Hidden water damage behind a wall. A homeowner who decides they want a different tile. A building inspector who requires additional fire stopping. These scope changes are normal, but without a proper process, they become the leading cause of renovation disputes in Ontario.
What Is a Change Order?
A change order is a written document that modifies the original scope of work, price, or timeline of a renovation contract. It must be signed by both parties before the additional work is performed.
A proper change order includes:
| Element | Description |
|---|---|
| Change description | Specific description of what is being added, removed, or modified |
| Reason for change | Why the change is necessary or requested |
| Price impact | Additional cost or credit, with breakdown |
| Timeline impact | How the change affects the completion date |
| Payment terms | When the additional amount is due |
| Signatures | Both homeowner and contractor must sign |
Without a signed change order, the contractor has no legal basis to charge more, and the homeowner has no guarantee the work will be done.
Why Change Orders Matter Under Ontario Law
The Consumer Protection Act requires that contract changes be documented in writing. Verbal agreements for additional work are not enforceable against the homeowner.
This means:
The Written Approval Process
A professional change order process follows these steps:
The key rule: **no work before signatures**. Any contractor who says "we will figure out the price later" is creating a dispute waiting to happen.
How to Evaluate Price Adjustments
Change order pricing can be calculated two ways:
Unit Pricing
Agreed-upon rates for specific work items, established at the start of the project:
| Item | Unit Rate |
|---|---|
| Electrical outlet addition | $250 per outlet |
| Pot light installation | $175 per light |
| Drywall repair | $8 per sq ft |
| Plumbing fixture relocation | $450-$800 per fixture |
| Framing modifications | $65 per linear foot |
Unit pricing is transparent and easy to verify.
Lump Sum
A fixed price for the entire change, based on the contractor's estimate. More common for complex changes that are difficult to break into units.
**Best practice:** Request unit pricing where possible, and lump sum only for complex, multi-trade changes.
Markup on Materials
Contractors typically apply a 10-20% markup on materials for change orders. This is standard and covers procurement time and overhead. Your contract should specify the agreed markup percentage upfront.
Timeline Impact
Every change order should state how it affects the completion date. Common impacts:
Your contract should include a clause that states: "The completion date shall be extended by the number of days required to perform approved change orders."
Red Flags in Change Order Practices
Watch out for:
Protecting Yourself
For Homeowners
For Contractors
Sample Change Order Clause
Your renovation contract should include language similar to:
"All changes to the agreed scope of work must be documented in a written Change Order, signed by both the Homeowner and Contractor, before the additional work is performed. Each Change Order shall include a description of the change, the impact on the project timeline, and the additional cost or credit. Verbal agreements for additional work are not binding. The Contractor shall not perform, and the Homeowner shall not be obligated to pay for, any work not covered by the original contract or a signed Change Order."
For more on protecting yourself during renovations, see our article on [Renovation Scams Exposed](/blog/renovation-scams-exposed). Generate a contract with a built-in change order process using our free [Contract Generator](/contracts).
