How do I manage change orders so costs don't spiral out of control?

Change orders are inevitable in construction, but managing them properly protects both your budget and timeline. The key is establishing clear processes upfront and maintaining detailed documentation throughout your New Brunswick project.

Start with a comprehensive contract that defines exactly what's included in the base scope. Your initial agreement should specify materials by brand and model (not just "standard fixtures"), include detailed drawings or specifications, and establish a formal change order process. Under New Brunswick's Construction Remedies Act, having everything in writing protects both parties if disputes arise.

The most effective approach is requiring written approval before any change work begins. When your contractor identifies additional work needed—whether it's unexpected structural issues in your 1970s Moncton split-level or upgraded finishes you decide you want—insist on a written change order that includes the exact scope, materials, labor costs, and timeline impact. Never allow verbal approvals for cost changes, no matter how small they seem.

Build a contingency fund of 15-20% of your total budget specifically for changes and unforeseen issues. New Brunswick's older housing stock often reveals surprises once walls are opened—from knob-and-tube wiring in Victorian-era Fredericton homes to moisture issues in basement renovations due to our clay soils and high water tables. Having funds set aside prevents you from making rushed decisions when issues arise.

Establish pricing frameworks upfront for common change scenarios. Your contract should include hourly rates for additional labor, markup percentages on materials, and how permit modifications will be handled. If you're renovating in Saint John and discover your 1920s home needs electrical upgrades to meet current code, you'll already know how additional electrical work will be priced rather than negotiating under pressure.

Track everything in real-time using a simple spreadsheet or project management app. Record each change order with date, description, cost, and running total. This prevents the shock of discovering you've approved $15,000 in changes over six weeks of small decisions. Review your change order log weekly and compare it to your remaining contingency.

Distinguish between necessary and optional changes when they arise. Code compliance issues, structural problems, or permit requirements aren't optional—but upgrading from laminate to quartz countertops is. When your contractor discovers that your Riverview home's foundation needs waterproofing work, that's necessary. When you decide you want pot lights added to the living room, that's optional and can potentially be deferred.

For larger projects, consider having your contractor provide unit pricing for common upgrades at the contract stage. If you're doing a kitchen renovation, get pricing for upgrading cabinet hardware, adding under-cabinet lighting, or switching to higher-end appliances. This eliminates negotiation delays and prevents inflated pricing when you're already committed to the project.

Review and approve change orders promptly to avoid delaying your project. Your contractor may need to order materials or schedule additional trades, and delays in approval can push back completion dates. However, don't feel pressured to approve changes on the spot—take time to understand the necessity and explore alternatives.

The next practical step is reviewing your current contract (if you have one) or creating a change order clause for your upcoming project. Specify that all changes require written approval, include pricing methodology, and establish a maximum total for changes without additional contract amendments. This upfront planning prevents most cost overrun scenarios.