Change Orders

Signing a contract with your builder for a brand new home is the culmination of an exciting process. You have found the home you want and made the commitment to go ahead with the purchase. You may have made minor changes to the builder's plans to better suit your needs. And you have chosen the all the features that will go into your new home. In some instances, though, this may not be the end of your decision-making.

A visit to the lighting supplier may trigger a desire for security lighting not included in the contract for your new home. You may decide to go for the fireplace after all or to enlarge the foyer after seeing working drawings. Or you may simply want more electrical outlets.

Builders will gladly attempt to accommodate any changes or additions you want to make before construction of your home begins, or even when it is in progress. But before you make any decisions, talk with your builder.

  • Sometimes even small changes can have a significant impact on cost or scheduling, particularly if construction is already under way. It may mean changing some aspect of the construction-for instance, a change in floor coverings may call for a different sub-flooring.
  • Changes can also result in delays. A professional new home builder works with a tight construction schedule and subtrades who move from one task to another and one home to another according to a timetable.
  • It is crucial that all changes or additions are documented as written change orders and signed by both parties. This eliminates misunderstandings and ensures that everyone, from the people in the sales office to the site crew, knows what has been agreed to.
  • Change orders are considered extras to the contract. Ask your builder to explain how you are expected to pay for them. Adjustments may be made to the outstanding balance due on closing date, you may be charged separately later, or the cost could be added to a scheduled construction draw.


Source: Canadian Home Builders' Association