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How Is Change Order Pricing Handled in Restoration Projects?

Last updated October 23, 2026

The short answer

Understanding Change Orders in Water Damage Work

A change order is a documented amendment to the original restoration contract. It outlines the exact change in work, the reason for it, and the adjusted price. This document protects both you and the pros by ensuring everyone agrees on new tasks. It moves the project forward with clear expectations.

Change orders are common when hidden damage is found behind walls or under floors. They also apply if you decide to add services, like restoring antiques or electronics. The key is that no extra work begins until you approve the change order. This keeps your project organized and financially transparent.

Typical Reasons for Change Orders

The most frequent trigger for a change order is discovering more damage. Water can travel far from the original leak, damaging subfloors or wall cavities. The pros cannot know the full extent until they open up the affected area. At that point, a change order formalizes the necessary additional drying or repair.

Your own decisions can also lead to change orders. You might choose to upgrade materials or expand the repair area. Perhaps you want to include artwork or delicate electronics restoration not in the first plan. Each of these changes requires a new agreement to cover the different labor and materials.

  • Finding hidden mold or structural rot behind drywall.
  • Deciding to restore personal belongings like antiques or books.
  • Upgrading flooring or cabinetry materials during repairs.
  • Adding air scrubbing or specialized drying for a larger area.
  • Addressing secondary damage in an adjacent room or unit.
  • Incorporating preventive measures, like adding a vapor barrier.

How the Pricing Is Determined

Pricing for a change order is not arbitrary. The pros calculate the cost of additional materials, extra labor hours, and any needed equipment rental. They typically provide a line-item breakdown so you can see what you are paying for. This cost is added to the original project total, creating a new contract sum.

The cost depends heavily on the change's complexity. Restoring a water-logged painting requires different skills and materials than replacing drywall. A change order for a large commercial space, like a store or restaurant, will involve different scales of cost than one for a home. Always review the detailed estimate within the change order.

The Approval Process for Homeowners

You must formally approve a change order before work continues. The pros should present you with a written document to sign. Do not give verbal approval. Taking time to read and understand the new charges and scope is crucial. Ask for clarification on any line item that seems unclear.

Once you sign, the change order becomes a legally binding part of your contract. It authorizes the pros to do the new work and obligates you to pay the adjusted amount. Keep a copy of every signed change order with your original contract. This paperwork is essential for managing your budget and for any insurance claim discussions.

Change Orders and Your Insurance Claim

If your project is insurance-funded, change orders must often be submitted to your adjuster. The pros can provide the documentation, but you are responsible for communicating with your insurer. Send the change order to your adjuster and request approval for the added coverage. Policies vary, and your insurer decides what is covered.

Do not assume supplemental damage found later is automatically covered. Your insurer needs to assess the cause and scope. Some policies have limits on certain types of content restoration, like for a museum piece or library book. Proceeding without insurer approval could leave you responsible for the extra cost.

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Frequently asked questions

Can I refuse a change order?

Yes, you can refuse. This means the pros will not perform the extra work described. They will only complete the original scope. Be aware that refusing necessary repairs for hidden damage may leave your property at risk for mold or structural issues.

How quickly do I need to approve a change order?

You should review it promptly to avoid project delays, but never feel rushed. Water damage mitigation requires quick action, so a delay in approval can allow secondary damage. Read the document thoroughly, ask questions, and sign only when you understand and agree.

What if the final cost is different from the change order?

A properly written change order sets a fixed price for the added scope. The final cost should not exceed that unless you approve yet another change. If costs differ significantly without a new agreement, discuss it with the pros immediately to resolve the discrepancy.

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