How Are Change Orders Handled During Renovations?

Table of Contents

• The Two Types Of Change Orders
• Why Pre-Construction Diligence Is the Real Answer
• When a Legitimate Change Order Is Warranted
• Scope Changes vs. Changes in Means and Methods
• What This Looks Like at Gallery KBNY
• Frequently Asked Questions About Change Orders in NYC Renovations

If you've ever been mid-renovation and received an unexpected invoice for work that wasn't in your original contract, you already know how disorienting that experience can be. Change orders are one of the most common sources of friction between homeowners and contractors. In New York City, where renovation projects involve more moving parts than almost anywhere else in the country, understanding how they work before your project starts is most of a must than a maybe.

The good news: a well-run renovation with a transparent contractor should have very few. Here's how.

[#1]The Two Types Of Change Orders[#1]

Not all change orders are created equal. In practice, they fall into two distinct categories, and the difference is vital in protecting your budget before you ever put pen to paper.

Client-Initiated Change Orders 

These happen when you decide to modify the scope of work. Maybe you upgrade your countertop material mid-project, reconfigure a layout after demolition reveals an opportunity, or add a powder room that was not in the original plan. These are your call, and they are completely normal. What should happen next is straightforward: your contractor issues a formal written change order that clearly outlines the revised scope, any additional costs, any impact on the schedule, and (just as importantly) any credits owed for work removed from the original scope. The net impact should always be visible and accounted for, not buried.

Contractor-Initiated Change Orders 

These are a different animal altogether. These are presented when a contractor claims additional work is necessary to complete what was already agreed upon. While these do happen in the industry, they should be relatively rare on a well-planned project. If you are receiving a steady stream of contractor-initiated change orders, that is less a sign of bad luck and more a sign of inadequate pre-construction planning. Or worse, a contractor who low-balled the original estimate with every intention of making it up later. In New York City, this pattern is unfortunately common enough to warrant real scrutiny when evaluating proposals.

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[#2]Why Pre-Construction Diligence Is the Real Answer[#2]

The single best defense against surprise change orders is thorough pre-construction investigation, and in New York City co-ops and condos specifically, this step is especially important. Every building has a unique alteration agreement with various quirks and at least one or two skeletons. A responsible contractor should be doing the following before a single wall comes down:

Understanding Building-Specific Requirements 

Think work-hour limits, waterproofing standards, plumbing rules, and construction duration restrictions all vary by building and need to be accounted for in the original scope and timeline.

Verifying Electrical capacity

Confirming whether the proposed scope will require a service upgrade before the project is priced, not after demolition reveals the panel is decades out of date.

Confirming Gas & Plumbing Locations

If possible, determine whether any proposed relocations are actually feasible under building and code constraints before those moves are promised to you. At Gallery, we often help our clients assess these underlying issues ahead of renovation (or purchase of the unit, prior to renovation), just to make sure they understand what the implications are from a cost and design perspective.

Probing Walls & Ceilings

Any surfaces scheduled for demolition should be investigated in advance for hidden obstructions or structural conditions that could affect scope or cost.

Testing For Asbestos

Asbestos tests must be done in all areas affected by the renovation, and evaluating whether abatement is required or whether alternative approaches exist that could reduce cost and disruption.

Walking The Apartment With Client

Especially on non-gut renovations, we find it vital to walk through the space with clients to identify existing conditions requiring attention before work begins. Think of it as the renovation equivalent of a pre-flight checklist. You want to know about any turbulence before you’re airborne.

When these steps are properly executed, the vast majority of cost-impacting surprises are eliminated before they have a chance to become change orders.

[#3]When a Legitimate Change Order Is Warranted[#3]

Even the most thorough pre-construction process cannot account for everything. Truly unforeseen conditions do occasionally arise, and when they do, a legitimate change order is entirely appropriate. The key word is transparency.

A well-structured change order for an unforeseen condition should include a clear written explanation of why the additional work is required, the specific cost associated with that work, and any impact on the project schedule. What it should not include is vague language, unexplained line items, or pressure to approve quickly before you have had time to review.

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[#4]Scope Changes vs. Changes in Means and Methods[#4]

This distinction is worth knowing before you ever sign a contract. If a contractor has agreed to deliver a specific outcome, the way they choose to execute that outcome is their problem to solve, not yours. Adjustments in how work is performed to achieve agreed-upon deliverables should not automatically become a change order.

Only work that materially alters the agreed-upon scope should trigger one. If your contractor cannot clearly articulate why a change order represents a genuine change in scope rather than a change in their approach, push back and ask for a detailed explanation in writing.

[#5]What This Looks Like at Gallery KBNY[#5]

At Gallery KBNY, we are an award-winning, full-service design-build firm in New York City with a comprehensive approach to renovations in Manhattan and Brooklyn that includes everything from interior design and architecture to board approvals, DOB permits, and construction management. Our pre-construction process is specifically designed to surface the conditions and building requirements that generate surprise change orders elsewhere — before your project is priced, not after demo.

Change orders happen in this industry, especially in a city layered, dated, and generally complex as New York City. The difference is whether your contractor treats them as a revenue opportunity or a last resort.

Considering a renovation in New York City? View our portfolio of NYC apartment renovation before and afters, learn more about Gallery KBNY, or contact us today.

Gallery KBNY is an award-winning, full-service design-build firm in New York City with a comprehensive approach to renovations in Manhattan and Brooklyn that includes everything from interior design and architecture services to board approvals/permits and construction/site management. We’re experts in pre-war renovations, apartment combinations, room creations, full gut renovations and all that falls in between. Let us bring your dream home to life.

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[#6]Frequently Asked Questions About Change Orders in NYC Renovations[#6]

What Is A Change Order In A Renovation? 

A change order is a formal written document that modifies the original scope, cost, or timeline of a renovation contract. Change orders can be initiated by the client when the scope is voluntarily modified, or by the contractor when additional work is claimed to be necessary to complete the agreed-upon deliverables.

Are Change Orders Normal During A Renovation?

Client-initiated change orders are common and expected, particularly on larger projects where design decisions evolve. Contractor-initiated change orders should be relatively rare on a well-planned project. A high volume of contractor-initiated change orders is often a sign of insufficient pre-construction planning or an underpriced original estimate.

How Should A Change Order Be Documented? 

Every change order should be issued in writing and include a clear description of the revised scope, the associated cost, any schedule impact, and any credits for work removed from the original scope. Verbal agreements are not sufficient.

What Is The Difference Between A Change In Scope And A Change In Means And Methods? 

A change in scope means the agreed-upon deliverables have materially changed. A change in means and methods refers to how a contractor chooses to execute work already included in the contract. Adjustments in execution approach should not trigger a change order — only genuine changes to what is being built or delivered should.

How Can I Reduce The Likelihood Of Change Orders On My NYC Renovation? 

Work with a contractor who conducts thorough pre-construction investigation, including asbestos testing, electrical capacity verification, plumbing confirmation, wall probing, and a full review of your building's alteration agreement before finalizing scope and pricing. The more due diligence performed upfront, the fewer surprises arise mid-project.

What Is A Design-Build Firm And How Does It Handle Change Orders Differently? 

A design-build firm manages both design and construction under a single contract, which means the team pricing your project is the same team building it. This integrated model creates stronger accountability around scope definition and change order management than a traditional design-bid-build approach, where design and construction are handled by separate parties who may have different financial incentives.

How Much Does A Full Apartment Renovation Cost In NYC? 

Costs vary significantly based on scope, building type, and finish level. A full gut renovation of a NYC apartment typically starts in the mid-six figures and can range considerably higher depending on size and complexity. A reputable, full-service renovation contractor should be able to provide realistic cost ranges during an initial consultation — before any commitment is made.

For more information, read 10 Questions To Ask A NYC General Contractor Before Hiring.