Your Change Order Policy

You have one, even if you don't. Use your policy, not your contractor's.

March 01, 2025 • Estimated Reading Time: 5 minutes

In partnership with

Smart Investors Are Betting On A.I. Stocks—Are You?

Experts say Trump’s $500B A.I. investment plan could transform the industry.

Meanwhile, a small but ambitious A.I. healthcare company just went public after eight years of innovation, securing $18M in funding and partnering with industry giants.

With a $120M market cap and shares still under $2, this stock may not stay cheap for long.

CHANGE ORDERS

It is rare to make it through a property rehab without discovering needed work that was not in the original bid. It's why all rehab budgets should have a contingency amount built in. This new work is covered by your Change Order Policy. Trust us when we say, "you have a policy." If you don't articulate your own, your contractor will do their thing and that will be your policy for that project. You don't want this. Articulate your own policy, communicate it in advance, include it in your construction agreement, and ENFORCE it. Here's a sample for you

SAMPLE POLICY

OWNER may make changes to the Services from time to time during the term of this Contract. However, any such change or modification shall only be made in a written "Change Order" which is signed and dated by both parties. Such Change Orders shall become part of this Contract. OWNER agrees to pay any increase in accordance with our payment policy as a result of any written, dated and signed Change Order and CONTRACTOR agrees to accept any decrease that may result from such Change Order. In the event the cost of a Change Order is not known at the time a Change Order is executed, CONTRACTOR shall make a good faith effort to estimate the cost thereof and OWNER shall pay the actual reasonable cost in excess of the estimated cost. 

In the event of unforeseen required work not covered by the bid or this agreement and that work being mission critical and the total cost being less than $500.00, CONTRACTOR must notify owner of changes needed and may proceed with the required work. The maximum amount to be paid on any issue (including similar issues discovered in the project or additional issues discovered while addressing this issue) is $500 in the aggregate. Any non-mission critical issue or any item requiring more than $500 in additional expenses must be reported and a change order executed before payment will be made.

ALL ADDITIONAL WORK PERFORMED WITHOUT CHANGE ORDERS WILL BE CONSIDERED PART OF THE ORIGINAL BID AND WILL RESULT IN NO ADDITIONAL PAYMENT.

He has flipped over 2000 houses, written an international #1 best seller, and produced more than 600 podcasts. People are talking about Roger Blankenship’s training. Click here for a sampling of what they are saying. Get a real estate investing coach for life from one of America’s most experienced investors. No subscription. One payment. Now 67% off. Only a few spots available. Click here to check it out and apply today.