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PSA: I just added up my change orders from the last 3 custom builds and it came to $71,400
I run a small custom home building company out of Asheville and I finally sat down with my bookkeeper to total up all the change orders from my three most recent projects. The number came out to $71,400 across those three houses, which is way more than I guessed. What got me was that almost half of it was stuff the clients asked for after framing started, not hidden costs I missed on my end. Things like moving a wall 18 inches, adding a window in the stairwell, upgrading the kitchen counters twice, and switching the whole house to a different trim package. I keep a pretty tight spec sheet and I walk every client through allowances before we sign, but somehow we still end up here every single time. Part of me thinks it is just how custom building works, and part of me thinks I am bad at saying no when someone asks for one more thing. I am not even counting the two weeks of schedule slip each change caused, which cost me more in crew standby and rental equipment. If you build customs, what is your average change order total per house, and do you charge a fee for each one or just pass the cost through?
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elliot_grant3812d ago
I heard a contractor on a podcast say his change orders run about 8 to 12 percent of the contract price and that's just normal. Half of yours came after framing which tracks with what he said, people can't picture a space until they're standing in it. Charging a flat fee per change order is the only thing that ever slowed his clients down.
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