Change Orders Explained: What San Diego Homeowners Should Know Before Remodeling

By Fares Azani, Licensed General Contractor -- CSLB #1054602 | Published April 28, 2026

If you are planning a kitchen remodel, bathroom renovation, or any significant construction project in San Diego, you will eventually encounter the term "change order." It is the single biggest reason remodeling projects go over budget, and most homeowners do not fully understand how they work until it happens to them.

Here is a straightforward guide based on what we see on actual job sites across San Diego County.

What Is a Change Order?

A change order is a written modification to the original construction contract. It changes the scope of work, the price, the timeline, or all three. Once both parties sign it, the change order becomes part of the contract.

Change orders are not inherently bad. Some are unavoidable. But understanding why they happen gives you the power to minimize them.

The 6 Most Common Causes of Change Orders in San Diego Remodels

1. Hidden Conditions Behind Walls

This is the most common and least preventable cause. When we open up walls in older San Diego homes (especially pre-1980s construction in areas like La Jolla, North Park, or Point Loma), we sometimes find:

• Dry rot or termite damage in framing
• Outdated or unsafe wiring (knob and tube, aluminum wiring)
• Galvanized or polybutylene plumbing that needs replacement
• Asbestos in drywall compound, flooring, or insulation
• Improper framing from previous unpermitted work

These conditions cannot be seen during the estimate phase. A good contractor includes a contingency allowance in their bid for exactly this reason.

2. Homeowner-Requested Changes During Construction

This happens more than people expect. Once demo is complete and you see the space opened up, you realize you want the island 6 inches wider, or you want to add an outlet where there was not one planned, or the tile you selected is backordered and you choose a different one that requires a different layout pattern.

Each of these is a legitimate change order. Small individually, but they add up.

3. Incomplete Design or Plans

If the project starts with rough sketches instead of detailed construction documents, gaps in the plan become change orders during construction. This is why we strongly recommend full design-build service: the design, engineering, and construction are coordinated by one team from the start.

4. Code Upgrades Required by the City

When you pull a permit for a kitchen or bathroom remodel, the city may require you to bring certain systems up to current code. Common examples in San Diego:

• Adding GFCI outlets in kitchens, bathrooms, and garages
• Upgrading the electrical panel if the existing one cannot support the new load
• Adding smoke and carbon monoxide detectors per current California code
• Meeting Title 24 energy requirements for new windows, insulation, or HVAC

5. Material Price Changes

If there is a long gap between your estimate and the start of construction, material prices may shift. Lumber, tile, and fixtures are all subject to supply chain fluctuations. A well-written contract addresses how material escalation is handled.

6. Subcontractor Coordination Issues

Occasionally, a specialty trade (HVAC, structural steel, custom cabinetry) identifies a conflict between the plan and the field conditions that requires an adjustment. This is more common on larger projects like whole-home remodels and ADU builds.

How to Minimize Change Orders

1. Finalize all selections before demo begins. Tile, countertops, fixtures, hardware, paint colors, appliances. Every selection made after framing costs more than the same selection made during design.
2. Get a detailed scope of work in writing. Your contract should list every line item. Vague contracts produce vague change orders.
3. Include a contingency in your budget. We recommend 10-15% for remodels of older homes, and 5-10% for newer homes.
4. Ask about the change order process before you sign. How will changes be priced? How quickly will you receive the change order document? What happens if you decline?
5. Work with a design-build contractor. When design and construction are under one roof, there are fewer communication gaps that lead to surprises.

What a Change Order Should Include

Every change order should be in writing and signed before the work is performed. It should include:

• A description of the change (what is being added, removed, or modified)
• The cost impact (additional cost or credit)
• The timeline impact (how many days this adds or subtracts)
• The reason for the change (homeowner request, hidden condition, code requirement)

Red Flags to Watch For

Not all contractors handle change orders fairly. Watch for these warning signs:

• Verbal-only change orders with no written documentation
• A contractor who gives a low initial bid and then piles on change orders (this is sometimes called "bid shopping")
• Change orders presented after the work is already done
• Refusal to provide line-item pricing on the change
• Pressure to approve immediately without time to review

Our Approach at Cali Dream Construction

We aim to minimize change orders through thorough pre-construction planning. When a change order is necessary, we present it in writing with full cost and timeline impact before any work is performed. Our clients always have the option to review, ask questions, and approve or decline.

Transparency is non-negotiable. You should never be surprised by a bill you did not agree to.

Cali Dream Construction -- Licensed General Contractor, CSLB #1054602. Serving all of San Diego County.