Glossary
Change order
A change order is a written change to the agreed scope of work, with its added cost and extra days. Once approved, it raises that line's budget and can push the finish date.
Rehabs rarely go exactly to plan. Rot behind a wall, an upgrade you decide on mid-job, or an inspector's request all change the work. A change order puts the new scope, price and time in writing before the work happens.
Without one, you find out about the extra cost when the invoice arrives.
How it works
In Run The Deal's project management, you add a change order with what changed, why, the cost and the extra days. You approve it or save it as waiting. Approved cost raises the line's budget, and approved days push the finish date. Overruns use up contingency first; past that, they come out of profit.
- Kitchen line budget
- $18,000
- Change order: subfloor repair
- $2,400 and 3 days
- New kitchen line budget
- $20,400
- Contingency (10% of a $50,000 rehab)
- $5,000
- Contingency left
- $2,600
- Extra carry (3 days at $70 a day)
- $210
Common mistakes
- Approving changes by text with no price. Get the cost and days in writing first.
- Ignoring the days. Extra time adds carry and can push past a loan maturity.
- Treating every change as required. Separate must-fix items from nice-to-have upgrades.
If the change sits on the critical path, the whole job finishes later. Build your plan with the fix and flip budget template.
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