The Final Stretch: Change Orders and Walkthroughs

What Happens With A Change Order And Final Walkthrough?

Ever found yourself at the end of a renovation wondering why there are suddenly new costs or what exactly you should be looking for during that final walkthrough? You're not alone.

The closing stages of any home renovation can feel like navigating uncharted territory. In this illuminating episode, contractor Jeff Bass demystifies the often confusing world of change orders and final walkthroughs, providing honest guidance that both protects homeowners and ensures quality results.

Change orders—those modifications that fall outside your original contract—can arise from various situations: your design preferences evolve as the project progresses, unexpected issues emerge when walls come down, or you simply decide to expand the scope. Jeff reveals why transparent communication about potential changes must begin before the first hammer swings, explaining that early decisions minimize both cost impacts and timeline disruptions. He candidly addresses how some contractors strategically use change orders after low-balling initial bids, a practice he firmly rejects in favor of comprehensive upfront planning.

When it comes to final walkthroughs, Jeff walks us through the three critical elements every homeowner should examine: functionality (do everything work properly?), finishes (how do the aesthetic elements look?), and cleanup (has the space been properly restored?). With practical advice about creating effective punch lists and understanding the legal aspects of final payments, this episode equips you with the knowledge to confidently navigate your renovation's final stretch.

Whether you're planning your first renovation or have experienced the frustration of surprise costs and unresolved issues, this straightforward conversation provides the tools to ensure your project concludes as successfully as it began. Ready to transform your home with confidence? Listen now and discover how to master the critical final phase of your renovation journey.

To learn more about Remodel Contracting visit:
https://www.RemodelContracting.net
Remodel Contracting
801 Alpha Rd, Ste 133
Richardson, TX 75081
469-831-5620

Episode Transcript

Speaker 1 (00:04):
Welcome to the Remodel Contracting Podcast,
where outdated spaces meet theirmodern makeover destiny.
Hosted by Jeff Bass, generalcontractor, home renovation
expert and guy who firmlybelieves your avocado green
bathroom has gotta go.
Based in the DFW Metro, remodelContracting is here to help you
level up your living spaceBecause, hey, you updated your

(00:27):
wardrobe, now it's time toupdate your home.
Expect more, live better.
Let's remodel.

Speaker 2 (00:41):
Change orders and final walkthroughs are the last
mile of any renovation, but theycan make or break the
experience.
Jeff Bass explains how tohandle changes with clarity and
how to wrap up a project withconfidence.
Welcome back everyone.
I'm Sophia Yvette, co-host andproducer, back in the studio
with general contractor and homerenovation expert, jeff Bass.

(01:04):
Jeff, how's it going today?

Speaker 3 (01:06):
Doing wonderful.
I appreciate you having me heretoday, Sophia.

Speaker 2 (01:09):
Yeah, it's a pleasure to have you back on today.
Now, Jeff, let's talk about thefinal stretch of a renovation,
change order and finalwalkthrough.

Speaker 3 (01:19):
Absolutely.
That's a great thing to talkabout.
A lot of people are confusedabout about it, what a change
order is, and you know how thefinal walkthrough process works.
So first of all, let's definewhat a change order is.
Very simply, a change order isany work that is not included in
the original contract, and youmay be asking yourself well why

(01:39):
it wasn't included in theoriginal contract.
There's a lot of reasons.
One it could be an addition.
Maybe the client has wanted toadd on to the scope of the
project as we're moving along.
It could be a scope shift.
Maybe they've decided theyreally don't want that wall
there.
They want it removed inaddition to other work you're
doing, or unexpected issues.
I always tell people we don'tknow what's behind sheetrock

(02:02):
until we get behind thesheetrock.
Probably the most common one isremoving soffits, either in
kitchens or bathrooms.
Until we get inside there, wedon't know what's in the way.
So that's a change order Anywork not included in the
original contract, and thenwe'll talk about the final
walkthrough after we talk aboutchange orders.

(02:24):
What kind of questions do youhave about change orders, or
would you like me to just talkabout them for a little bit?

Speaker 2 (02:30):
Well, what exactly is a change order, and when does
it typically come into play?

Speaker 3 (02:36):
Okay, Okay, well, a change order can come into play
anywhere along the project'stimeline.
It could be that there's ahidden problem, maybe some
electrical problem or someplumbing problem or, you know,
like I said, even a designchange.
The client, you know, has theiroriginal vision.
As it's moving along haschanged.

(02:58):
Maybe they want to do somethinga little bit different.
I'll tell you the best thingfor a homeowner, for homeowner
driven change orders, is to makedecisions early.
The earlier a homeowner makes adecision, the less it's going to
have an effect on the project,whether that be money or time.
Also, homeowners should expectthe unexpected.

(03:20):
The homeowners should have acushion, a contingency in their
bid, I would say of at least 10%, so that way they can be
prepared if something unexpectedcomes up along the way.
And of course, there'sresponsibility on the contractor
side as well.
A contractor should explain whysomething is a change order and
not just an extra cost.

(03:41):
Explain why something is achange order and not just an
extra cost.
Contractors should documenteverything for clarity and
communication.
Change orders should always bein writing, never verbal.
The contractor and the clientshould discuss how it's going to
affect the cost and thetimeline impact, and both
parties should agree to thechange order.
Before the work takes place.

Speaker 2 (04:06):
Now let's get into communication.
I feel like we talk about thisquite a bit in your podcast.
How do you communicate changeorders to clients to avoid
confusion or surprise costs?

Speaker 3 (04:20):
science to avoid confusion or surprise costs.
Well, that starts at thebeginning of the project.
Like I used the example of asoffit removal.
For example, you go into thatold 70s bathroom and for some
strange reason, along the wallthe wall, you know it drops down
18 inches and there's like abox between the wall and the
ceiling.
That may be there for a purpose.
It may not be there for apurpose.

(04:42):
It may have an AC duct insideit which we can move, it may
have electrical which can bemoved or, you know, it could
have something in there thatcan't be, can't be relocated.
But you know, when we talkabout a project, I try to let
the homeowner know that thesethings may come up.
Well, this is a potential thingthat may come up in here, and

(05:02):
if it does, then this is howit's going to affect the project
, just like when you're doingthe very first walkthrough and a
homeowner says I want to movethis wall.
Okay, well, is it a load bearingwall?
Is it not a load bearing wall?
I haven't been in the attic, Ihaven't looked at the framing of
the house to tell you if it'sload bearing or not.
So the more we communicatethese things up front, the more
the contractor uses hisexpertise.

(05:23):
You know the contractor has afiduciary responsibility.
They are the expert, so theyhave a responsibility to share
that information that willaffect, or may affect the client
.
I mean, if I'm removing anon-load-bearing wall, it's not
a big deal at all.
If we're removing aload-bearing wall, it could mean
we need to install an extraheader or even an LVL if it's a
large space.
There's no telling.

(05:44):
But there are some things thatyou can have conversations with
the client up front to let themknow hey, this may happen, this
may be the case, not necessarily, but we won't know until we get
in there.
That way the client can beprepared and everything doesn't
come as a surprise as it arises.

Speaker 2 (06:02):
Are change orders likely in every project or only
certain projects?

Speaker 3 (06:07):
Well, I personally I'm not a fan of change orders
and you know I don't talk aboutbad contractors a whole lot, but
I will tell you, a lot ofcontractors use change orders as
a strategy to get projects.
They will low bid a projectjust to get in the door and then
just hit the client with changeorder after change order
because the client's alreadycommitted to them.

(06:29):
You know, I'm not a fan of that, I'm not a fan of change orders
.
I try to be as upfront aspossible, try to fully vet the
scope of work and you know, justso there's less surprises and
the client's prepared, right?
If I hit the client with a$3,000 change order, what if
they're not prepared for thatfinancial hit?
You know, um, if you come inwith a change order and you've

(06:51):
told the client, oh, it's goingto take four weeks to complete
the project, and then there's achange order that comes up and
now it's another two weeks andit's messed with the client's
timeline.
Maybe they were planning ongoing on vacation, who knows?
So you know, yeah, I'm not a fanof change orders.
I try to avoid them wheneverpossible.
That's why it's best to preparethe client up front so you can
avoid those change orders.
Now I probably have changeorders on maybe 15% of my

(07:14):
projects and it's always eithergoing to be because there was
something we didn't know.
You know we busted open somesheetrock and there's some DIY
electrical going on in there.
You've got exposed wiring oryou've got a.
You know, a client wanted toremove a wall but we get in
there and there's a main ventstack in there.
Can't move it, things like that.

Speaker 2 (07:37):
So you know they're going to happen, but I would say
, in my experience only about15% of the time.

Speaker 3 (07:44):
And on that note, let's get into the final
walkthroughs.
Know, let's get into the finalwalkthroughs.
Perfect, okay, finalwalkthrough.
So final walkthrough is whenthe project has reached
substantial completion, not ahundred percent completion, but
substantial completion.
So final walkthrough confirmsthe project matches the agreed
scope before the final paymentis made.
And in the state of Texas, acontractor is required to

(08:06):
withhold 10% or the sorry, theclient is required to withhold
10%.
So a contractor is not allowedto collect the final 10% of
payment until project completion.
And so the final walkthrough iswhen the contractor and the
client walk through the projectand look for things that need to
be touched up, and thosetouch-up items is called a punch

(08:27):
list.
Okay, so the final walkthroughis where we make that punch list
.
Checklist items would includefunctionality, finishes and
cleanup.
So functionality doors, windows, electrical plumbing is
everything that you did working?
That's the utility part of it.
Finishes the aesthetic part.
Is the paint done?
Does it need a third coat ofpaint?
Do the two coats of paintreally cover up the old avocado

(08:51):
green paint you had on the walls, the trim work, the fixtures?
And cleanup is everythingcleaned up properly, everything
put back to where it was beforeyou started the project?
And so those are things youwant to check and then, working
through the punch list, thecontractor has a responsibility
to have.
Again, like I said, substantialfinished work right, no big
unresolved issues, just smalltouch-ups left to be done and

(09:15):
Tips for the homeowner.
Review your contract when doingthe walkthrough.
Don't rush but don't benitpicky either.
You know Phrase that I say ispo-buddies-nerfect.
You know, nobody is perfect.
No project is going to beperfect.
There's always going to besmall imperfections and, of
course, but you know it wouldneed to be things that you could

(09:36):
live with, right Forcontractors.
Be proactive, fix visibleissues before the walkthrough.
What I personally like to do, Ilike to do a walkthrough with my
project manager and my crewlead before doing it with the
client.
That way the punch list issmaller for the client and the
client doesn't feel like, oh myword, nothing's completed Right.
So the more eyes we have on itthen the smaller that punch list

(09:59):
is going to be and the happierthe client is going to be and
the sooner the contractor isgoing to be able to collect that
final 10 percent payment goingto be and the sooner the
contractor is going to be ableto collect that final 10%
payment.
You know, and making thatstrong final impression also
will lead to more referralbusiness for the contractor,
because then the client's goingto be happy to refer them to

(10:20):
their friends and family, youknow.
So wrapping up, change ordersand final walkthroughs A change
order so wrapping up changeorders and final walkthroughs a
change order is aboutcommunication and documentation.
Final walkthrough is aboutaccountability and trust.

Speaker 2 (10:39):
Both are opportunities to finish a
project well and to protect andto build strong relationships.
Wow Well, Jeff, thank you somuch for walking us through the
wrap-up phase.
Your process really helpshomeowners to feel empowered.
We'll see you next time on theRemodel Contracting Podcast.

Speaker 3 (10:56):
Thank you, sophia, have a great afternoon.

Speaker 1 (11:00):
That's a wrap for this episode of Remodel
Contracting Podcast.
Ready to kick that 90s kitchento the curb?
For a free in-home consultation, call 469-831-5620 or visit
remodelcontractingnet.
Expect more, because your homedeserves better and, honestly,

(11:21):
so do you.