Remodel Contracting Podcast

The Final Stretch: Change Orders and Walkthroughs

• Jeff Bass • Episode 10

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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
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Richardson, TX 75081
469-831-5620

Speaker 1:

Welcome to the Remodel Contracting Podcast, where outdated spaces meet their modern makeover destiny. Hosted by Jeff Bass, general contractor, home renovation expert and guy who firmly believes your avocado green bathroom has gotta go. Based in the DFW Metro, remodel Contracting is here to help you level up your living space Because, hey, you updated your wardrobe, now it's time to update your home. Expect more, live better. Let's remodel.

Speaker 2:

Change orders and final walkthroughs are the last mile of any renovation, but they can make or break the experience. Jeff Bass explains how to handle changes with clarity and how to wrap up a project with confidence. Welcome back everyone. I'm Sophia Yvette, co-host and producer, back in the studio with general contractor and home renovation expert, jeff Bass. Jeff, how's it going today?

Speaker 3:

Doing wonderful. I appreciate you having me here today, Sophia.

Speaker 2:

Yeah, it's a pleasure to have you back on today. Now, Jeff, let's talk about the final stretch of a renovation, change order and final walkthrough.

Speaker 3:

Absolutely. That's a great thing to talk about. A lot of people are confused about about it, what a change order is, and you know how the final walkthrough process works. So first of all, let's define what a change order is. Very simply, a change order is any work that is not included in the original contract, and you may be asking yourself well why it wasn't included in the original contract. There's a lot of reasons. One it could be an addition. Maybe the client has wanted to add on to the scope of the project as we're moving along. It could be a scope shift. Maybe they've decided they really don't want that wall there. They want it removed in addition to other work you're doing, or unexpected issues.

Speaker 3:

I always tell people we don't know what's behind sheetrock until we get behind the sheetrock. Probably the most common one is removing soffits, either in kitchens or bathrooms. Until we get inside there, we don't know what's in the way. So that's a change order Any work not included in the original contract, and then we'll talk about the final walkthrough after we talk about change orders. What kind of questions do you have about change orders, or would you like me to just talk about them for a little bit?

Speaker 2:

Well, what exactly is a change order, and when does it typically come into play?

Speaker 3:

Okay, Okay, well, a change order can come into play anywhere along the project's timeline. It could be that there's a hidden problem, maybe some electrical problem or some plumbing problem or, you know, like I said, even a design change. The client, you know, has their original vision. As it's moving along has changed. Maybe they want to do something a little bit different. I'll tell you the best thing for a homeowner, for homeowner driven change orders, is to make decisions early.

Speaker 3:

The earlier a homeowner makes a decision, the less it's going to have an effect on the project, whether that be money or time. Also, homeowners should expect the unexpected. The homeowners should have a cushion, a contingency in their bid, I would say of at least 10%, so that way they can be prepared if something unexpected comes up along the way. And of course, there's responsibility on the contractor side as well. A contractor should explain why something is a change order and not just an extra cost. Explain why something is a change order and not just an extra cost. Contractors should document everything for clarity and communication. Change orders should always be in writing, never verbal. The contractor and the client should discuss how it's going to affect the cost and the timeline impact, and both parties should agree to the change order. Before the work takes place.

Speaker 2:

Now let's get into communication. I feel like we talk about this quite a bit in your podcast. How do you communicate change orders to clients to avoid confusion or surprise costs?

Speaker 3:

science to avoid confusion or surprise costs. Well, that starts at the beginning of the project. Like I used the example of a soffit removal. For example, you go into that old 70s bathroom and for some strange reason, along the wall the wall, you know it drops down 18 inches and there's like a box between the wall and the ceiling. That may be there for a purpose. It may not be there for a purpose. It may have an AC duct inside it which we can move, it may have electrical which can be moved or, you know, it could have something in there that can't be, can't be relocated. But you know, when we talk about a project, I try to let the homeowner know that these things may come up. Well, this is a potential thing that may come up in here, and if it does, then this is how it's going to affect the project, just like when you're doing the very first walkthrough and a homeowner says I want to move this wall.

Speaker 3:

Okay, well, is it a load bearing wall? Is it not a load bearing wall? I haven't been in the attic, I haven't looked at the framing of the house to tell you if it's load bearing or not. So the more we communicate these things up front, the more the contractor uses his expertise. You know the contractor has a fiduciary responsibility. They are the expert, so they have a responsibility to share that information that will affect, or may affect the client. I mean, if I'm removing a non-load-bearing wall, it's not a big deal at all. If we're removing a load-bearing wall, it could mean we need to install an extra header or even an LVL if it's a large space. There's no telling. But there are some things that you can have conversations with the client up front to let them know 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 be prepared and everything doesn't come as a surprise as it arises.

Speaker 2:

Are change orders likely in every project or only certain projects?

Speaker 3:

Well, I personally I'm not a fan of change orders and you know I don't talk about bad contractors a whole lot, but I will tell you, a lot of contractors use change orders as a strategy to get projects. They will low bid a project just to get in the door and then just hit the client with change order after change order because the client's already committed to them. You know, I'm not a fan of that, I'm not a fan of change orders. I try to be as upfront as possible, try to fully vet the scope of work and you know, just so 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 that financial hit? You know, um, if you come in with a change order and you've told the client, oh, it's going to take four weeks to complete the project, and then there's a change order that comes up and now it's another two weeks and it's messed with the client's timeline. Maybe they were planning on going on vacation, who knows?

Speaker 3:

So you know, yeah, I'm not a fan of change orders. I try to avoid them whenever possible. That's why it's best to prepare the client up front so you can avoid those change orders. Now I probably have change orders on maybe 15% of my projects and it's always either going to be because there was something we didn't know. You know we busted open some sheetrock and there's some DIY electrical going on in there. You've got exposed wiring or you've got a. You know, a client wanted to remove a wall but we get in there and there's a main vent stack in there. Can't move it, things like that.

Speaker 2:

So you know they're going to happen, but I would say, in my experience only about 15% of the time.

Speaker 3:

And on that note, let's get into the final walkthroughs. Know, let's get into the final walkthroughs. Perfect, okay, final walkthrough. So final walkthrough is when the project has reached substantial completion, not a hundred percent completion, but substantial completion. So final walkthrough confirms the project matches the agreed scope before the final payment is made. And in the state of Texas, a contractor is required to withhold 10% or the sorry, the client is required to withhold 10%. So a contractor is not allowed to collect the final 10% of payment until project completion.

Speaker 3:

And so the final walkthrough is when the contractor and the client walk through the project and look for things that need to be touched up, and those touch-up items is called a punch list. Okay, so the final walkthrough is where we make that punch list. Checklist items would include functionality, 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 of paint? Do the two coats of paint really cover up the old avocado green paint you had on the walls, the trim work, the fixtures? And cleanup is everything cleaned up properly, everything put back to where it was before you started the project? And so those are things you want to check and then, working through the punch list, the contractor has a responsibility to have. Again, like I said, substantial finished work right, no big unresolved issues, just small touch-ups left to be done and Tips for the homeowner.

Speaker 3:

Review your contract when doing the walkthrough. Don't rush but don't be nitpicky either. You know Phrase that I say is po-buddies-nerfect. You know, nobody is perfect. No project is going to be perfect. There's always going to be small imperfections and, of course, but you know it would need to be things that you could live with, right For contractors. Be proactive, fix visible issues before the walkthrough.

Speaker 3:

What I personally like to do, I like to do a walkthrough with my project manager and my crew lead before doing it with the client. That way the punch list is smaller for the client and the client doesn't feel like, oh my word, nothing's completed Right. So the more eyes we have on it then the smaller that punch list is going to be and the happier the client is going to be and the sooner the contractor is going to be able to collect that final 10 percent payment going to be and the sooner the contractor is going to be able to collect that final 10% payment. You know, and making that strong final impression also will lead to more referral business for the contractor, because then the client's going to be happy to refer them to their friends and family, you know. So wrapping up, change orders and final walkthroughs A change order so wrapping up change orders and final walkthroughs a change order is about communication and documentation. Final walkthrough is about accountability and trust.

Speaker 2:

Both are opportunities to finish a project well and to protect and to build strong relationships. Wow Well, Jeff, thank you so much for walking us through the wrap-up phase. Your process really helps homeowners to feel empowered. We'll see you next time on the Remodel Contracting Podcast.

Speaker 3:

Thank you, sophia, have a great afternoon.

Speaker 1:

That's a wrap for this episode of Remodel Contracting Podcast. Ready to kick that 90s kitchen to the curb? For a free in-home consultation, call 469-831-5620 or visit remodelcontractingnet. Expect more, because your home deserves better and, honestly, so do you.