Additional demolition is required. More damaged material was discovered. Quantities have increased. Another trade needs to be brought in. The repair method has changed. Suddenly, the cost of restoring your property is higher than the amount you previously expected.
The contractor may need an answer quickly so work can continue.
But before approving a significant restoration change order, an Ontario property owner should understand one fundamental question:
What changed at the property that created the additional work and cost?
Change orders are not automatically a warning sign. Fire, water, smoke, sewage and other property losses frequently involve concealed conditions that cannot be fully identified until demolition begins. However, additional work should be understandable and capable of being connected to the actual conditions discovered during the project.
Why Change Orders Happen During Property Restoration
Restoration and reconstruction are different from planned construction because contractors are often working with a building that has already suffered damage.
The initial scope may be based on what could reasonably be observed before walls, ceilings or flooring were opened.
Demolition can change that picture.
Water may have travelled farther through a wall cavity than initially visible. Wet insulation may be discovered behind drywall. Smoke contamination can extend into concealed spaces. Damaged framing or subflooring may become visible. Electrical or mechanical components may require additional attention.
The original quantity of damaged material may simply turn out to be larger than anticipated.
Any of these conditions can legitimately affect the restoration scope.
The important issue is whether the change order clearly connects the newly discovered condition to the additional work being proposed.
Before Approving the Change Order, Identify Exactly What Changed
A change order should not leave the property owner wondering why another several thousand dollars has suddenly been added to the project.
Compare the proposed change with the original scope.
If additional drywall demolition is being requested, what newly discovered condition requires it?
If flooring replacement has expanded into another area, what was found?
If another trade is now necessary, what condition created that requirement?
If quantities increased, can the revised quantities be explained?
For substantial projects, Vibo's Cost & Progress Review services can help property owners review changing project costs and progress while restoration work is underway.
The objective is not to assume the contractor is wrong. It is to make sure the owner understands what is being approved.
Document Hidden Damage Before It Disappears
One of the most important moments in a restoration project occurs when demolition exposes something that was previously concealed.
Suppose a contractor opens a wall and discovers water damage extending substantially beyond the original demolition area.
That condition may justify additional work.
But the opportunity to document it may be short.
The damaged material could be removed that afternoon. Drying could begin immediately. A few days later, the area may look completely different. Eventually, reconstruction will cover the assembly again.
Photographs, measurements, descriptions of affected materials and other appropriate records can preserve a clearer history of what was discovered.
Vibo's Site Inspection & Documentation services can help establish a technical record of newly exposed property conditions before restoration changes or conceals them.
Document the condition before it disappears—not after questions arise about the change order.
Compare the New Work With the Original Scope
A restoration change order should make sense when viewed beside the original project scope.
If the original scope contemplated removing 200 square feet of a material and the contractor now proposes 500 square feet, there should be an understandable reason for the difference.
Perhaps demolition exposed additional damage.
Perhaps measurements changed.
Perhaps the original specification no longer reflects what is actually required.
Whatever the reason, the revised work should be capable of being traced back to the conditions at the property.
Where the scope itself requires closer review, Vibo's Scope, Specifications & Bid Support services can assist with evaluating restoration scopes, specifications, quantities and proposed work.
This becomes particularly valuable when a project involves several contractors or increasingly complicated reconstruction.
Make Sure the Change Order Describes More Than a Price
A property owner needs enough information to understand what is being purchased.
A change order stating only “additional repairs — $12,500” provides very little context.
For a substantial additional cost, the owner should be able to identify what work has been added and why.
That may involve revised quantities, materials, labour, demolition, disposal, specialty trades or other project-specific requirements.
The appropriate level of detail will depend on the project, but the principle remains the same:
The additional cost should correspond with identifiable additional work.
This is especially important when several change orders accumulate throughout a major restoration.
Understand Whether the Change Is Loss-Related or an Owner Upgrade
Property restoration projects sometimes create opportunities for owners to make improvements while the building is already under construction.
That can be practical, but it can also make the project's costs harder to follow.
Suppose damaged flooring needs replacement and the owner selects a substantially more expensive product. Or a damaged electrical component requires repair while the owner simultaneously requests unrelated electrical upgrades.
Those costs should not become indistinguishable from the work associated with restoring the property loss.
Keeping owner-requested improvements separate from loss-related restoration work creates a much clearer project record.
A Change in Scope Can Also Change the Value of the Loss
A significant newly discovered condition can affect more than one contractor invoice.
If demolition reveals that the physical loss is materially larger than originally understood, the financial extent of restoring the property may also change.
Vibo's Property Loss Valuation services can help analyze restoration costs where the financial extent of a significant property loss requires closer examination.
This is different from simply asking whether a contractor's price “looks high.”
The more useful question is whether the proposed cost corresponds with the documented scope, quantities, specifications and work required at the property.
Multiple Change Orders Deserve a Wider Project Review
One change order may be straightforward.
Five or six change orders can create a very different situation.
The original contract amount may no longer resemble the current projected cost. Newly discovered conditions may have materially changed the scope. Several trades may now be involved, and work completed earlier in the project can become difficult to reconcile with what is currently being proposed.
At that point, reviewing each change order independently may not provide the complete picture.
Property owners may need to understand the project as a whole: the original damage, initial scope, newly discovered conditions, revised work, amounts already paid, current progress and work remaining.
Vibo's Property Loss Advisory & Liaison services can provide technical support and coordination where a significant property loss involves multiple parties, changing scopes and increasingly complicated restoration requirements.
What If the Change Order Relates to an Insurance Loss?
When restoration is connected to an insurance claim, newly discovered damage or additional work may also become relevant to the claim.
However, documenting the physical loss and determining insurance coverage are different issues.
A technical review can address the property itself: what conditions were discovered, what materials were affected, what quantities changed, what work is being proposed and what that work may cost.
Whether a particular expense is covered under an insurance policy depends on the applicable policy and circumstances.
Vibo's property-loss services focus on the physical loss, documentation, scope, quantities, restoration requirements and costs rather than providing legal advice or determining insurance coverage.
The Best Time to Review a Change Order Is Before the Work Is Covered
Once additional work is completed, the property may no longer show why it was required.
Wet insulation gets removed. Damaged framing is repaired. Electrical components are replaced. Walls are closed. Flooring is installed.
That is why the period between discovering the new condition and approving the additional work can be so important.
If the change is significant, understand it while the evidence is still available.
Document what was discovered. Compare it with the original scope. Understand the additional work. Review the quantities and specifications where appropriate. Determine how the additional cost was developed.
Then make an informed decision about the change order.
Change Order in Front of You? Understand It Before You Approve It
A contractor requesting additional money during restoration does not automatically mean the project has a problem.
Buildings can reveal unexpected conditions after demolition begins, and legitimate restoration requirements can change.
But property owners should not have to approve substantial additional work without understanding what changed, why it changed and how the new cost relates to the property conditions.
Vibo Restoration provides Cost & Progress Review, Site Inspection & Documentation, Scope, Specifications & Bid Support, Property Loss Valuation and Property Loss Advisory & Liaison for significant residential and commercial property losses throughout Vaughan, Toronto and the GTA.
Have a restoration change order in front of you and need to better understand the additional work before approving it? Call Vibo Restoration at 647-330-0532.