Change Order

Change Order is a written modification to the original Scope of Work after the loan has closed. Borrower or GC discovers a deferred-maintenance item (failing electrical panel, rotted subfloor, sewer line replacement) and needs to add it to the budget. Change orders typically require lender approval, may require a revised appraisal if the change materially affects ARV, and can shift the draw schedule. Excessive change orders signal SOW underestimation at application — an underwriting flag for future files.