My contractor is asking for more money. What are my options?
You agreed on a number. Work started. Now there's a new number, and it's bigger.
By MEAA Group Consulting · Published September 2026
If your first reaction is somewhere between confused and cornered, that's the normal reaction. You're being asked to make a financial decision quickly, about work you can't fully evaluate, by the person currently holding your unfinished house. Most people in that position either sign to keep the peace or dig in and hope.
There's a better first move than either, and it costs nothing: find out what kind of increase this actually is. Homeowners tend to experience every price increase as the same event. They aren't the same, and the right response is different for each.
Five things a price increase can be
1. You changed something.
You picked a different tile, moved a doorway, added a window. This one is genuinely yours. The question isn't whether you owe it — it's whether the price is itemized and whether you agreed to it before the work happened.
2. Something was found that nobody could see.
A wall came open and there's rot, old wiring, or no header where one should be. Legitimate, and common in older houses. The price still needs to be broken down, and the finding still needs to be documented — ideally with photographs — while it's visible.
3. Something was missing from the original scope.
The bid didn't include something that the finished job clearly requires. Who carries this depends entirely on how the contract and scope were written, and it's the category that produces the most disagreement.
4. An allowance ran over.
You were given a number for cabinets or tile before anyone knew what you'd choose. Now you know, and the real price is higher. This one often doesn't feel like a change at all — it feels like a surprise — which is exactly why it catches people.
5. Something has to be redone.
Work was done wrong and now needs doing again. Whether that lands on your bill is a real question, and it's worth asking plainly.
Most mid-project increases are one of these five. Quite a few are two or three of them bundled into a single number, which is part of why they're hard to assess.
Before you answer
"I need to look at this before I respond" is a complete answer. You are allowed to say it. You do not owe anyone a same-day decision on a five-figure question, and a contractor who works this way routinely will not be surprised by it.
Then ask for four things, in writing:
- An itemized breakdown. Materials and labor separated, not a single lump figure. If a number can't be broken down, that's worth understanding before you approve it.
- What the original bid included for this item. You cannot judge an increase without knowing the baseline it's increasing from. This is the question most people skip.
- Which of the five categories above it is. Ask directly. The answer tells you a great deal.
- The cumulative picture. Not just this request — everything approved so far, and where that puts you against the original contract sum. People track individual change orders and lose sight of the total.
What your contract probably says, and whether it was followed
Most residential construction contracts require that changes be documented in writing and approved before the work proceeds. Many also specify how a change gets priced.
Pull your contract and read that section. Then compare it to what actually happened. A common and frustrating pattern is a contract that requires written, pre-approved changes attached to a project where the changes were verbal and the work is already done. That gap doesn't automatically resolve in anyone's favor, but you should know it exists before you have the conversation, not during it.
Things worth a closer look
None of these means anything improper is happening. Each is a reason to slow down and ask another question:
- Changes described verbally and priced later
- A change presented after the work is already complete
- A number that can't be itemized on request
- A pattern of small increases that individually seem reasonable
- Pressure to decide immediately
- A percentage of the original contract that keeps climbing without a corresponding change in scope
Where your architect fits
If your architect's contract includes construction-phase services, evaluating change orders for design impact is part of their role. Send it to them. That's what that scope is for, and it's the most useful and least expensive review available to you.
If your architect's contract is design-only — a normal and deliberate choice many owners make — then that construction-phase review simply isn't in the agreement you signed. Knowing which situation you're in matters, because it tells you where your project's technical review is coming from, or whether it's coming from anywhere.
Where this stops being a construction question
Some of this is not a construction question at all, and I'd rather say so than pretend otherwise.
If you're being told work will stop unless you pay, if there's a lien threat, if you're considering withholding payment, or if you're thinking about terminating the contract — those are legal questions and they belong with a construction attorney in your state. Construction law varies enormously between states, and the answer to "can I withhold payment" is not the same in Texas as it is in California.
What I can help with sits earlier than that: understanding what you're actually being asked to approve, and deciding clearly while you still have room to decide.
What owner-side help looks like here
MEAA works on the owner's side of a project. On a change order, that means going through what you've been handed, translating it into plain terms, identifying what's missing from it, and putting the questions in front of you that you'd want answered before you sign.
MEAA brings a construction background — practical, build-side experience — to the owner's side. It doesn't replace your architect's technical review, and it doesn't step into your builder's role. It's there so that the person paying for the project understands the decision in front of them and can make it on time, which is usually what keeps a project moving.
If you're holding a change order right now and you're not sure what you're looking at, a free 15-minute introduction call is a reasonable place to start. It's a short conversation about what's happening on your project and whether MEAA is a fit — not a review, and not advice on your specific documents.
This article is provided for general educational purposes only and does not constitute legal, financial, or professional construction advice. MEAA Group Consulting's services are advisory and coordination support only and do not replace any licensed professional required by state or local law. All final project decisions remain with the homeowner and the appropriate licensed professionals.