Yep...all of this is SOP (Standard Operating Procedure). We see this every day. Clients start with a quote and a "start build" order and then, as they go, they change things. Each change costs money. Each "upgrade" costs money (that's why they call it an upgrade and not a "choice").

The fastest way for budgets to balloon = "Change Orders" put in by the homeowner. The best way to stay on budget = don't change anything. Only in real emergencies (like when the granite that was promised no longer exists/is available for your build) should a "change order" take place.

What you are experiencing is normal and will continue so long as you ask for "changes". Remember: they will ALWAYS say "yes"...because it makes them money! A simple question like, "Can we do THIS?!" will always come with a "Sure...It'll cost you $X more".

Change orders usually happen when poor specification work was done on the front end. You either pay an architect to provide complete construction drawings fo you, or you pay the contractorr for all of the change orders as you go along.

I have a question about change orders. We are building a new home. The builder is applying a 20% surcharge on the difference between allowance and actual costs. For example, if the allowance is for a $100 faucet and I choose a $200 faucet, they will charge me the difference of $100 plus $20. If, instead, I replace that same $100 faucet with one that cost $1,100, they will charge me $1000 plus a surcharge of $200. Does this sound right to anyone?

100% correct. You pay markup on everything. That's why you pay for full architectural services on the front end. It's cheaper than playing catchup with allowances and change order fees.

Not sure what you mean by paying for full architectural services on the front end. We are building from a set of builder plans.

What is the justification ? The builder is content with whatever profit is built into the allowance and an $1100 faucet is no more difficult to install than a $100 faucet. What then justifies the 20% surcharge, when the result is that I am now paying more than retail?

There is a ton more risk to the builder with more expensive materials. Sorta like the difference in you breaking a crystal vase in Macy's vs. a glass one at your local Goodwill. One costs you 100 times as much to pay for.

Full architectural services means that a plan is designed to your specifications by an architect. Puppy mill plans don't even rate the f in full as far as specifications. All materials are called out in the specifications of a properly designed build, not just structural detail and design element details like the actual proportions of the coffered ceiling. Not just ''wood floors'' but ''Lauzon Maple Street 5"engineered plank, or North American constructed similar''. Then the architect is there as your advocate and protects your interests during the build. He assists in negotiating and mediating any issues that arise instead of you being at a disadvantage and going it alone.

Never mind the fact that someone has to discuss each change order with you, type it up, get you to sign it, bill you, and notify the appropriate sub. Then if they overlook a change order they are now responsible to pull your coaxial feed you discussed at a end of day walk through.

Change orders are a pain for everyone involved. That said the only times we have completely avoided them is my clients that leave the country during the renovation. Bliss!!!