They have the ball. If you want to play ball with them, it’s by their rules. Your contract already spells out what those rules are. You don’t get to change them because you don’t like them. Read your contract again. You can not have signed it without reading it.

Sometimes, the time and logistics in cancelling prior agreements with material suppliers or other vendors etc. or other logistics such as delivery costs etc. on the builder or contractor side is underappreciated. The point though is usually there is difficulties making changes after the fact that you are not aware of. There is administrative work or other considerations that take time. Most people like to be paid for their time and thus, they find ways to accomplish this. Perhaps the upsell price compensates them sufficiently for this time. Time that is spent prior to anything being installed for instance. The unfortunate reality is that it is very difficult to know for sure if the above is genuinely the case for a contractor/builder. If not then yes, of course, your are being taken advantage of in principle. Yet in contract as @User said, your contractor is simply following what has been set forth in contract. I would advise you to approach your contractor with a positive demeanor and propose that they consider a discussion over those costs. Try and leverage the actual value vs. the upsell price to imply the disproportionate nature of the fee.

Out of curiosity what are the "items" that you are referring to for this particular change?

Thanks InnoVision and just_janni. I suppose it’s somewhat comforting to know that this is expected practice, and thanks for the tips on discussing with the contractor. Celadon, customizations and changes like this were not covered in the contract (I did read it), so it’s not like we had anything to refer back to.

We are looking to replace 6” recessed lights with 3” recessed lights. We understand that 3” lights are not as bright so we’ll need more of them, and we’re fine paying for the upsell cost on any additional lights needed. But for the replacements, we’re just looking to get a fair credit for the 6” lights we’re not installing—either we get upsell credit and pay upsell on replacements or we receive at-cost credit and pay at-cost on replacements. But I do see your point on them getting paid for administrative time as well.

@New Home Buyer You are more then welcome. I would leverage the more expensive standard cost of the 6" lights to compensate for the upsell cost of the 3" lights. If we are talking an uneven quantity ie. ten 6" lights for twenty 3" lights lets say, then that is more of a pickle. You might be better off accepting the credit for the 6" lights OR keeping the 6" lights altogether, re-selling them online for a 25% discounted rate lets anticipate, and purchase the 3" lights yourself. This way the contractor has the sale on the 6" lights and your sourcing your own deal elsewhere. Somewhat of a your time vs. their time = you exponentially increase your value given the situation.

How many lights are we talking here?

It's not an exact accounting and surely nothing you've received in writing spells it out exactly. You don't really know his wholesale cost (6" is typical and probably buys in bulk) anyway, and they certainly didn't break down the extra hours to wire more fixtures, extra hours to bore more drywall holes, etc you just received a cost with maybe labor + materials + OHP, (minus) credit. They can label line items anything they want, it boils down to is it worth it to you.

BTW 6" is more for general lighting, 3" is for task or accent. A lot of people just don't like seeing big 6" cans, so they mistakenly use 3" when it isn't appropriate for their lighting.

So lets clarify this then. @New Home Buyer When you refer to the cost for the 6" lighting vs. 3" lighting selection you now wish to have installed, are you factoring in labor + material or are we talking just material?

I was assuming we were only discussing material costs alone. I assumed that labor goes without saying to be an additional cost. Labor completed after the fact for changes will always be dramatically more expensive. Especially for something like lighting, which if done as to be intended from the beginning, can save massive amounts of labor hrs. Especially if drywall has been installed...

Thanks @InnoVision Design & Project Management Inc and @3onthetree. The cost they're quoting is all in -- labor/installation, lights, and overhead; I don't think procuring/returning the 6" lights are an issue for them. As you and others have said, I think it's purely about overhead on the change, so it does come down to whether it's worth the cost to us.

If that's the case then an exponentially more expensive charge, is more then normal and to most certainly be expected.

@InnoVision Design & Project Management Inc. just to clarify, the home is still at the stage where no electrical, dry wall, or ceiling work has been done yet, so there’s nothing to reopen or tear down. As such, we were expecting maybe a 30% increase in all-in costs for 3” vs 6”, but the all-in costs are more than 2x different per light.

I would expect a 200% price increase to go from 6” to 3”. It is much more than “there is a lot more of them” or ” the fixtures are double price”. You are not halving your lighting amount. You’re reducing it by 75%. If your ceilings are over 10’, the 3“ lighting will light the top of the room, not the floor area. You need an entirely new lighting plan. You will not have enough light in the room. You need a lighting designer to plan it out, or it will be inadequate.

Adding more 6” fixtures is usually the best way to go for better lighting in a great room. As well as accent spots, sconces, pendants, and lamps.

we were expecting maybe a 30% increase in all-in costs for 3” vs 6”, but the all-in costs are more than 2x different per light.

Sounds about right. You can go to HD website and compare retail prices for 6" vs 3". About $18 for 6" and $34 for 3". Here's the kicker - very few 3" are housing required - meaning they are installed like "remodel" cans. So either throw in some rough-in template frames or lots more labor.

I will repeat what I said earlier, there is about a 99% chance you are making a mistake changing all 6" to 3". Now, 6" to 4" is possible, and cost difference is less.

https://www.amazon.com/Ensenior-Ultra-Thin-Can-Killer-Downlight-Brightness/dp/B07T6YD7MR/ref=sr_1_5?dchild=1&keywords=4%22%2Brecessed%2Blighting%2Bled&qid=1613074935&sr=8-5&th=1

https://www.amazon.com/Ensenior-Ultra-Thin-Can-Killer-Downlight-Brightness/dp/B07T6YD7MR/ref=sr_1_5?dchild=1&keywords=4%22%2Brecessed%2Blighting%2Bled&qid=1613074935&sr=8-5&th=1

That is the business model all large developers use, tremendous markups and pennies on the dollar credits. Just standard practice.

material for a 6" recessed starts around $15 including the trim, double for 4". Labor & cable to install more adds quickly depending on ceiling height (ladder time).

We've seen posters here select really high-end recessed fixtures that will make all these calculations look silly.

"customizations and changes like this were not covered in the contract"

I am willing to bet money it is there in some form. Large builders/developers are smart enough to cover their bases of that you can be certain.

The cost is what the builder says it is. You can shrug and accept it, or you can let it grind you down as one more instance where the world is unfair. Your choice.

Thanks all for the feedback and advice! We’re first time buyers/customizers so are quite new to the process, but it’s helpful to hear that this is all expected.

@New Home Buyer Based on the stage of construction, the reality is that costs to make changes at this point are as minimal as possible. It really is mostly the cost for extra electrical work and materials. Not inconveniences with electrical modifications made after the fact (fishing wiring etc.), and drywall repair work. If you choose to except the philosophy @Louise Smith provided you, I believe most trades, contractors etc. will have a field day with you. It does not hurt to attempt to come to an agreement, but approach your contractor tactfully not with the intent to risk burning bridges.