Construction Change Orders in Texas: Code Compliance, Liability, and Litigation Risk

In Texas residential construction, few issues generate more downstream defects, disputes, and litigation exposure than change orders. What is often treated by builders as a routine contractual adjustment frequently becomes the root cause of undisclosed code violations, uninspected work, voided manufacturer warranties, and ultimately, homeowner losses that surface months or years after closing.

From a code-compliance and expert-witness perspective, change orders are not administrative paperwork. They are technical events that can materially alter structural systems, energy performance, electrical safety, fire resistance, and moisture management. When improperly handled, they create liability for builders, exposure for inspectors, and evidentiary leverage for attorneys.

What Is a Construction Change Order?

A construction change order is any modification to the originally permitted scope of work, including changes to:

• Structural layout or load paths

• Mechanical, electrical, or plumbing systems

• Materials, assemblies, or product substitutions

• Energy-related components (fenestration, insulation, HVAC capacity)

• Life-safety elements (egress, guards, fire-resistance assemblies)

In practice, many “changes” are implemented informally - via emails, text messages, or verbal approvals—without revised plans or permit amendments. From a code standpoint, this distinction is irrelevant. If the work changes, the code obligations change with it.

Permit and Code Compliance Implications

Under the International Residential Code (IRC), permits are issued based on approved construction documents, not generalized intent. When work deviates from those documents, compliance must be reevaluated.

• IRC R105.1 & R105.3 require permits and plan approval for construction regulated by the code.

• IRC R106.4 requires construction to conform to approved plans. Deviations require approval.

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In Texas jurisdictions, a material change typically requires a permit amendment or revised permit, even if the original permit remains open. Failure to obtain approval means the work may never be legally inspected or approved by the Authority Having Jurisdiction (AHJ).

Manufacturer Requirements and Listing Violations

Many change orders involve product substitutions or installation modifications. This is where builders frequently create latent violations without realizing it.

• NEC 110.3(B) mandates that electrical equipment be installed in accordance with its listing and manufacturer’s instructions.

• The IRC and IECC similarly require compliance with manufacturer installation instructions for structural connectors, fenestration, insulation systems, and cladding assemblies.

  
  

A “simple” change - such as relocating equipment, downsizing conductors, substituting windows, or altering clearances - can void listings and warranties and render the installation noncompliant even if it appears functional.

Energy Code Consequences (Often Overlooked)

Energy compliance is particularly vulnerable to undocumented changes.

Under the 2015 IECC (the state-mandated baseline in Texas, absent local amendment), changes affecting:

• Window U-factors or SHGC

• Insulation R-values or continuity

• HVAC system sizing or distribution

• Envelope penetrations or air sealing

  
  

may invalidate the original compliance path (UA trade-off, REScheck, or performance modeling). Once broken, energy compliance does not self-heal - and is rarely reverified after a change order.

Liability Risks for Builders and Inspectors

Improperly documented change orders create cascading liability:

• Builders may deliver work that is unpermitted, uninspected, or noncompliant

• Municipal inspections may not cover the altered work

• Third-party inspections are often limited to visible conditions at a point in time

• Homeowners inherit defects they did not design, approve, or understand

  
  

When failures occur - electrical overheating, moisture intrusion, structural movement, or energy performance complaints - the change order becomes a focal point for defect causation analysis.

Litigation and Expert Witness Considerations

In construction defect litigation, change orders raise predictable questions:

• Who authorized the change?

• Was it documented in writing?

• Were plans revised and approved?

• Was a permit amendment obtained?

• Was the modified work inspected?

• Did the change create or conceal a code violation?

  
  

From an evidentiary standpoint, undocumented or improperly executed change orders are difficult for defendants to defend. They often undermine claims of “code-compliant construction” and weaken reliance on municipal approvals.

How Homeowners Can Protect Themselves

Homeowners are rarely warned about the technical consequences of change orders. Best practices include:

• Requiring written change orders with detailed scope descriptions

• Confirming whether a permit revision is required and issued

• Requesting revised plans where systems are affected

• Obtaining independent inspections after changes are implemented

• Preserving documentation for warranty and dispute purposes

  
  

These steps do not prevent defects - but they significantly improve accountability and traceability.

The Bottom Line

In Texas residential construction, change orders are not merely contractual adjustments. They are code-sensitive events that can alter compliance, void warranties, and shift liability long after construction is complete.

When change orders are treated casually, defects are not accidents—they are foreseeable outcomes.