The 'Change Order Scam' Explained

What happens here

The presenter explains the 'Change Order Scam,' a tactic where contractors intentionally bid low on a project, knowing that changes are likely. Once the contract is secured, they wait for an opportunity to introduce 'change orders,' which allow them to dramatically inflate prices for what might be minor alterations. This strategy ensures profitability through changes rather than the initial agreed-upon work. He shows a retaining wall project as an example where minor aesthetic changes could be exploited.

Goal: Understand how contractors use change orders to increase project costs and how to mitigate this risk.