Change orders happen. Every contractor has dealt with them, from surprises underground to client indecision. But while change orders are a fact of life on construction jobs, they don’t have to tank your schedule, budget, and sanity.
The key is a clear, no-nonsense system to handle them before they turn into lawsuits, blown budgets, or lost weekends.
Why Change Orders Go Sideways
Most of the chaos starts with one of these:
- Work starts without approval. Crews jump in before anything’s signed, making it tough to track costs or enforce accountability.
- Requests are vague. Missing scope, unclear pricing, or sloppy documentation leads to confusion and disputes.
- Nobody agrees on who pays. Arguments over whether the change came from the owner, a design miss, or a contractor mistake end up causing delays and claims.
- Approvals take too long. Slow signoffs stall the job, push out the schedule, and wreck coordination between trades.
Sound familiar?
Without a formal process, things fall through the cracks. And when they do, the fallout lands on your plate: delays, disputes, busted timelines, or worse, litigation.
Put a Process in Place
If you want to stop playing defense, you need structure. That means:
- Formal procedures for requesting, approving, and documenting changes.
- Clear roles for who’s responsible.
- Proper documentation so there’s no confusion.
A disciplined process sets the tone. You define what counts as a change, what’s required to get it approved, and how it gets tracked.
What a Solid Change Order Looks Like
If you want change orders that hold up under pressure, whether in a client meeting or in court, make sure each one includes:
- A clear description of the change: What’s getting added, changed, or scrapped? Who requested it and why?
- Itemized cost breakdown: Labor, materials, equipment, subs, overhead, profit. Back it up with quotes or supplier docs.
- Updated drawings or specs: Give folks something visual. Changes in layout, systems, or finish need to be crystal clear.
- Impact to schedule: Will this push your timeline? Can you accelerate with more labor? Spell it out.
- Proof of agreement: Signatures, emails, or meeting notes that confirms that all parties are on the same page.
Having this lined up is your insurance policy if things go sideways later. No surprises, no “he said, she said” headaches.
Controls That Keep It Tight
For owners and developers managing bigger portfolios, here are smart controls to keep your change orders under control:
- Spell it out in the contract: Define roles, required documentation, and approval rules. No work starts until the change order is signed.
- Use the right software: A solid platform keeps all change order details (like scope, costs, approvals, and timelines) in one place, so nothing slips through the cracks.
- Demand detailed justifications: Require full breakdowns with backup from subs and suppliers.
- Set strict response timelines: Contractors submit by a set date, and owners or architects must respond by another. Keep things moving.
- Hold regular check-ins: Weekly or biweekly meetings help resolve issues early and keep everyone on the same page.
Bring in Backup if Needed
Some owners are using third-party reviewers to keep change orders clean and compliant. BuildOps reviews submissions mid-project, not just at the end, so problems are spotted early.
That third-party review can:
- Flag incomplete or risky change orders
- Help keep the project on budget and on track
- Confirm that everything aligns with the original contract
- Reduce the chances of claims or lawsuits during closeout
It’s another layer of oversight that frees up your team to focus on building, not chasing paper.
Final Word
Change orders aren’t the enemy. Bad change order processes are the real problem.
When you treat them like an afterthought, you open the door to blown budgets, bad blood, and legal headaches. When you lock in a smart, structured process with solid controls, you take back control of your job.
