Still managing change orders with spreadsheets and email chains? Construction disputes drag on for 15 months on average, costing over $30 million globally according to the 2020 Global Construction Disputes Report. Every project manager knows these contract modifications happen - especially on larger builds - yet most teams still handle them like it's 1995.
Change orders document modifications to your project scope, costs, and timeline. Simple, right? Two types exist: additive ones that increase scope or cost, and deductive ones that reduce them. Set up a proper change order process and you'll cut miscommunication while keeping projects moving. Track everything in a change order log to verify progress and catch problems early.
The systematic approach prevents disputes and documents mistakes before they become expensive headaches.
Here's everything you need to know about change orders - from understanding what triggers them to implementing practices that turn this contentious process into a streamlined part of your workflow.
Projects shift. Contracts adapt. A construction change order is the written document that officially modifies your original contract after work starts. It covers scope changes, cost adjustments, schedule shifts, or all three together.
Construction projects evolve - that's reality. Change orders handle contract modifications once work begins. They identify, define, and track modifications in a way that keeps everyone protected.
AIA Contract Documents show the average ranges from 1.7 change orders for small projects to 11.18 for larger ones. Once approved, these documents become part of the contract itself.
Change orders serve five key purposes:
•Document and formalise contract changes
•Adjust project scope, timeline, or budget
•Prevent stakeholder misunderstandings
•Provide legal protection for all parties
•Maintain project clarity
Proper change orders create written records of agreed modifications. The owner, contractor, and architect must sign off on three elements: work scope changes, contract sum adjustments, and time modifications.
Approved change orders immediately alter your original contract terms. The document becomes legally binding and modifies everyone's contractual obligations. Clear records protect all parties when disputes surface later.
BRCKS software provides standardised templates and automated tracking, making change order management significantly more efficient for project managers.
Change orders get a bad reputation they don't deserve. Many owners think contractors love changes because they can mark up costs to compensate for low initial bids. Contractors often believe owners use change directives to extract extra work without prompt payment.
Another myth... change orders always indicate problems or mistakes. Most modifications actually result from factors beyond anyone's control - owner-driven changes, unforeseen conditions, or weather delays.
Contractors generally dislike issuing change orders. They disrupt scheduling, pressure clients into hasty decisions, and prove difficult to price correctly. This contradicts the notion that contractors use changes primarily for profit.
Finally, people assume every construction contract must include change order provisions. No law requires contracts to allow changes, though contracts lacking flexibility create significant problems when adjustments become necessary.
Understanding these realities helps project managers implement effective change order processes that protect stakeholders while maintaining project momentum.
Change orders stem from situations that deviate from your original project plans. Know these triggers and you can anticipate modifications before they become problems.
Design issues trigger most change orders. Project teams discover proposed designs won't work as the build progresses, forcing immediate reevaluation. Owners change their minds about fixtures or room layouts during construction.
Design errors and omissions create another major catalyst for change orders, contractors report. Conflicting specifications, wrong measurements, or incomplete details surface only after work begins. Sometimes contractors spot more efficient building methods than originally specified, prompting beneficial changes to improve outcomes.
BRCKS tracks these design modifications with clear documentation and approval pathways, minimising disruptions when design adjustments occur.
Unexpected environmental conditions frequently force change orders. Hidden gas lines, water intrusion, or soil conditions that differ dramatically from site investigation reports.
The legal position on unforeseen ground conditions generally places risk with the contractor unless specifically addressed in the contract. Many international engineering contracts include provisions allowing contractors to claim additional time or compensation when encountering conditions that "could not, at the date of the Contractor's tender, have been reasonably foreseen by an experienced contractor".
Site condition issues commonly include:
•Unstable soil composition requiring additional foundation work
•Unexpected geological features requiring design modifications
•Unanticipated hydrological conditions necessitating drainage solutions
•Previously undocumented man-made obstacles requiring removal
BRCKS provides specialised documentation tools for recording these site condition discoveries, ensuring proper change order submission and approval.
Resource limitations impact construction projects severely. A YouGov survey revealed 74% of UK construction workers believe labour and skills shortages pose critical challenges, with 33% of respondents already feeling these impacts. These inefficiencies cost workers more than five hours of productivity each month, potentially amounting to £1.34 billion annually in lost productivity across the industry.
Material shortages trigger change orders too. Timber, steel, cement, and electrical components face severe supply constraints. Transport disruptions made things worse - shipping costs from Asia to Northern Europe soared almost six-fold between summer 2020 and May 2021.
BRCKS' tracking capabilities let project managers monitor resource availability and proactively initiate change orders when shortages threaten project timelines.
Building codes evolve during longer construction projects. New safety requirements might mandate additional exits or specific materials not included in original plans. Compliance with updated regulations often requires modifications to work already in progress, triggering change orders to align with current standards.
These regulatory changes ensure buildings meet contemporary safety and performance standards. Effective change order management means staying informed about potential regulatory changes and preparing contingency plans.
Smart project managers recognise these triggers early and implement structured practices to minimise disruptions while maintaining clear communication with all stakeholders.
Different situations call for different change order types. Each one handles contract modifications differently - knowing which to use saves time and prevents disputes.
These expand your original scope, usually meaning more cost and time. Happens when new work gets added to the contract. Client wants upgraded fixtures mid-build? Regulatory requirements pop up that weren't in the original plans?
That's an additive change order.
BRCKS tracks these additions automatically, creating clear documentation trails that protect everyone involved. No more scrambling through emails to find who approved what.
The opposite - reducing scope to save money and time. Budget getting tight? Some components no longer needed?
Watch out for Partial Termination for Convenience though. Remove substantial sections from the original scope and contractors get...let's say unhappy. They've already committed resources to that eliminated work. BRCKS handles these tricky situations with specialised documentation tools.
Changes that don't hit the budget. Design clarifications, minor scope tweaks, or sequencing changes that affect workflow but not costs.
Still need proper documentation though. Switch materials to equivalent alternatives? Modify work sequences? Document it all. BRCKS streamlines this process so even no-cost changes stay compliant.
Use these when you can't calculate the full impact upfront. Contractors track time, materials, and equipment costs as work progresses.
Payment comes from documented expenses plus agreed markup. Perfect for unforeseen conditions where fixed pricing is impossible. BRCKS T&M tracking calculates running totals automatically and generates professional documentation.
Choose the right type based on your situation and how precisely you can determine costs. Get this wrong and you'll be dealing with disputes later.
Stop winging it with change orders. Follow these five steps and you'll prevent disputes while keeping everyone aligned.
Document everything when modifications surface. Take photos, note revised plans, file RFIs. Pin down the exact reason - design error, site surprise, or owner request. BRCKS captures and categorises these triggers automatically, creating your audit trail from day one.
Draft your change order request with clear explanations. Include detailed cost estimates and schedule impacts. Use standardised templates to stay consistent and avoid errors. BRCKS templates auto-populate project details, so nothing gets missed.
Assess how changes affect budget and timeline. Break down costs for materials, labour, equipment. Factor in schedule revisions. BRCKS calculates direct and indirect costs automatically - no more spreadsheet nightmares.
Review with all stakeholders. Expect discussions on scope, pricing, timeline adjustments. Complex changes need multiple review cycles before approval. BRCKS tracks comments, revisions, and approval status in real-time.
Incorporate approved changes into project documentation. Update contracts, schedules, budgets. Notify the whole team about modifications. BRCKS integrates changes automatically and maintains your change log as the single source of truth.
Follow these steps with purpose-built software and change orders become manageable workflow instead of project chaos.
Stop letting change orders derail your projects. Smart project managers follow these practices to keep modifications under control and disputes at bay.
Read every line before signing. Your contract should spell out exactly how to initiate, approve, complete, and pay for change orders. Standard forms like JCT or NEC contracts include defined procedures for managing work changes. These provisions eliminate guesswork and reduce future headaches. BRCKS integrates with standard contract forms, tracking compliance automatically.
Document everything. Contracts, emails, site diaries, labour sheets, design changes, superseded drawings, progress reports. These records create your paper trail, track progress, and manage resources effectively. UK construction regulations may require keeping records for 3-10 years after completion. BRCKS organises and preserves these critical documents in secure cloud storage.
Establish clear communication channels for everyone involved. Early communication stops misinformation and resistance before they start. Repeat key messages 5-7 times using multiple channels for maximum impact. BRCKS automates notifications and provides dashboards that keep everyone updated on change order status.
Implement consistent forms for every change request. Your templates should capture the reason for change, scope modifications, cost implications, and schedule impacts. Standardisation maintains clarity and ensures nothing gets missed. BRCKS provides pre-built templates that streamline documentation while meeting regulatory requirements.
Get everything in writing. Period. Many still rely on handshake deals, especially on smaller projects. That verbal agreement isn't legally binding. Courts rarely enforce payment without signed documentation. BRCKS eliminates this risk with digital signatures that make proper documentation simple.
Change orders happen on every project. That's reality. The difference between successful builds and costly disputes comes down to how you handle them.
Good change order management starts with solid contracts and ends with proper documentation. Standardised templates keep everyone aligned. Clear communication prevents the "he said, she said" nonsense that kills projects.
BRCKS handles the complex stuff - automated tracking, impact calculations, digital signatures. No more chasing approvals through email chains or wondering which version is current. One system tracks everything from initial request to final documentation.
Projects using BRCKS see fewer disputes and faster approvals. Our customers cut administrative overhead while staying compliant with contract requirements. The platform turns change orders from a headache into just another workflow.
Change orders aren't going anywhere... but they don't need to stress you out. The right approach and proper tools make them manageable. Stop fighting the process and start controlling it.
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