Adapting to Change Orders in Construction

Change is inevitable in life. But in the construction industry specifically, a change order could upend your entire operation if you’re not prepared.

A change order is any modification to the scope of work after a construction project begins. You may be asked to handle new or revised client requests. Alterations could include minor adjustments in materials to major design overhauls, along with unexpected site conditions and other challenges.

Here are a few ways to handle these unexpected shifts, which can impact your project timelines, labor allocation, materials, and budgets.

Clear Communication and Documentation

Managing a worksite requires not only strong technical skills but also the ability to manage relationships and facilitate discussions among owners, contractors, and subcontractors. Interpersonal skills are key to preventing delays and disputes when a change order comes in.

Learn everything you can about what the changes mean for your team. Tactfully negotiate the financial and logistical implications, and record every step meticulously to maintain project momentum and manage client relationships.

This is where your expertise in digital construction management tools — like Contractor Foreman, Autodesk Construction Cloud, CoConstruct, Procore, or Buildertrend — will help you to keep track of communication, decisions, and data.

A Robust Change Order Process

Establish a structured approach to change orders from the outset, before they can snowball into major disruptions. A formalized change order process could entail the following:

1. Request and evaluation: The change order should clearly outline the reasons for the change. You’d then discuss with your client the feasibility of what they’re asking for and its potential impact.
2. Cost and schedule assessment: Meet with your team to perform a detailed budgetary and timetable assessment for the newly defined project.
3. Documentation and approval: Pull together updated plans, new cost estimates, and revised schedules, and document everything. Then obtain all necessary approvals.
4. Implementation and communication: Finally, with all parties on the same page, you can execute the change order. Don’t neglect to provide regular updates to all involved to ensure that your project remains on track.

While change orders can’t be avoided, their impact can be minimized. To anticipate risks, have a sound pre-construction plan in place, including flexible schedules and strong supplier relationships to ensure the smooth procurement of materials. Managing change orders well will show that you’re a reliable professional. It’ll also make you a top candidate when you’re ready to move up in the industry and see what else is available.