By ZACH SIMMONS

Change orders are one of the biggest challenges in construction. They can delay schedules, inflate budgets and strain relationships between clients, contractors and other stakeholders.

But here’s the good news: many change orders are preventable.

While it’s impossible to foresee every challenge on a construction project, there are proven strategies to minimize the likelihood of costly changes. By focusing on proactive planning, clear communication and leveraging the right tools, construction teams can keep projects on track and clients satisfied.

Let’s explore why change orders happen, their impact and actionable steps you can take to avoid them.

What Are Change Orders and Why Do They Happen?

A change order is an amendment to the original construction contract that details changes in the scope of work, design, materials or schedule. These changes often come with adjustments to cost and timeline, which can ripple through the project and cause disruption.

Common Causes of Change Orders

1. Incomplete or Inaccurate Plans

When project designs are incomplete or unclear, construction teams must improvise. This leads to mid-project changes, as unforeseen issues arise or critical details are clarified too late.

2. Scope Creep

Sometimes clients request additional features or upgrades after construction begins. These requests, while often well-intentioned, alter the original project scope and require a formal change order.

3. Site Conditions

Unforeseen conditions, such as soil quality issues or hidden underground utilities, can necessitate changes to the construction plan.

4. Miscommunication

Lack of coordination among stakeholders – clients, architects, engineers and contractors – can result in misunderstandings about expectations, leading to changes.

5. Errors and Omissions

Mistakes in drawings, specifications or construction can require corrective work, often formalized through a change order.

6. Regulatory or Code Compliance Issues

Discovering late in the process that a project doesn’t meet local codes or regulations can force teams to revise plans and budgets.

 The Cost of Change Orders

Change orders come at a price – not just in terms of money, but also in lost time, strained relationships and diminished trust.

Here’s how they impact projects:

1. Budget Overruns

Change orders often involve additional labor, materials, and equipment, driving up costs beyond the original estimate.

2. Schedule Delays

Changes disrupt workflows, requiring rework, rescheduling of subcontractors or waiting for revised plans or permits.

3. Client Dissatisfaction

Unexpected costs and delays can frustrate clients, leading to disputes and potential damage to a company’s reputation.

4. Team Morale

Frequent change orders can create stress for teams, leading to inefficiencies and strained working relationships.

Change Orders by the Numbers

To understand the scale of the problem, let’s look at industry data on change orders.

Frequency of Change Orders

The number of change orders depends on the size and complexity of a project. Small projects experience an average of 1.7 change orders. Large projects face as many as 11.18 change orders on average.

Financial Impact

Change orders also have a significant financial impact. They account for an average of 10 percent of the total contract value. On some projects, this percentage can climb as high as 25 percent. Large-scale projects often see cost overruns of 11 percent to 15 percent of the original contract value due to change orders. For example, on a $5 million project, change orders could add $500,000 to $750,000 in unexpected costs. These figures demonstrate why reducing change orders is critical for controlling budgets and maintaining client satisfaction.

Strategies to Minimize Change Orders

1. Prioritize Preconstruction Planning. A well-planned project is far less likely to encounter changes. Preconstruction is your opportunity to identify potential risks, clarify scope and address uncertainties before work begins. Invest in Detailed Design Development: Ensure that architectural, structural and MEP (mechanical, electrical, plumbing) designs are as complete as possible. Conduct Thorough Site Investigations: Address potential site challenges, like soil conditions or underground utilities, during the planning phase. Establish Clear Project Objectives: Work with clients to define goals, priorities and must-haves upfront.
2. Align Stakeholders Early and Often. Misalignment between stakeholders is a leading cause of change orders. Bringing everyone onto the same page early ensures that expectations are clear and consistent. Facilitate Design Charrettes: Collaborative design sessions allow stakeholders to address concerns and provide feedback before finalizing plans. Hold Regular Coordination Meetings: Keep architects, engineers, contractors and clients aligned throughout the project lifecycle. Document All Agreements: Clearly outline decisions in writing, so there’s no ambiguity about what was agreed upon.
3. Use Technology to Your Advantage. Modern tools can dramatically reduce errors, improve collaboration and enhance project visualization. Building Information Modeling: BIM enables teams to create detailed 3D models that identify clashes or design conflicts before construction begins. Project Management Software: Platforms like Procore or PlanGrid streamline communication, documentation and tracking of project updates. Drone Surveys and Scanning: These technologies provide accurate site data, reducing the chances of miscalculations or surprises.
4. Define the Scope in Detail. Vague or incomplete scopes of work are a recipe for change orders. Take the time to develop a comprehensive and precise scope that leaves no room for interpretation. Break Down Deliverables. Specify what’s included and what’s excluded in every aspect of the project. Clarify Client Expectations: Ensure the client understands what’s achievable within the budget and timeline. Set Contingency Plans: Account for potential variables, such as material price fluctuations or minor design tweaks.
5. Build Flexibility into the Schedule and Budget. While it’s impossible to predict every issue, planning for contingencies can soften the blow when changes are unavoidable. Allocate Contingency Funds: Reserve a percentage of the budget (typically 5 percent to 10 percent) for unforeseen expenses. Plan for Time Buffers: Build extra time into the schedule to accommodate minor delays.
6. Invest in Training and Quality Control. Errors during construction often stem from poor execution or misunderstandings onsite. Investing in training and quality assurance can prevent these mistakes. Train Teams on Project Standards: Ensure that every team member understands the specifications and quality requirements. Perform Regular Inspections: Catch issues early through frequent quality checks.

The Bottom Line: Prevention Pays Off

Change orders may be an inevitable part of construction, but their frequency and impact can be minimized through proactive planning, clear communication and smart use of technology. By addressing potential issues early and fostering collaboration, construction teams can reduce costly disruptions and deliver better results for clients.

Zach Simmons is president of Stronghold Construction.