• Understand your contract thoroughly: Pay close attention to clauses related to change orders, including timeframes for notification, required documentation, and approval authorities.
• Maintain clear and detailed records: Document every step of the process, from initial identification to final approval and implementation.
• Standardize your process: Use consistent templates and procedures for all change orders to minimize errors and streamline review.
• Communicate early and often: Proactive and transparent communication with all stakeholders can prevent misunderstandings and delays.
• Negotiate fairly: Be prepared to justify your costs and schedule impacts with accurate data.
• Avoid starting work without written approval: This is crucial for protecting your rights and ensuring payment.

Common Mistakes to Avoid:
Navigating change orders effectively is crucial for project success. Avoiding these common mistakes will help you maintain clear communication, prevent disputes, and ensure timely compensation:

• Not Documenting Changes in Writing: Relying on verbal agreements or informal discussions for project alterations is a significant pitfall. Without clear, written documentation – including emails, meeting minutes, and formal notices – it’s nearly impossible to prove the scope, cost, or approval of a change. This often leads to disputes and potential financial losses. Always get it in writing.
• Late Approval of Changed Work: Starting any work related to a change before receiving formal, written approval from the project owner is a major risk. If the owner later disputes the necessity, cost, or impact of the change, you may not be compensated for the work performed. Always wait for the signed approval.
• Failing to Submit Change Order Requests on Time: Most construction contracts specify a strict timeframe for submitting change order requests after the event triggering the change occurs. Missing these deadlines, even by a few days, can lead to forfeiture of your right to claim compensation or time extensions, regardless of how legitimate the change was. Understand your contract’s notification requirements and adhere to them diligently.
• Submitting Change Orders Late and Expecting Immediate Approval: Presenting a change order well after the work has been completed or is already underway can create tension and delays. Owners need reasonable time to review, verify, and approve proposed changes. Submitting late requests often leads to protracted review periods, impacting your project’s cash flow and overall schedule. Proactive submission is key.
• Providing Unclear or “Rough” Cost Estimates: A change order must include a detailed and justifiable cost breakdown. Submitting a “rough estimate” or an ambiguous cost figure lacks professionalism and transparency. Owners expect a clear understanding of all expenses, including labor, materials, equipment, overhead, and profit. Vague costing will inevitably lead to lengthy negotiations, disputes, and delayed approvals. Be precise with your numbers.