Once your project’s design is finalized, that should be the end of it, right? You would think so, but all too often building owners are surprised with change orders from their general construction contractors. And these changes can bring your entire construction project to a screeching halt. This usually depends on the size of the change, scope of the project, budget, and whether you’re working with a general construction contractor or a design build firm. In this article, we’ll cover how these factors affect change orders as well as the following:
- The Risks of Change Orders
- Why Are Change Orders So Common?
- How to Prevent (Most) Change Orders
- Our Approach to Change Orders
The Risks of Change Orders
Whether you decide you want to change the design of your project or your contractor discovers a flaw in the original plan, adjustments during the building process can be complicated. Once a new idea or issue is discovered, all work on the project needs to stop until the change has been approved through the proper channels. The owner, architect, contractor, and any subcontractors involved in the project need to review the proposed change and ask the following questions:
- Is this change necessary?
- Is this change safe to implement?
- What do we need to execute this change that we don’t already have?
- How much will this change cost? Will we be able to stay within budget?
- How will this change affect timeline? Can we afford to prolong the build?
If you decide to move forward with a change order, there is no guarantee that your projected budget and timeline will stick. In fact, change orders usually require additional costs and time to implement. And these factors only increase the further along in construction you are, as it becomes more difficult to change aspects that have already been finalized. But if a change is necessary to keep your building safe or up to code, it can feel like there’s no other option but to agree to the expensive change order. And at that point in the process, there isn’t.
Why are Change Orders So Common?
Change orders are incredibly common when you work with a general construction contractor. This is largely due to the stress of the bidding process, as general construction contractors feel the pressure to win you over from the competition. If not handled properly, this can result in several issues that lead to change orders down the road:
Inaccurate Budgeting
Just because a general construction contractor’s bid is low that does not mean they will save you money. Sometimes low bids indicate that the contractor doesn’t have enough experience with projects of your size or in your industry and are underestimating what it will take to complete it. As a result, change orders be used for the work and materials overlooked in the initial bid.
Deception
Some general construction contractors intentionally bid low to lure you in, knowing they will bill you with multiple change orders after the contract has already been signed. These “bait and raise” contractors understate the complexity of your construction project and then look for every possible place where a change could be made to charge you more money. While not all change orders can be prevented with proper planning, many can. But once you’ve signed on with a “bait and raise” contractor, it’s going to cost you whether you continue working with them or try to legally get out of your contract.
Generalized Plans
A thorough design process is the best way to prevent change orders from happening. However, too often general construction contractors don’t provide detailed enough plans. A strong plan should include the following:
- Proof that the owner owns the land where the project will be built
- Accurate dimensions in design drawings
- Structural, mechanical, HVAC, plumbing, and electrical system designs
- Preferred material lists
- Required subcontractors/trades
- Specific timeline with projected milestone and end dates
- Cost estimates
Additionally, these plans should avoid using vague descriptors like “modern,” or “state of the art” since these can mean different things to different people. Explain exactly what you want to your contractor and ensure you both have a clear understanding in writing of what the finished product should look like. This minimizes the risk of change orders due to the final product not meeting your vision.
Poor Coordination
When you work with a general construction contractor, you’re also working with other subcontractors to handle specific aspects of your project like the electrical or welding work. Having multiple points of contact like this can quickly become frustrating. This often leads to miscommunication and makes it difficult for your team to be on the same page to know what can and can’t be done. If all contractors and subcontractors are not brought in together during the planning process, then certain design aspects could be overlooked. And as the project progresses, you’ll learn that something approved at the very beginning isn’t actually doable, or isn’t safe, and you’ll have to stop everything to find a new solution.
How to Prevent Change Orders
Not every change order can be prevented. For example, there’s no way to stop yourself from changing your mind about the design halfway through the build. But there are several steps you can take when working with a general construction contractor to prevent common issues that require changes later on.
First, learn how to avoid “bid and raise” contractors that want to trick you into future expenses by promising a low bid. The best way to do this is by looking out for these signs:
- Lack of detailed construction drawings and specifications
- No specific timelines
- Suspiciously low bids
- Poor reviews that mention frequent change orders
If you want to minimize change orders in your project, you need to work with a team that works well together. Miscommunication is a major reason why change orders happen. But with general construction contractors, unless you are willing to supervise meetings between contractors, there is no guarantee that everyone will have the information they need to avoid surprises.
When you work with a design build firm, the team of contractors and architects are already assembled. They have already worked together and will ensure that everyone is on the same page from day one. While this might not prevent all change orders, it will certainly help prevent many of them. The collaborative nature of design build firms should stop disastrous issues from popping up, but if they do we have you covered.
Change Order FAQs
Why do change orders happen so often in construction?
They usually stem from inaccurate bids, incomplete design documents, miscommunication, or unexpected conditions discovered during the build. Most can be reduced with clear communication and comprehensive planning from the start.
How can change orders derail a construction project?
Each change order can halt progress while teams assess cost, materials, and timelines. These delays can quickly compound, pushing projects over budget and past deadlines.
Are all change orders bad?
Not always. Some are necessary to correct safety issues or comply with updated codes. The goal is to minimize unnecessary ones through proper design coordination and transparent communication.
What’s the most common cause of unnecessary change orders?
Incomplete or generic design documents. When plans lack detail, the construction team has to make assumptions, which often leads to rework later.
Why are low bids from contractors risky?
Some contractors intentionally underbid to win the job, planning to make up profits later through change orders. These “bait and raise” tactics cost owners far more in the long run.
How can a design build firm prevent most change orders?
By integrating architects, engineers, and builders under one roof, design build firms ensure coordination from day one. This collaboration reduces errors, missed details, and scope gaps that typically lead to change orders.
What happens when multiple subcontractors aren’t aligned?
Misalignment between subcontractors can lead to major conflicts in design or scheduling. In a design build model, all subcontractors work from one unified plan and communication system, minimizing confusion.
What should be included in a proper change order document?
It should clearly describe the change, why it’s necessary, its cost and schedule impact, and who approved it. Proper documentation keeps accountability and transparency at the forefront.
How can I protect my budget from unexpected changes?
Request detailed bids, ask for fixed fee or guaranteed-maximum-price contracts, and partner with a firm that tracks costs closely through every phase of construction.
Are design build firms more transparent about costs?
Yes. Since both design and construction teams collaborate from the start, budgets are created with real-time input from both sides, leading to fewer surprises and fairer pricing.
Ensure a Seamless Project Process with Rose Design Build
Change orders can completely derail your construction project’s timeline and budget. But with the right design build firm, common issues can be prevented during the design phase and reduce the possibility of change orders. Not only will this save you time and money, but it will also stop the stress of having to figure out how to make the change happen. Contact us today to talk with one of our experts about your project and get started planning your next building without the worry of surprise costs down the line.