Change Order Management for Construction PMs

Change Orders are Inevitable

Almost every construction project has changes. How you manage them determines whether they become problems or just adjustments.

Types of Changes

• Owner-directed changes
• Design errors or omissions
• Unforeseen conditions
• Code or regulatory changes

Change Order Process

1. Identify and document the change
2. Request pricing from contractor
3. Negotiate fair pricing
4. Evaluate schedule impact
5. Obtain owner approval
6. Issue formal change order
7. Authorize work to proceed

Cost Negotiation

• Require detailed breakdowns
• Verify labor and material quantities
• Apply agreed markup rates
• Consider time-sensitive pricing

Preventing Unnecessary Changes

• Thorough design review before construction
• Complete investigations and testing
• Clear scope documentation
• Owner decisions before bidding