Change orders are part of nearly every construction project, and their frequency is rising year after year.
In fact, industry research shows that they can add 10% or more to the overall project cost, creating serious pressure on budgets and timelines.
For general contractors, this makes change order management one of the most critical aspects of project success.
At their core, change orders are formal documents that update the original contract by adjusting the scope, cost, or schedule. They provide flexibility when unexpected conditions, client requests, or design issues arise.
However, while they help projects adapt, they also introduce added complexity. If not handled properly, change orders can cause disputes, slow down approvals, and erode profit margins.
In this article, we’ll explore why change orders happen, the challenges they create, and how construction change order software helps GCs stay organized and in control.
Change orders happen for many reasons, and most of them are outside a contractor’s control.
Here are some common causes of change orders in construction:
Contractors may uncover hidden utilities, poor soil, or contamination that was not in the original plan.
For example, a team might discover unstable soil during excavation, forcing a redesign of the foundation. These surprises quickly increase both scope and cost.
Incomplete drawings or miscoordination between trades can create conflicts once construction begins. Correcting these issues often requires a formal change order.
Owners may change their minds about finishes, add new features, or adjust the scope to meet new regulations or market demands.
For example, a client might request an upgraded lobby design midway through a commercial build. While these changes improve the end result, they add complexity for contractors managing schedules and budgets.
If certain products are unavailable, teams must source alternatives, which can raise costs and shift schedules.
It can impact exterior work. Heavy rain, snow, or extreme heat may require rescheduling and updating contracts.
The U.S. DOT Volpe report highlights that change orders usually arise from technical, organizational, or financial causes.
With tools like construction workflow automation software, subcontractor management software, and project tracking software for construction, GCs can respond faster and keep projects moving.
You can also read: 4 Reasons General Contractors Are Winning with Construction Tech.
Change orders are part of construction, but they come with major challenges that can slow projects and strain budgets.
Each challenge has real consequences for contractors, subcontractors, and owners if not managed properly.
Work often pauses while waiting for a change order to be reviewed and approved.
Crews sit idle, schedules stretch, and costs rise for both general contractors and subcontractors.
Even small approval delays can snowball, pushing back inspections and completion dates.
Research shows that projects with more change orders experience higher cost growth overall.
Added materials, extended labor, and design adjustments can quickly push a budget past its original estimate.
Owners may be unprepared for the extra expense, leading to frustration and tension.
When the scope, pricing, or responsibility for a change is unclear.
For example, if a subcontractor bills for extra work that the owner did not explicitly approve, the result is often a payment dispute.
The 2023 Arcadis Global Construction Disputes Report found a 42% jump in dispute values in North America, underscoring how costly disagreements have become.
Many GCs still rely on paper forms or scattered emails to manage change orders.
Without a centralized system, documents are misplaced, approvals lag, and errors creep in. This confusion delays pay applications and erodes trust between project partners.
A change order that lacks details on costs, approvals, or schedule impacts may not hold up if a dispute arises.
GCs can end up paying out-of-pocket or fighting legal claims simply because records were incomplete.
Even small changes can ripple through the timeline.
For instance, redesigning a wall could delay electrical work, inspections, and subsequent trades.
Without real-time project tracking, these disruptions compound, causing expensive overruns.
In summary, the six biggest change order challenges are:
Together, these challenges highlight why clear processes and reliable construction compliance tracking software are essential.
You can also read: How to Choose a Construction Management Software.
Managing change orders well can mean the difference between a project that finishes smoothly and one that faces costly delays.
To reduce risks, general contractors should follow a few proven practices.
Every change order follows the same path from request to approval.
This creates consistency and avoids confusion across different teams and projects.
Always use formal request forms that capture scope changes, cost impact, and schedule adjustments. Having everything documented reduces disputes and builds accountability.
It is also critical to assign clear responsibility for each step. Whether handled by a project manager, architect, or engineer, knowing who owns the approval prevents bottlenecks.
At the same time, communicate updates frequently to subcontractors, owners, and field crews. Regular communication helps minimize misunderstandings.
Contractors must also track budget and schedule impacts in real time.
For example, if a client requests adding more windows, the change could affect electrical layouts, inspections, and material orders.
Without tracking, small adjustments quickly ripple into major disruptions.
Finally, conduct a post-project review to evaluate what worked and what needs improvement. This cycle of feedback ensures stronger processes for future jobs.
When combined with tools like construction project management software, these best practices become far easier to implement.
Technology supports standardization, improves communication, and automates construction documentation so GCs spend less time chasing paper and more time moving projects forward.
You can also read: Construction Project Management: Manual Workflow vs. SuperConstruct.
Managing change orders manually often slows down projects. Paper forms get misplaced, email threads pile up, and there is no clear audit trail.
For general contractors, this means slower approvals, frustrated teams, and a higher risk of disputes.
Also, subcontractors feel the impact when delays hold up payments or create confusion about what work has been approved.
With modern tools like SuperConstruct, the process becomes more efficient. The platform automates RFI management, approvals, and tracking, ensuring every step is consistent and transparent.
Change orders are directly linked to contracts, pay applications, and schedules, keeping financial data and timelines in sync.
SuperConstruct also sends real-time notifications, so requests never sit unnoticed.
At the same time, the system stores a complete audit trail, which protects GCs during audits or disputes. For subs, the visibility into approvals and payments builds trust and reduces uncertainty.
The result is faster approvals, fewer disputes, and better cash flow visibility. By adopting construction change order software, GCs can eliminate wasted time, simplify collaboration with subs, and keep projects moving forward.
You can also read: 5 Things General Contractors Can Do Today To Reduce Stress.
Change orders are an unavoidable part of construction, but they don’t have to derail a project. With clear processes and the right tools, general contractors can handle them efficiently and keep work on track.
Modern construction project management software provides the structure, visibility, and automation needed to minimize disputes and control costs.
With SuperConstruct, GCs gain a simple way to streamline approvals, align with subcontractors, and improve cash flow. The result is smoother projects, fewer delays, and stronger relationships.
👉 Book a demo today and see how SuperConstruct transforms change order management.
Change orders often arise from unforeseen site conditions, design errors, or client-driven scope changes. Each of these can shift the original contract and require formal approval to move forward.
They usually increase costs and extend timelines. Even small scope changes can ripple across trades, causing delays and pushing budgets higher.
A change order is a negotiated adjustment to cost, scope, or time that both parties agree on. A construction change directive, however, allows work to proceed immediately while final pricing is still under review.
Tools like construction change order software and construction project management software automate requests, track approvals, and store audit trails. This reduces delays, improves accuracy, and strengthens compliance for general contractors.
SuperConstruct helps contractors, developers, and owners streamline construction project management with real-time tracking, automation, and reporting.
Construction management software helps managers, contractors, owners, and developers manage schedules, budgets, documents, and project communication.
Manage construction projects without spreadsheets using modern construction management software for scheduling, budgeting, collaboration, and real-time tracking.
