Change Orders: Why They're Not as Scary as You Think

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Let’s talk about a phrase that tends to send shivers down the spine of anyone involved in construction, renovations, or project management: change orders. You’ve probably heard it before, and maybe you even dread it. After all, the moment someone says “change order,” it can feel like the project’s gone off-track, the budget’s spiraling, and things are starting to get complicated. But I’m here to tell you: change orders are not a bad word.

In fact, they’re an essential part of any project—and when approached the right way, they can actually be a tool for success. Let’s dive into what change orders are, why they happen, and how you can turn them into an opportunity rather than a headache.

So, What Exactly is a Change Order?

A change order is essentially a formal document that outlines any changes to the scope of a project after the original agreement has been signed. These changes could be anything from adding extra features to a building, changing materials, adjusting timelines, or dealing with unexpected issues that arise during the project.

In construction, this could mean adding an additional room to a house, upgrading windows that were initially planned for a lower grade, or dealing with an unanticipated structural problem. In other industries, change orders might relate to design changes, new software features, or even shifts in timelines.

Why Do Change Orders Happen?

Change orders don’t happen just because someone forgot to plan well or because someone is being difficult. They often arise due to unforeseen circumstances, changes in project requirements, or new information that comes to light as work progresses.

Here are a few common reasons why change orders happen:

• Unforeseen Conditions: Sometimes, once work begins, the team uncovers something that wasn’t apparent during the planning phase. Think of construction workers finding issues with the foundation, or designers realizing that a new software tool can’t do exactly what they envisioned.

• Design Changes: Clients sometimes have a change of heart about the design or functionality of the project midway through. Maybe they want to add an extra room or adjust a feature that wasn’t included in the initial plans. Or, perhaps the project needs to be reworked to meet new regulations.

• Material/Availability Changes: Materials might be out of stock or discontinued, requiring a switch to something else. This can trigger a change order to reflect the new materials being used, which can also affect cost.

• Scope Adjustments: Sometimes, what was originally planned isn’t enough. You might find that the original scope didn’t meet expectations, or new needs emerge during the project that weren’t anticipated at the start.

• Delays or Time Changes: Sometimes, projects get delayed, either because of weather, supply chain issues, or resource availability. The timeline might need to be extended, requiring a change order to reflect the new timeline.

Why Change Orders Aren’t the End of the World

Change orders are a natural part of any project and can actually be a sign that things are progressing and adapting to real-world conditions. Here’s why they don’t have to be a scary thing:

1. They’re an Opportunity for Flexibility The beauty of a change order is that it allows both parties to adjust the project based on new information or evolving needs. The flexibility to adapt to changing circumstances is key to ensuring that the project is both functional and meets the client’s expectations.

2. They Help You Stay on Track (and on Budget) A formal change order document helps both parties recognize when a project is shifting scope, whether it’s in terms of timeline or budget. By putting changes in writing, both the contractor and client have a clearer understanding of the project’s status. This helps avoid misunderstandings and prevents hidden costs from piling up. It might seem like an inconvenience, but it actually helps maintain transparency and accountability.

3. They Allow for Better Decision-Making When a change order is issued, it’s an opportunity to pause and reassess. Do you still want to move forward with the change? Is there a more efficient way to approach it? Change orders let you make adjustments before things move too far along, ensuring that all parties are on the same page.

4. They Can Improve the Final Outcome A project rarely goes exactly according to plan, and sometimes the initial idea needs to evolve. Change orders are a way of embracing those necessary shifts in the process. For example, if a new feature or design element makes the final result even better, then the change order has created an opportunity for improvement.

5. They’re Part of Managing Expectations A change order provides a formal means of revisiting and refining the project’s scope. It ensures that everyone’s expectations remain aligned throughout the project, reducing the chances of unpleasant surprises at the end.

How to Handle Change Orders Like a Pro

Even though change orders aren’t inherently bad, it’s important to handle them effectively to keep the project running smoothly. Here are a few tips for dealing with change orders:

1. Communicate Early and Often: When a change comes up, discuss it as soon as possible. The earlier you identify a potential change, the easier it will be to manage and adjust the project accordingly.

2. Be Transparent About Costs and Time: Whether it’s a minor tweak or a major change, it’s essential to clearly communicate any implications for cost and timeline. This helps set proper expectations and avoids surprises down the line.

3. Document Everything: Whether you’re the contractor or the client, make sure every change order is documented thoroughly. Written records help protect everyone and ensure that there’s a clear understanding of the changes and their impact on the project.

4. Negotiate Fairly: Changes in scope should come with adjustments in budget and time. It’s important to approach change orders with a fair mindset, ensuring that both parties feel the agreement is balanced.

5. Learn from Past Projects: If you’ve had change orders in previous projects, take the time to reflect on how they were handled. What worked well? What could be improved? This will help you streamline the process for future projects.

Final Thoughts: Change Orders Are Just Part of the Process

In the end, change orders aren’t something to fear—they’re a normal, even necessary, part of many projects. They represent growth, adaptation, and improvement. While they may require extra paperwork or a bit of negotiating, they provide an important opportunity to adapt the project to better meet the needs of the client, the situation, or the available resources.

So next time you hear the words “change order,” don’t panic. Embrace the change, take control of the process, and use it as an opportunity to create something even better than you initially imagined!