Three Easy Ways to Reduce Change Orders

An unexpectedly high number of change orders on a construction project can quickly exhaust contingency funds, delay the schedule and increase project costs. While some changes are unavoidable (e.g., change resulting from technology advancements, as is the case in hospital construction), many can be circumvented if the project team works collaboratively and relies on an in-place system that provides transparency and a disciplined process for approving changes.

Change isn’t always bad, but on a construction project, it usually isn’t good.Change orders can wreak havoc on a construction schedule and raise project costs beyond the allocated budget.

According to the April 2006 research study “Comparative Analysis of Total Project Costs with Versus without a Construction Manager” prepared for the CMAA Research and Development Committee, change orders can account for as much as 28 percent of total project costs. “Most organizations want predictability. They set budgets and schedules, and change orders disrupt both of those,” explains Charles Thomsen, FAIA/FCMAA, an industry consultant and author.