5 Most Valuable Steps to Manage Construction Change Orders
Change orders are one of the most common sources of conflict in construction. They happen when project owners request modifications to design, scope, or timelines after contracts are signed. Without clear processes, they create disputes over costs, delays, and responsibilities. Construction attorneys help contractors, developers, and subcontractors manage these changes with strong provisions. By setting rules for the process, attorneys keep projects on track and protect financial interests.
According to Rhumbix, citing Dodge Data & Analytics, change orders account for about 10% of total contract value, with some projects seeing costs rise 25%. That proportion underscores how essential it is for contracts to anticipate change orders.
Require Written Approval
Every change order must be documented in writing. Verbal agreements create uncertainty and unnecessary disputes. Written approval ensures all parties agree before work begins, protecting contractors and subcontractors from liability. Contracts often require signatures from owners, project managers, and subcontractors. These procedures provide enforceable evidence and reduce miscommunication.
Define Pricing Adjustments
Cost disputes are a major challenge. Construction lawyers draft provisions that require updated pricing and itemized costs for every approved change, ensuring transparency. This protects contractors from absorbing added labor or material expenses while giving owners an accurate picture of the financial impact. Contracts may also require owners to approve additional funding before modifications begin.
Adjust Project Timelines
Change orders almost always affect schedules. Yet many contracts fail to explain how deadlines should shift. Attorneys link every approved change to new, realistic completion dates. These clauses prevent owners from unfairly holding contractors to the original schedule and protect subcontractors from penalties for delays. Attorneys often include buffer days or grace periods to give project managers flexibility.
Clarify Scope of Work
Change orders often create confusion about responsibilities. Attorneys draft provisions that explain how duties shift when the scope changes. This clarity prevents overlap between trades and ensures subcontractors know exactly what work falls within their updated role.
Establish Dispute Resolution Procedures
Even well-prepared change orders can still lead to conflict. Attorneys anticipate this by adding provisions that require mediation or arbitration before litigation. These clauses encourage faster and less expensive resolutions, saving contractors and developers both time and money. Attorneys also clarify how arbitration fees will be shared, avoiding surprise costs.
Recognizing a Reputable Construction Attorney
Choosing the right attorney can make or break a construction project. Not all legal professionals have the same depth of experience in construction law. Contractors, developers, and homeowners should look for these hallmarks when evaluating a construction attorney:
Proven Experience — Decades of handling California litigation and contract disputes.
Track Record of Results — A History of successful verdicts and settlements.
Specialized Knowledge — Familiarity with zoning, permits, change orders, subcontractor disputes, and fraud claims.
Clear Communication — Ability to explain complex concepts in practical terms.
Strategic Guidance — Proactive approach to preventing disputes.
Client-Centered Approach — Protecting financial interests and reducing risk for contractors, developers, and property owners.
What happens when a project moves forward without clear change order rules? The answer is often costly delays, budget disputes, and strained relationships. Reliable attorneys help contractors and developers avoid these pitfalls. With over 25 years of litigation experience and $1M+ verdicts secured, a firm like Alves Radcliffe LLP ensures change orders are managed with precision.
Disclaimer: This content is for educational purposes only and does not constitute legal advice.