Changes are common in construction, but unmanaged changes can create disputes, unplanned work, delayed approvals, and cost overruns. A clear change-order process records what changed, why it changed, who requested it, how it affects cost and schedule, and whether the required approvals have been obtained before the team proceeds.
Capture the change at its source
Record the request as soon as it is identified, including the project location, description, requester, date, related drawing or instruction, and reason. Link the request to the relevant RFI, field condition, owner direction, or design revision. Early documentation makes it easier to understand the history later.
Assess cost and schedule impact
Evaluate labor, materials, equipment, subcontractor pricing, overhead, and any applicable markups according to the contract and company policy. Schedule effects may include added work, resequencing, procurement lead times, or rework. Keep assumptions visible so reviewers can understand how the proposed value was calculated.
Route approvals consistently
Define who can request, review, approve, and authorize work. Store the approval status and supporting evidence in a central record. Informal verbal direction may be unavoidable in some urgent situations, but the team should follow the contract's notice requirements and document the direction promptly with the appropriate parties.
Connect changes to budgets and schedules
Once approved, update the project budget, forecast, schedule, purchase commitments, and relevant scope documents. If systems remain disconnected, a change may be approved in one place but absent from the cost report or field plan. Assign ownership for each update and verify completion.
Review pending changes regularly
Maintain a log of proposed, submitted, approved, rejected, and executed changes. Review aging items and unresolved scope questions with project leadership. A clear log improves communication with clients and helps managers understand potential exposure without treating unapproved amounts as guaranteed revenue.
Prevent changes from getting lost
Review the change log at a predictable interval with project management, commercial, and accounting stakeholders as appropriate. Identify requests that have no owner, pricing that has expired, and work that may be proceeding before the required authorization. Record the next communication and its due date. Keep pending changes separate from approved contract value in reports, while still showing the exposure they create. This balanced view helps leadership understand the potential impact without overstating secured revenue.