Change orders are the project's friction — the inevitable meeting the unpriced. Here's the playbook.
Why change orders happen
The design's gaps (the incomplete CDs — the bulletins; the coordination's misses), the owner's changes (the program's evolution — the finishes' upgrades), and the field's surprises (the differing conditions — the unforeseen; the existing's unknowns). The cause determines the posture — the owner's change vs. the design's omission price differently.
Pricing fairly
The direct costs (the labor, the material, the equipment — the documented), the markups (the OH&P — the contract's percentages; the tiered — the sub's and the GC's), the time (the schedule's — the extended general conditions; the acceleration's — the premium), and the documentation (the daily reports — the contemporaneous; the photos — the proof).
The process that prevents disputes
The written authorization (the signed CO — the work never proceeding on the verbal), the timely pricing (the 7-14 days — the contract's; the work's proceeding under the construction change directive where the urgent), the log (the numbered — the status; the forecast — the total exposure), and the design's review (the A's — the merit; the E's — the errors-and-omissions).
Negotiating firmly
The independent estimate (the owner's — the check), the market's (the competitive — the bid where the large), the leverage (the schedule's — the timing; the relationship's — the future work), and the walk-away (the dispute's — the DRB, the mediation; the documentation winning).
The owner's defenses
The complete design (the 100% CDs — the gaps minimized), the contingency (the protected — the owner's; the 5-10%), the allowances (the minimized — the defined), and the GMP (the cap — the shared savings).
The bottom line
The change order is the project's truth serum — the pricing revealing the contract's fairness, the process revealing the team's discipline. Price fairly, authorize in writing, log everything, and negotiate with the data. The project that manages change orders manages its budget; the project that doesn't manages its lawyers.