Construction is unpredictable, and most disputes between general contractors and owners trace back to change orders handled poorly. A few disciplined habits turn change order management from a liability into a routine part of the job.
Keep a record of every change
Treat the project record like a running narrative. Note every change as it happens: last-minute client requests, schedule shifts, whatever comes up underground. It's more than paperwork. It's a record of how the project evolved, and it heads off conflicts caused by miscommunication or a faulty memory.
Send change orders as soon as possible
In construction, time is worth as much as money. Sending a change order promptly isn't just good practice, it's necessary. It stops a domino effect that can hit the schedule and the owner relationship, and it signals professionalism.
Build trust through communication
Communicate openly with the project owner at every stage. Regular meetings, with any changes front and center, keep the atmosphere positive and stop small setbacks from turning into major problems.
Train your team
Make sure everyone, site managers and subcontractors included, knows how to handle a change order. Run training sessions where the team practices recording and submitting changes. An informed team makes fewer mistakes from internal miscommunication.
Negotiate fairly
Change orders can spark disputes, but fair negotiation turns them into opportunities. Lay out why the change is needed and what it costs. Working through it together builds rapport and can strengthen the relationship. A change order finalized fairly leaves the client satisfied, not just billed.
A well-managed change order is an active step toward the project's success and the client's satisfaction, not a formality to rush through.
Frequently Asked Questions
Why do change orders cause disputes between GCs and owners?
Most change order disputes come from poor handling: changes that weren't recorded as they happened, weren't sent promptly, or weren't communicated clearly. Without a documented trail, each party remembers the agreement differently.
How quickly should a change order be sent?
As soon as possible. Delaying a change order sets off a chain reaction that can damage the schedule and the owner relationship, while prompt delivery signals professionalism and commitment.
Who on the team needs to understand change order management?
Everyone involved, including site managers and subcontractors. When the whole team knows how to record and submit changes, fewer errors come from internal miscommunication.
Built for Contractors. Built for Construction Accounting.
APARBooks is purpose-built construction accounting software for general contractors and bookkeepers. Manage job costing, AIA progress billing, subcontractor payments, retainage, change orders, lien compliance, and WIP reporting in one place.
