02/02/2026
Time may change me, but I can't trace time.
Did you know that David Bowie's classic song 'Changes' was written about construction claims and changes?
Ok, that may not be true.
Changes are sometimes inevitable on construction projects, whether they're the result of differing site conditions, scope gaps, contract document errors or omissions, or owner changes. When a plan is in place to deal with changes when they occur, the process can be less stressful and contentious. This is accomplished by having a robust Change Order Management Program with company-wide policies, procedures, and systems in place so team members have guidance when responding to changes.
Benefits of establishing a change order management program include:
+ Awareness of contract clauses addressing change order submission timelines as well as clarification of entitlement
+ Importance of periodic schedule updates, sometimes defined in contracts, and archiving the baseline and previous schedule updates (if you claim a delay, you have to prove it!)
+ Understanding of what needs documented, and how it is documented, distributed and archived (daily reports, field reports, meeting minutes, photos and videos, emails, etc.)
+ Procedures for cost accounting and tracking extra work, materials, and equipment, crews, etc.
+ Assignment of in-house claims expert to review change orders for completeness and accuracy (does your change order include overhead, profit, and bond increases?)
+ Dispute resolution best practices like negotiation strategies or a dispute resolution ladder
+ Clear approaches for managing risk throughout all phases of the project
But a written formal change order management program is only successful when expectations are clear, training is provided, and ongoing program improvement is performed.
In my Claims and Changes class, I often reference Chapter 4 - How to Develop and Implement a Change Order Management Program from the text, 'How to Get Paid for Construction Changes' by Steven S. Pinnell. This is a great resource for any organization looking to develop a thorough change order management program.
