Construction Change-Order Review Checklist
A structured checklist for construction owners reviewing change orders, with explanations of why each item matters and what to do when something is missing.
Resources
In-depth explanations of change order concepts, contract law, and owner strategy.
A structured checklist for construction owners reviewing change orders, with explanations of why each item matters and what to do when something is missing.
Duplicate costs — costs that appear more than once across a change order submission or across multiple change orders — are one of the more subtle overpayment risks in construction. This article explains how to find them.
Change orders are one of the most common sources of cost overrun on construction projects. This guide explains why owners review them, what to look for, how the review process works, and the most common problems owners encounter.
Before approving a change order, owners should receive specific supporting documentation. This article explains what backup is required — labour time sheets, material invoices, subcontractor quotes, and equipment logs — and what to do when it is missing.
Labour is typically the largest and most variable component of a construction change order. This article explains how to review crew size, hours, wage rates, and labour burden to identify unsupported claims.
Material invoices and equipment rental logs are critical backup for change order cost claims. This article explains what to look for when reviewing material pricing, quantities, and equipment costs — including owned equipment billed at daily rates.
Change orders include multiple markup layers applied to direct costs. This article explains overhead and profit, GC markup on subcontractors, compounding, bonds, and insurance — and how your contract governs what rates are allowable.
Before approving any change order, owners should determine whether the claimed work is actually extra — or whether it falls within the original contract scope. This article explains how to identify scope gaps, document conflicts, and scope ambiguity.
Most construction contracts require contractors to provide written notice within a specified period after discovering a potential change. Missing the notice deadline can affect the validity of a change order claim. This article explains how notice requirements work.
Allowances are budget placeholders in the original contract for work whose scope or cost is not yet determined. When actual costs differ from the allowance, the difference is resolved through a change order. This article explains how allowances work and what owners should watch for.
Construction contingency is a budget reserve that diminishes as change orders are approved. This article explains the difference between owner and contractor contingency, how to track drawdown, and what burn rate tells you about project risk.
Some change orders are straightforward; others contain patterns that warrant close attention before approval. This article describes ten warning signs that an owner should look for in any change order submission.