Common Problems That Lead to Change Orders

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By Juan Rodriguez

A change order is an official request for additional time and funds in order to complete
revised contractual obligations. The reasons behind construction change orders vary from
project to project, but most are related to one of five different types of issues. Change orders
can be a headache when the complexity and timeframe of the requested addition impose
schedule constraints. Therefore, change order management should be included with every
contract, as changes often can lead to legal battles, disputes, and arbitration.

Errors or Omissions in Drawings

The most common reasons for construction change orders are errors or omissions in the
project scope. Inadequate details, misrepresentation, or failure to prepare a complete set of
detailed drawings can lead to serious change order requests. Errors and omissions may relate
to the building design and/or to the land or environment where the construction is sited. To
prevent these common problems, it is important to review all contract documents and verify
that the owner-provided information is accurate and adheres to the latest standards and
specifications.

Design Changes
It is not uncommon for builders or developers to start a construction project before the
project scope is completely defined or without final drawings. This type of error is perhaps
most common on design-build projects, where the ongoing process of design can lead to
work stoppages and cost overruns. This can result in labor issues due to delays in project
execution and can have a significant impact on overhead costs.

Inaccurate Specifications
Sometimes the construction drawing asks for one product or material, but the specs call for
something else. This situation is very common on construction projects where the drawings
are assigned to different consultants, each one of them acting on their own, without any kind
of direction from a team leader. This can lead to a situation in which the contractor quotes on
one article, while the owner insists on a different article when it's time for the article to be
installed.

Soil Problems

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A soil problem is the most common type of unforeseen condition and usually results from a
failure to perform a complete soil boring. An inadequate soil study can lead you to expect
certain conditions based on the specific testing criteria, but if the soil profile varies, it might
present additional challenges and soil types throughout the site. Assumptions about soil
conditions or other issues regarding the construction of the project can be different from the
actual conditions found on the site.

Substitutions
Contractors often make substitutions when specified materials are not available or when
there is a shortage of supplies. This can lead to a change order and possibly an additional
issue: a request for a credit if the cost of the substitute material is less than that of the
specified material. In this case, the contractor may need to make up the difference in cost
between the different materials or products. In other substitution situations, the owner may
ask for upgrades during the construction process.

This request should initiate a change order for extra compensation and time associated with
the proposed modifications.

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