Change Orders 101: Why They Happen and How to Manage Them

Few phrases cause more anxiety for a project owner than "we need to talk about a change order." But change orders aren't inherently a sign that something went wrong — they're a normal part of construction, and understanding why they happen is the first step to keeping them from derailing a budget or a schedule.

Carrigg Commercial Builders, a general contractor based in Manchester, NH, manages change orders across projects throughout New England, from commercial build-outs to occupied healthcare and federal facility renovations. The pattern holds across project types: owners who understand how change orders work going in are far better positioned to manage them well than owners encountering the process for the first time mid-project.

What a Change Order Actually Is

A change order is a formal, documented modification to the original construction contract — adjusting scope, cost, schedule, or some combination of the three. It requires agreement from both the owner and the contractor before the change is implemented and billed. The formality matters: a change order is what protects both sides from disputes later about what was agreed to and why.

The Most Common Causes

Change orders generally trace back to a handful of root causes. Unforeseen site conditions — existing structural issues, outdated utilities, or hazardous materials discovered once work begins — are especially common in renovation and occupied-facility projects, where as-built conditions don't always match original drawings. Design gaps or omissions surface when drawings didn't fully anticipate a real-world condition. And owner-requested scope changes happen when priorities shift mid-project, which is a normal, legitimate reason for a change order — not a failure by either party.

Why Renovation and Occupied-Space Projects See More of Them

New construction on an open site has fewer unknowns than a renovation inside an existing, occupied building. Once walls open up, contractors sometimes find conditions that weren't — and couldn't have been — fully visible during design: outdated wiring, structural conditions from a previous build phase, or systems that don't match as-built records. This is a normal feature of renovation work, not a sign of poor planning, though it does make proactive communication about the possibility of change orders important from day one.

How Well-Managed Projects Handle Them

Strong change order management starts before a single change is ever needed: thorough pre-construction investigation, clear documentation of existing conditions, and a defined process for pricing and approving changes quickly once they arise. Owners should expect a clear explanation of cause, cost, and schedule impact for every change order — not just a number to sign off on. Speed matters too; a change order that sits unresolved for weeks can stall a schedule far more than the underlying issue would have on its own.

What This Means for New England Owners

Carrigg Commercial Builders approaches change order management as a discipline built into the project from the start — thorough pre-construction planning, clear documentation, and direct communication when conditions require a change. For owners and facility directors, the most useful preparation isn't hoping to avoid change orders altogether. It's choosing a contractor who handles them transparently when they come up.

Carrigg Commercial Builders is a Service-Disabled Veteran-Owned Small Business providing commercial construction and general contracting services throughout New England. To connect with Robert Carrigg's team, visit carrigg.com or call (603) 252-4343.