Few words cause more tension between owners and builders than “change order.” On a commercial or multi-family project in the Okanagan, changes are almost inevitable, but surprise costs and schedule slips are not. Understanding how change orders work, and how to manage them, is one of the most practical ways to protect your budget.
What a Change Order Actually Is
A change order is a written amendment to the construction contract that adjusts the scope of work, the contract price, the schedule, or some combination of the three. It is the formal record that both the owner and the contractor agree on what is changing and what it will cost. Without that paper trail, verbal instructions on site quickly become disputes at the end of the project.
Change orders are not a sign that something went wrong. Owners request upgrades, tenants alter layouts, authorities add conditions, and sometimes the ground or an existing structure is different from what the drawings assumed. The goal is not to eliminate changes but to make sure each one is priced, approved, and documented before the work proceeds.
Common Reasons Changes Happen in BC
The most common source of change is incomplete or uncoordinated design. When structural, mechanical, and electrical drawings conflict, the conflict is discovered on site and resolved through a change. The second most common source is owner-driven scope: a different finish, a larger tenant improvement, or an added amenity once construction is underway.
Site conditions also play a role, particularly in the Okanagan. Hillside lots in Kelowna and West Kelowna, unexpected rock, groundwater, and buried services can all alter the foundation and site work. Regulatory changes, such as a revised requirement from the city or an updated code interpretation, can add scope that nobody could price at tender.
How the Contract Type Shapes Change Orders
The way a change is priced and who bears the risk depends heavily on the contract. Under a stipulated price contract, the contractor carries the risk of the defined scope, so changes are measured against the original documents and any gap in those documents tends to be argued over. Clear drawings matter a great deal in this model.
With a guaranteed maximum price contract, there is typically a contingency and a more open-book approach, which makes it easier to see where money is going and to draw on contingency for design development items before a formal price increase is needed. Whichever model you choose, the contract should state who can authorize a change, how it will be priced, and how quickly pricing must be submitted.
Pricing, Approval, and Timing
A well-run change order process follows the same steps every time. The change is described, the affected trades provide pricing, the construction manager reviews it for reasonableness, and the owner approves it in writing before the work begins. The approval should state the cost, the markup, and any adjustment to the completion date, because time is often the part of a change that gets forgotten.
Speed matters. A change that is priced and approved within days costs less than one that is argued about for weeks while the trades wait or proceed at risk. Owners who respond quickly and designers who issue clear revised drawings keep the cost of each change down and protect the sequencing of the remaining work.
Reducing Change Orders Before Construction Starts
The most effective way to control change orders is to prevent the avoidable ones. Thorough preconstruction services, including constructability reviews, early trade input, and a realistic contingency, catch many conflicts while they can still be fixed on paper. Locking down owner decisions on finishes and layouts before tender removes another major source of change.
It also helps to separate genuine changes from corrections. If a drawing omission or coordination error causes extra work, the discussion about responsibility belongs between the designer and the contractor, not as a surprise to the owner. A construction manager who keeps clear records can sort these out fairly and quickly.
How Team Construction Approaches Change Orders
For more than 45 years, Team Construction has managed changes with a documented process that keeps owners informed of cost and schedule impact before any work proceeds. If you are planning a project in the Okanagan and want clear, transparent control over your budget, contact our team to start the conversation.