A construction change order is a formal written amendment to an existing construction contract that modifies the original scope of work, adjusts the contract price, or changes the schedule — often all three at once. For developers and property owners in Kelowna and across the Okanagan, change orders are a standard feature of almost every project, but they are also one of the most common sources of budget overruns and delays when they are not managed with discipline. Understanding what triggers a change order, what it should contain, and how to evaluate one before approving it puts owners in a much stronger position to protect their project and their investment.
Why Construction Change Orders Happen
Change orders arise from a wide range of circumstances. Unforeseen site conditions — buried services, unexpected soil bearing, or structural discoveries not apparent during design — are among the most common sources. Owner-directed additions occur when a client decides mid-construction to upgrade finishes, add a feature, or modify a floor plan in response to new tenant requirements. Design errors and omissions, where drawings contain conflicts or are incomplete, generate field changes that require formal documentation before the trades can proceed.
On a multi-family or commercial project in the Okanagan, some change orders are virtually inevitable. The goal is not to prevent all of them — that is neither realistic nor the right measure of a well-run project. The goal is to ensure each one is evaluated carefully, priced transparently, and approved in writing before the work is done.
What a Change Order Should Include
A change order that presents only a lump sum does not give the owner enough information to evaluate whether the pricing is reasonable. A properly prepared change order describes the scope of work in plain language, provides a labour and material cost breakdown, and states the schedule consequence — whether the change adds days to the project, can be absorbed within the existing programme, or has no timing effect at all.
Written authorization is equally important. Whether the change originated from a formal owner instruction, an architect’s supplemental instruction, or a documented site direction, the paper trail connecting the work to the authorization protects everyone. Projects that accept verbal instructions and deal with the paperwork later tend to accumulate unresolved items that surface as disputes at substantial completion, when the financial stakes are highest.
How Change Orders Affect Your Budget
The cumulative cost impact of change orders is one of the most underappreciated financial risks in construction. Individual changes may appear minor — an extra circuit, a finish substitution, a revised wall layout — but tracked across a twelve-month build, approved change orders can represent a significant increase above the original contract value. Owners who focus only on the base contract and lose track of approved changes routinely find themselves surprised at final reconciliation.
The right practice is to maintain a running change order log throughout the project: original contract value, each approved change with its cost and date, and an updated contract total. Paired with a properly sized construction contingency from the outset, this gives the owner a clear, current view of where the budget stands at all times — without waiting for a monthly report.
Change Orders and Your Project Schedule
Cost is not the only dimension of a change order’s impact. Schedule consequences are equally significant and often less carefully tracked. Some changes require materials with longer lead times than the original specification, which can introduce delays that compress the remaining programme. Others require rework — removing completed work, revising it, and reinstalling — consuming time that is not always recoverable through acceleration.
When the project schedule is tied to a financing condition, a presale milestone, or a tenant lease commencement, even a modest delay can carry financial consequences that far exceed the direct cost of the change. Evaluating the schedule impact before approving a change — not after — is a discipline that well-run projects maintain consistently.
Reducing Change Orders Through Better Pre-Construction Planning
The most reliable way to reduce the volume of change orders is through thorough pre-construction planning. Projects that reach construction start with complete, coordinated drawings, fully specified materials, and a trade-by-trade budget generate significantly fewer field changes. When structural, mechanical, and electrical systems are resolved at the design stage, the unforeseen conflicts that drive unplanned changes are substantially reduced.
Early constructor involvement during design — a defining feature of construction management delivery — also identifies constructability issues and cost-saving opportunities before they translate into expensive field changes. Engaging a construction manager while design is still in progress is consistently one of the most cost-effective investments an owner can make.
How Team Construction Approaches Change Orders
At Team Construction Management, every change order is presented with full scope, cost, and schedule documentation before it is reviewed for approval — and our open-book approach means you always have the detail you need to make an informed decision. If you are planning a commercial or multi-family project in Kelowna or the Okanagan, contact us today to talk through your project.
.