Change Orders and Average Cost Impact to the Project (Industry Survey)

Changes are a part of the construction process with many underlying causes.

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While we have all heard the average of 10% changes on construction projects, it is interesting to look at an industry study for validation.  

Change Management: Project Changes, state of the industry survey.

This study by HBRC categorized the range of contract changes and the percent of projects within that range. The average is 10% and none of the projects had 0% changes.  

Engaging key contractors to work on the project earlier will lower the amount of changes related to design conflicts while protecting the aesthetics of the design.  

Another interesting part of the study was that 43% of respondents DID NOT have a consistent process for managing changes.  

A rigorous change management process starts at the earliest stages of design development with rigorous weekly reviews.  

During construction, the definition of a change should be broadened beyond what may become a cost issue for the project owner and also managed through a rigorous weekly process such the Last Planner System.  


Change Orders and Average Cost Impact to the Project (Industry Survey)
Change orders are a fact of life in construction. Improve profitability, cash flow and customer satisfaction by effectively managing changes. Build a foundation for success with 12 steps to improve pricing and 11 negotiating strategies for the whole project team....

Related Training
Change Orders and Average Cost Impact to the Project (Industry Survey)
Change orders are a fact of life in construction. Improve profitability, cash flow and customer satisfaction by effectively managing changes. Build a foundation for success with 12 steps to improve pricing and 11 negotiating strategies for the whole project team....

A Broader Definition of a Change on a Construction Project
The first step for contractors improving their management of changes on a project is simply earlier identification. This starts with a better definition of what a change really is, and then setting standards within your company around that definition.
Four Critical Elements of an Effective Task
Maximizing labor productivity starts with defining exactly what needs to be delivered and then breaking it down into tasks that can be effectively managed.
Change Order Profit Improvement
A 10% improvement in change order pricing for a $50M per year contractor will add $500K to their bottom line. This is not about simply marking up the change more, but rather, including the many costs that are typically missed or undervalued.