Commercial Construction Change Orders: Why They Happen and How to Avoid Them

Few phrases make commercial property owners more nervous than “We need a change order.”

For many owners, change orders are associated with budget overruns, project delays, and unexpected frustration.

The reality is more nuanced.

Not every change order is avoidable... and not every change order is a bad thing.

Understanding why change orders happen and how they can be minimized helps owners make better decisions before and during construction.

What Is a Commercial Construction Change Order?

A change order is a formal modification to the original construction contract.

It documents a change in:

• Scope of work

• Project cost

• Construction schedule

• Materials

• Building systems

• Owner-requested revisions

Rather than relying on verbal conversations, change orders create a written record that protects both the owner and the contractor.

Common Reasons Change Orders Occur

Owner Requests

Perhaps the most common reason.

An owner decides to:

• Upgrade finishes

• Add offices

• Move walls

• Change lighting

• Add technology

• Expand the project

These are voluntary changes and are typically priced before the work proceeds.

Existing Conditions

Renovation projects often reveal surprises once demolition begins.

Examples include:

• Hidden structural damage

• Plumbing issues

• Electrical deficiencies

• Moisture damage

• Code deficiencies

These conditions often cannot be discovered until construction is underway.

Design Changes

Sometimes the design evolves after construction has already started.

Architectural revisions can affect:

• Structural systems

• Mechanical layouts

• Electrical distribution

• Ceiling heights

• Finish selections

The later these decisions occur, the more expensive they become.

Code Requirements

Building officials may require additional work during permitting or inspections.

Examples include:

• Fire protection upgrades

• Accessibility improvements

• Energy code compliance

• Structural modifications

These changes help ensure the finished building meets current regulations.

Are Change Orders Always Bad?

No.

Some change orders actually improve the finished project. Owners frequently decide that investing a little more now creates better long-term value.

Examples include:

• Higher-quality flooring

• Better lighting

• Additional insulation

• Improved technology infrastructure

• Future expansion capabilities

The key is making informed decisions—not avoiding change altogether.

How to Reduce Change Orders

While some changes are unavoidable, many can be prevented.

Invest in Preconstruction

The more decisions made before construction begins, the fewer surprises you’ll encounter later.

Complete Due Diligence

Evaluate the property thoroughly before purchasing or renovating.

Early investigations often uncover issues that would otherwise become expensive surprises.

Finalize Selections Early

Waiting to choose finishes, fixtures, or equipment often leads to schedule disruptions and pricing changes.

Choose an Experienced Commercial Contractor

An experienced contractor identifies potential issues early, coordinates closely with the design team, and communicates risks before they become costly problems.

What Owners Should Expect

A well-managed change order process should always include:

• A clear description of the work

• Pricing

• Schedule impacts

• Owner approval before work begins

Transparency protects everyone involved.

Final Thoughts

Change orders are a normal part of commercial construction but they should never become the norm.

The best projects aren’t the ones with zero change orders.

They’re the ones where changes are identified early, communicated clearly, and managed professionally. Most costly change orders can be reduced through thorough planning, comprehensive due diligence, and strong communication before construction begins.

Planning a Commercial Project?

Vision Building Group works with commercial property owners throughout Middle Tennessee to reduce costly surprises through preconstruction planning, due diligence, budgeting, and early collaboration.

If you’re planning a commercial construction project, we’d be happy to help you establish a clearer path before work begins.