General Contractor Change Orders: 8 Critical Rules That Prevent Budget Disasters

Change orders are where construction projects go sideways with your general contractor. They’re also inevitable—no project goes exactly as planned. The key is managing them professionally with your general contractor so they don’t destroy your budget or your relationship. Here’s how to handle construction change orders without getting burned by your general contractor.

Why Change Orders Happen with Your General Contractor

Understanding why change orders occur with your general contractor helps prevent unnecessary ones and manage legitimate ones professionally. Changes fall into several categories:

Owner-Directed Changes

You decide you want something different than what was specified to your general contractor. Maybe you upgrade finishes, add features, or modify the layout after seeing the space take shape. These are legitimate changes with your general contractor—you’re allowed to change your mind—but they cost money.

Professional commercial construction contractors budget for reasonable owner changes and handle them smoothly. Your general contractor should have clear processes for managing these requests.

Design Issues

Sometimes drawings provided to your general contractor are incomplete, inconsistent, or unbuildable. Resolving these issues requires changes. Who pays depends on the issue and contract terms with your general contractor.

Unforeseen Conditions

Hidden problems discovered by your general contractor—bad soil, concealed structural issues, undocumented utilities, hazardous materials—require solutions that weren’t in the original scope. These generate legitimate change orders with your general contractor.

According to the Associated General Contractors of America, unforeseen conditions represent one of the leading causes of project disputes, making clear contract provisions with your general contractor essential.

Best Practices for Owners Working with a General Contractor

How you handle change orders affects both project cost and your relationship with your general contractor. Follow these practices:

Require Written Authorization from Your General Contractor

No change order work should proceed without your written approval to your general contractor. Ever. This should be explicitly stated in your contract with your general contractor.

If a general contractor proceeds with work without written approval, you’re not obligated to pay. Professional contractors understand and respect this requirement.

Get Pricing Before Approval from Your General Contractor

Know the cost and schedule impact before authorizing work with your general contractor. Don’t approve changes “to be priced later” with your general contractor—that’s a recipe for disputes.

Professional general contractors provide detailed change order proposals showing scope, cost breakdown, markup, schedule impact, and payment terms.

Understand Markup from Your General Contractor

Change orders from your general contractor typically include markup for overhead and profit—often 10-20% over direct costs. This should be defined in your contract with your general contractor.

Red Flags to Watch For with Your General Contractor

Watch for these warning signs that may indicate problems with how your general contractor handles change orders:

• Change orders presented by your general contractor after work is already complete
• Vague pricing from your general contractor without backup detail
• Excessive change orders for “unforeseen conditions” from your general contractor
• Pressure from your general contractor to approve immediately without time to review

According to research from the Construction Industry Institute, thorough preconstruction services from your general contractor reduce unforeseen conditions change orders by 40-60%.

The Professional General Contractor’s Approach

Understanding how professional general contractors handle change orders helps owners recognize good practices:

Clear Process Defined Upfront

Professional commercial construction contractors and qualified general contractors define their change order process in the contract upfront.

Timely Notification from Your General Contractor

Good general contractors notify owners immediately when conditions arise requiring changes. Early notification allows exploring alternatives before work proceeds with your general contractor.

Fair Pricing from Your General Contractor

Professional general contractors price change orders fairly, using actual costs plus reasonable markup consistent with contract terms.

Preventing Unnecessary Changes with Your General Contractor

While some changes are inevitable, many can be prevented through proper planning with your general contractor:

Invest in Preconstruction

Thorough preconstruction services from your general contractor identify and resolve issues before construction begins.

Choose Experienced General Contractors

Experienced general contractors anticipate issues and raise them during preconstruction rather than after work starts. Their expertise prevents many changes that less experienced builders encounter.

At Bowser Construction Group, we approach change orders professionally as your trusted general contractor with clear processes defined upfront. Our preconstruction services minimize unnecessary changes.

The Bottom Line on General Contractor Change Orders

Change orders with your general contractor don’t have to be adversarial or budget-destroying. With professional general contractors, clear processes, and mutual respect, they’re simply part of managing project evolution.

Ready to Start Your Project Right? Selecting a general contractor with professional change order processes protects your investment.

Learn more about our commercial construction services and our commitment as your trusted general contractor to transparent project management.

Discover our preconstruction planning approach that minimizes change orders through thorough planning before construction begins with your general contractor.