Best Practices for Managing Change Orders in Construction Projects

Change orders are one of the most common sources of conflict in construction, and one of the most preventable. At Linley Welwood, we regularly work with contractors, developers, and property owners across British Columbia who find themselves in disputes that could have been avoided with clearer change order management from the start.

What should you know before signing a construction contract?

Why Change Orders Deserve Careful Attention

A change order modifies the original construction contract, adjusting scope, cost, timeline, or some combination of all three. Even straightforward changes carry legal weight. In British Columbia, how a change order is documented and approved can directly affect your rights under the Builders Lien Act, your ability to recover costs, and your exposure if a dispute arises later.

Treating change orders informally, whether through a verbal agreement or a quick text message, creates real risk. The absence of proper documentation is one of the most consistent factors we see in construction disputes.

Establishing a Clear Process Before Work Begins

The best time to set up your change order process is before you need it. When reviewing or negotiating a construction contract, make sure it addresses who has authority to approve change orders on both sides, what format is required for submitting a change order request, what timelines apply for approval so work isn’t delayed, and how pricing will be calculated, whether fixed price, time and materials, or a negotiated adjustment.

When these terms are established upfront, both parties understand the rules. That clarity reduces friction when changes inevitably come up.

Documenting Every Change, Every Time

No matter how minor a change seems, document it. This is the single most important habit in change order management.

What a Change Order Should Include

A well-prepared change order typically covers a clear description of the work being added, removed, or modified, the reason for the change, the adjusted contract price and how it was calculated, any impact on the project schedule, and signatures from all authorized parties.

In British Columbia, written documentation is particularly important given the lien rights available to contractors, subcontractors, and suppliers under the Builders Lien Act. Undocumented changes can complicate lien claims and make it harder to demonstrate the value of work performed.

Keep a Running Change Order Log

Maintaining a sequential log of all change orders throughout the project gives you a clear audit trail. Each entry should reference the original contract, the specific change order number, the date of approval, and the cumulative cost impact. This log becomes invaluable if a dispute arises or if the project is reviewed at completion.

Managing Cost and Schedule Impacts

Change orders affect more than the line item being changed. When scope shifts, it can ripple into labour scheduling, material procurement, and project milestones. Before approving a change order, think carefully about direct costs such as materials, labour, and equipment, as well as indirect costs like overhead, extended site time, and administrative burden. Schedule implications matter too: will this change push the completion date, and does the contract address delay costs?

If a change order significantly impacts schedules, document that impact. Verbal acknowledgments of delays are difficult to rely on later. Confirm and date any agreement on resulting impacts, changes, or timeline adjustments in writing.

Learn how to protect yourself from construction delays and cost overruns.

When Disputes Arise Over Change Orders

Even with good processes in place, disagreements happen. Common flashpoints include disputes over whether a change was approved at all, disagreements about the scope of what was agreed to, and conflicts over pricing.

In British Columbia, construction disputes may involve builders’ lien claims, contract enforcement, or claims for unjust enrichment when work was performed without proper authorization. Having thorough change order documentation significantly strengthens your position in any of these situations.

If you’re facing a change order dispute, or want to build a contract that prevents one, we’re ready to hear your story.

Practical Habits That Reduce Risk

Consistently applied, these habits make change order management more reliable. Confirm all verbal discussions in writing, even if it’s just a follow-up email. Never proceed on unapproved change orders without documented acknowledgment of the risk. Review your change order process with legal counsel when drafting or negotiating construction contracts. And involve your legal team early if a dispute is developing, rather than after positions have hardened and options have narrowed.

Protecting Your Project Starts with the Right Support

Managing change orders well is part technical discipline, part legal awareness. When the process breaks down, the consequences can be significant: delayed projects, unpaid work, and contested lien rights. At Linley Welwood, our construction law team helps British Columbia contractors, owners, and developers build stronger contracts and navigate disputes when they arise. If you’re dealing with a change order issue or want to make sure your contracts are set up to protect you, reach out to our team at 604-850-6640. We’re here to help you move forward with confidence.

BC Resources

• [BC Builders Lien Act — BC Laws](https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/96041_01)
• [BC Housing — Owner Builder and Construction Resources](https://www.bchousing.org)
• [BC Construction Association (BCCA)](https://www.bccassn.com)
• [Builders Lien Act Guide — Courthouse Libraries BC](https://www.courthouselibrary.ca)
• [BC Supreme Court Civil Rules (Dispute Resolution)](https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/168_2009_00)