Change Orders in Construction: Why They’re Not Inevitable
Save Your Schedule and Budget
In the construction industry, many have grown accustomed to the idea that change orders are just part of the process. Too often, contractors underbid projects at razor-thin or even negative margins, assuming they’ll make up the difference later with change orders.
This approach creates mistrust, disrupts schedules, and inflates budgets. More importantly, it damages long-term client relationships, something we at Hellem Construction Group believe should never be sacrificed.
While it’s unrealistic to think that change orders can be eliminated entirely (construction always carries variables), the truth is that many change orders are avoidable. By investing in better planning, collaboration, and transparency, you can significantly reduce them.
Here’s how.
1. Collaborate Early and Often
When project owners, engineers, and contractors begin working together early, the benefits last throughout the project. Early collaboration builds trust, uncovers potential risks, and helps establish a unified approach.
At Hellem Construction Group, we’ve seen firsthand how early engagement prevents surprises. The sooner we’re involved whether during site preparation, excavation planning, or utility coordination the easier it is to keep projects on time and within budget.
2. Invest in Thorough Planning
Strong planning is the foundation of minimizing change orders. For example, we recently completed a large-scale sitework project where change orders represented just over 1% of the total contract value well below industry averages.
That level of success comes from:
Conducting subsurface investigations to understand soil and rock conditions.
Identifying potential utility conflicts early.
Factoring weather, drainage, and slope into construction sequencing.
The more you know before breaking ground, the fewer surprises you’ll encounter later.
3. Share Information and Ideas Freely
Too often, change orders arise because one party withholds information as “leverage” later in the project. That mindset turns the process adversarial and drives up costs.
Instead, successful projects encourage open communication and idea-sharing. When engineers, contractors, and owners are comfortable collaborating, projects improve before the first piece of equipment even mobilizes.
At Hellem, we believe knowledge should be pooled, not guarded. That’s why our approach to sitework and excavation projects across New Jersey includes transparency from start to finish.
4. Address Risk Management Collectively
Every construction project carries risk like unstable soils, buried utilities, contaminated materials, or unexpected groundwater. The question is: how is that risk managed?
Collaboration allows risks to be identified earlier and addressed as a team. Often, someone on the project team has prior experience nearby that offers valuable insight. By openly discussing risks, you minimize exposure for everyone and create a stronger, more resilient project plan.
The Bottom Line: Change Orders Don’t Have to Derail Your Project
Change orders are not an inevitable “cost of doing business.” By building a culture of collaboration, planning thoroughly, and encouraging transparency, owners and contractors can significantly reduce them.
At Hellem Construction Group, we specialize in excavation, site development, and utility trenching projects where planning and precision are everything. Our mission is to deliver results without costly surprises and to strengthen the trust we build with every client.
If you’re planning a commercial, residential, or municipal project in New Jersey, reach out to us today. Let’s build your project on a foundation of trust, transparency, and success without unnecessary change orders.
Frequently Asked Questions About Change Orders in Construction
1. What is a change order in construction?
A change order is a formal document that modifies the original construction contract. It may adjust the scope of work, budget, or project schedule. Change orders often arise due to unforeseen site conditions, design changes, or miscommunication during the planning process.
2. Are change orders always unavoidable?
No. While some change orders are necessary due to uncontrollable factors like unexpected subsurface conditions, many can be minimized with proper site investigation, early collaboration, and transparent planning. At Hellem Construction Group, we prioritize upfront planning to reduce surprises and costly changes.
3. Why do so many construction projects have high change order costs?
In some cases, contractors intentionally bid low, expecting to make up profit with change orders later. This practice damages trust and inflates project budgets. By contrast, companies like Hellem Construction Group focus on accurate estimating, risk management, and collaboration to deliver predictable results.
4. How can I avoid costly change orders on my project?
The best way is to:
Involve your contractor early in the design process.
Invest in thorough site assessments and soil testing.
Maintain open communication between owners, engineers, and contractors.
Choose a contractor with proven experience in site development, excavation, and utility work.
5. Do change orders always increase costs?
Not necessarily. While most change orders involve additional costs, some are owner-directed scope changes (like upgrading materials). Still, unexpected changes typically raise expenses and delay schedules, which is why proactive planning is critical.
Continue Reading