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....

Early Identification as a Trainable Skill
The ability to identify potential changes early is a skill that can be tested, trained, and managed just like a craft skill.
Two Planning Dimensions
Some of the impacts you see on a project are not as clear as a design change, conflict, or obviously changed condition. Some impacts, such as poor project sequencing or congested work areas are hard to notice if you don’t have good tracking systems.
Changes - Impacts Beyond the Direct Costs
Contractors don't typically see the full negative impact of changes and, therefore, don’t put the right level of resources into their management.