Successfully Reducing Change Orders is Achieved in The Planning
Reducing Change Orders
In the world of construction and remodeling, change orders are an inevitable part of the process. They can cause delays, inflate budgets, and introduce stress for clients, contractors, and design teams alike. While it’s impossible to eliminate change orders entirely, a proactive approach rooted in meticulous planning, collaboration, and communication can significantly reduce their frequency and impact. Costo Construction has developed a comprehensive five-point plan focused on upfront due diligence and strategic collaboration to mitigate change orders effectively. This article explores this plan in detail, emphasizing how each step contributes to smoother project execution and better long-term outcomes.
Understanding Change Orders and Their Impact
Before delving into Costo Construction’s approach, it’s important to understand what change orders are and why they matter. A change order is a formal modification to the original construction contract, often involving scope, design, materials, or schedule adjustments. These changes can be initiated by the owner, architect, or contractor due to unforeseen conditions, design flaws, or evolving project needs.
While some change orders are necessary and unavoidable, frequent or poorly managed change orders can lead to:
Increased project costs
Delays in project completion
Frustration among stakeholders
Compromised quality and warranty issues
Therefore, minimizing change orders is crucial for delivering projects on time, within budget, and to the desired standards.
Costo Construction’s Five-Point Plan to Mitigate Change Orders
At Costo Construction, we believe that a strategic, disciplined approach during the early phases of a project can dramatically reduce the occurrence of change orders. Our five-point plan emphasizes thorough planning, collaboration, and detailed documentation. Let’s explore each point in detail.
1) Engage an Accredited AIA Architect and Licensed Structural Engineer for Due Diligence
The foundation of a successful project lies in comprehensive early-stage planning. Costo Construction advocates for engaging an AIA-accredited architect and a Licensed California Structural Engineer specifically for the purpose of performing extensive due diligence. Their role is pivotal in ensuring that the project’s design, permitting, and structural elements are thoroughly vetted before construction begins.
Why is this important?
An experienced architect and structural engineer can identify potential issues early—such as zoning restrictions, building code compliance, structural challenges, or site-specific concerns—allowing for proactive resolution rather than reactive fixes that lead to change orders.
Key actions include:
Coordination with third-party consultants: Engaging professionals such as surveyors, Title 24 energy consultants, building envelope specialists, and geo-technical engineers ensures all aspects of the project are scrutinized.
Permitting planning: Early permit planning reduces delays caused by incomplete or conflicting documentation.
Thorough due diligence: This process helps uncover potential obstacles or design conflicts before they manifest during construction.
By investing in detailed planning and third-party expertise upfront, Costo Construction ensures that the project’s foundation is solid, reducing the likelihood of change orders caused by overlooked issues.
2) Engage Costo Construction’s Pre-Construction Services
Pre-construction services are an integral part of our strategy to reduce change orders. These services encompass detailed planning, cost estimating, scheduling, and constructability reviews before breaking ground. We work with Architects and Engineers and Consultants to plan projects properly.
What are pre-construction services?
According to the American Institute of Architects, pre-construction services involve “a collaborative planning process that includes design development, cost estimating, and scheduling to ensure project feasibility and alignment with client goals” https://www.aia.org/articles/68486-pre-construction-services.
Benefits of pre-construction services include:
Early cost control: Identifying and resolving design or material issues before construction starts prevents costly modifications later.
Improved scheduling: Establishing realistic timelines based on detailed planning reduces the risk of delays.
Constructability reviews: Ensuring that designs are feasible and incorporate best practices minimizes unforeseen issues.
Enhanced communication: Facilitating collaboration among all stakeholders creates a shared understanding of project scope and expectations.
By engaging Costo Construction’s pre-construction team early, clients gain clarity and confidence, significantly reducing the potential for change orders driven by miscommunication or incomplete planning.
3) Foster Collaboration and Clear Directives Among All Stakeholders
Successful projects depend on effective collaboration. It’s essential that the architect, structural engineer, contractor, and client operate with a shared understanding and clear directives, and that each entity is a willing and well intentioned collaborator.
How do we achieve this?
At Costo Construction, we encourage all parties to:
Work toward common goals: Budget, style, schedule, and quality objectives are articulated clearly from the start.
Share information openly: Regular meetings and updates ensure that everyone is aligned.
Follow a unified design and construction approach: Clarify expectations regarding materials, finishes, and design intent.
Establish decision-making protocols: Define who approves changes and how deviations are managed.
This collaborative approach minimizes ambiguity, which is often a root cause of change orders. When everyone is on the same page, the likelihood of costly revisions diminishes considerably.
4) Involve the Builder Early in Design and Material Decision-Making
A critical step in reducing change orders is involving the builder during the design phase. Early involvement allows the contractor to provide valuable insights into constructability, cost implications, and material selection.
Why is this important?
Design decisions made without builder input can lead to unforeseen costs or schedule disruptions during construction. For example, selecting expensive or hard-to-source materials late in the project can cause delays and cost creep. Warranty concerns with certian products or installation methodologies should also be discussed up front.
Key benefits of early builder involvement include:
Addressing design or material issues proactively: Identifying potential problems before they escalate.
Ensuring realistic budgets: Providing input on material options that meet aesthetic goals while staying within budget.
Enhancing warranty and quality: Recommending durable, readily available materials.
Reducing change orders: Catching potential conflicts early avoids costly revisions.
At Costo Construction, we believe that early collaboration with the builder is a best practice that results in fewer change orders, smoother construction, and a more satisfied client.
5) Demand Heavily Detailed Drawings and Specifications
One of the most effective ways to mitigate change orders is to demand comprehensive, detailed design documentation from your architect and design team.
What does this entail?
Heavily detailed drawings: Including site plans, plan views, reflected ceiling plans, elevations from all angles (interior and exterior), detailed vertical surfaces, flooring details and cross sections.
Material specifications: Clear make and model, including images, vendor details, and sales representatives for every product so trades can discuss the details of costs, lead times and instalaltion methods.
Alternatives and substitutions: While detailed specifications are essential, allowing the builder to suggest substitutions based on cost, schedule, quality, and warranty is prudent.
Why is detail so important?
Lack of detailed drawings and specifications often leads to ambiguity, which can cause change orders once construction is underway. For example, discovering tile materials or elevation details halfway through the project is a recipe for cost creep and schedule delays.
The key to success:
Establish a comprehensive design package before bidding and construction.
Avoid allowances for major materials, which are less precise and more prone to change orders.
Engage in value engineering upfront to explore cost-effective alternatives.
Supporting Evidence:
An article published by the American Institute of Architects (AIA) emphasizes that engaging with AIA-accredited architects—particularly those with in-house or closely affiliated interior design capabilities—adds significant value to projects. According to the AIA, these professionals provide well-coordinated, comprehensive design services that help clients avoid costly mistakes and change orders during construction. Their extensive education and accreditation ensure they manage complex projects effectively, reducing surprises that lead to change orders.
“AIA members are committed to providing high-quality, well-coordinated design services that help clients avoid costly mistakes and change orders during construction.”
— https://www.aia.org/articles/68486-benefits-of-working-with-aia-members
At Costo Construction, we advocate for exhaustive documentation to set clear expectations and prevent surprises. When projects are driven by detailed plans and specifications, change orders decrease significantly, leading to more predictable budgets and timelines.
The Role of Due Diligence in Reducing Change Orders
Every project Costo Construction has worked on that involved detailed planning, professional involvement, and early pre-construction engagement has experienced fewer change orders. Our experience demonstrates that investing time and resources upfront pays dividends during construction.
For example, projects with heavily detailed plans—covering everything from elevation drawings to material specifications—have seen a dramatic reduction in mid-project revisions. Conversely, projects that deferred critical decisions or relied on allowances often encountered cost creep and schedule disruptions.
Mitigating Cost Creep with Allowances
While allowances can serve as buffers, they are not a substitute for detailed planning. Relying on allowances for materials like tiles or finishes often results in change orders once actual selections are made. It’s preferable to specify exact materials upfront, with contingencies for substitutions if justified.
Costo Construction’s Philosophy: Closing Information Gaps and Managing Surprises
Our approach emphasizes closing information gaps during pre-construction and developing comprehensive contracts that reflect all collected data. This philosophy ensures transparency, accountability, and clarity for all involved parties.
But even with meticulous planning, surprises can happen.
Local utility requirements, unforeseen site conditions, or municipal regulations may necessitate adjustments mid-project. While these cannot always be predicted, our goal is to mitigate their impact through thorough due diligence and proactive planning.
We don’t claim to eliminate change orders entirely, but our emphasis on thorough due diligence and proactive planning ensures they are minimized and managed effectively. By closing information gaps early, establishing clear communication channels, and creating comprehensive contracts that reflect all collected data, Costo Construction aims to deliver projects that stay on schedule, within budget, and to the highest standards.
Final Thoughts: The Power of Due Diligence and Proactive Collaboration
Reducing change orders is not about eliminating surprises entirely but about mitigating their frequency and impact through diligent planning, detailed documentation, and collaborative teamwork. At Costo Construction, we firmly believe that upfront investment in thorough pre-construction processes pays dividends during construction, leading to fewer disruptions, lower costs, and higher client satisfaction.
Our five-point plan—engaging qualified professionals for deep due diligence, leveraging comprehensive pre-construction services, fostering collaboration, involving the builder early, and demanding detailed drawings and specifications—is designed to create a smooth, predictable project flow.
Remember: The most successful projects are built on a foundation of clear, comprehensive information. When all stakeholders work together with shared goals and a commitment to due diligence, the need for change orders diminishes significantly.
While surprises may still occur—such as utility requirements or unforeseen site conditions—our approach ensures these are managed proactively rather than reactively. The result is a construction process that is more efficient, cost-effective, and ultimately more satisfying for everyone involved.
About Costo Construction
With years of experience in delivering high-quality construction and remodeling projects, Costo Construction prioritizes upfront planning and collaboration to ensure project success. Our philosophy centers around reducing change orders through meticulous pre-construction work and transparent communication, providing clients with peace of mind and exceptional results.
In conclusion, the key to reducing change orders lies in due diligence upfront, strategic collaboration, and detailed planning. By following Costo Construction’s five-point plan, clients can enjoy a smoother construction journey with fewer surprises, better control over costs, and a final product that meets or exceeds expectations.
If you want to learn more about how Costo Construction can help minimize change orders on your next project, contact us today for a consultation. https://costoconstruction.com/uncategorized/best-value-projects/