A change order records an agreed change to contracted construction work. It may add work, remove work or revise how the work will be performed. It should also document any corresponding adjustment to the contract price and project schedule.
Changes are common in renovation because the project team is working inside an existing building. However, “changes happen” should not become an excuse for unclear pricing, undocumented instructions or work proceeding without the required authorization.
The Canadian Construction Documents Committee describes construction as a dynamic process and publishes guidance on contract changes, pricing, responsibilities and the cumulative effects of multiple changes. The specific procedure for an individual project comes from its construction contract.
A change order is written documentation of an agreed addition, deletion or revision to contracted work. It should describe the revised scope, state the added cost or credit, identify the schedule effect and show the required authorization.
Why do commercial renovation change orders happen?
Owner-requested changes
The owner may change a layout, material, product, quantity or finish after the original agreement has been completed.
Design revisions
A designer or consultant may issue revised information to address coordination, performance or regulatory requirements.
Concealed conditions
Demolition may expose damaged framing, undocumented wiring, abandoned plumbing, moisture or other previously hidden work.
Authority requirements
Permit review or inspection may identify additional work required for the approved project to proceed.
Product availability
A specified product may become unavailable or have a delivery date that conflicts with the construction sequence.
Scope clarification
Drawings, specifications or contract language may contain an ambiguity requiring the parties to document the intended work.
A proposed substitution should be reviewed for function, compatibility, appearance, warranty, maintenance, price and schedule before it is approved.
What should a change-order request contain?
The level of detail should match the size and complexity of the change. A minor material credit may need less supporting information than a structural or mechanical revision.
The Canadian Construction Documents Committee publishes CCDC 16, a guide addressing changes in the contract, pricing, responsibilities and related change-management issues. The parties must still follow the procedure in their own applicable agreement.
What is the difference between an allowance and a change order?
An allowance is part of the original pricing and reserves an amount for an item that has not yet been fully selected or quantified. A change order modifies the contracted work, price or time.
| Situation | Allowance adjustment | Scope change |
|---|---|---|
| Flooring selection | The contract includes a flooring allowance and the owner selects a product priced above or below it. | The owner adds flooring to another room that was not included in the original scope. |
| Plumbing fixture | The selected fixture is reconciled against an existing fixture allowance. | The owner adds another sink and associated plumbing work. |
| Door hardware | The final hardware package is reconciled against the stated hardware allowance. | The layout changes and requires additional doors and hardware. |
Clear allowances reduce confusion, but they do not replace proper change documentation when the work itself changes.
How should concealed conditions be handled?
Existing commercial buildings can contain conditions that were not reasonably visible before demolition. When a concealed condition is discovered, the affected work should be managed in a controlled sequence.
- Stop affected work where appropriate.
- Protect the exposed area and surrounding property.
- Record photographs, dimensions and location.
- Notify the owner or authorized representative.
- Determine whether testing or consultant input is required.
- Develop practical repair or revision options.
- Price the agreed response.
- Document the expected schedule effect.
- Obtain the authorization required by the contract.
- Proceed and update the change log.
The contractor should not assume that every hidden condition automatically authorizes unlimited additional work. The owner should not assume that every unseen condition was included in a fixed price unless the contract states that it was.
A documented commercial renovation planning process can resolve many selections and coordination questions before demolition, although it cannot reveal everything concealed inside an existing building.
Who can authorize a commercial construction change?
The contract should identify the individuals who have authority to approve changes to project cost and time.
For a managed property, the authorization path may involve:
- Site representative
- Property manager
- Asset manager
- Building owner
- Condominium or corporate board
- Tenant
- Contract administrator
- Insurer when covered property damage is involved
A tenant, employee or consultant requesting a site change may not have contractual authority to approve the resulting cost. The contractor and owner should establish this distinction during project startup.
Why must every change address the schedule?
A change can affect more than the direct labour needed to complete the revised work. It may also require:
- Revised drawings
- Consultant review
- Permit revisions
- New material lead times
- Resequencing of planned activities
- Additional mobilization
- Rebooking subcontractors
- Extended site supervision
- Additional inspections
- Changes to tenant access or shutdowns
The change document should state whether the current completion plan is affected. If the effect cannot yet be determined, record that uncertainty and provide an update when the necessary information is available.
Businesses undertaking multi-trade work can use a commercial general contractor in Regina to coordinate approved revisions across the affected trades, suppliers and construction sequence.
How can property managers control change-order risk?
Improve the original project scope
Complete site reviews, coordinate drawings, identify exclusions and make important product selections before work begins.
Maintain a decision log
Record outstanding selections, required information, responsible parties and decision deadlines. A decision log should be reviewed regularly during project meetings.
Set authorization thresholds
Define who can approve changes at different dollar levels and when board, ownership or tenant approval is required.
Require written pricing
Avoid relying on verbal estimates for non-emergency work. Written pricing creates a record of what was included and how the total was developed.
Track the cumulative value
A series of individually small changes can materially affect the total budget. Maintain a numbered log showing approved, pending and rejected changes.
Review operational effects
Ask whether the change affects utility shutdowns, tenant access, customer routes, noisy work periods or the planned reopening of an area.
Close decisions promptly
Delayed direction can become a schedule issue even when construction has not yet reached the changed area. Materials, drawings or trade bookings may depend on the decision.
What should not automatically be treated as a change order?
Correction of deficient work should not automatically be presented as an owner-paid scope change. Likewise, clarification of work already included in the contract may not justify additional cost.
The correct answer depends on the contract documents, project circumstances, notices and responsibility for the condition. Disagreements should be addressed using the applicable contract’s notice and dispute procedures. Significant issues may require legal or professional contract-administration advice.
How should change orders be reported?
A monthly or milestone report should give owners and property managers a clear view of both approved changes and possible future exposure.
This record supports reporting to owners, boards, tenants, lenders and other authorized project stakeholders.
Broader general contracting and project-management services can coordinate scope, trades, construction communication and project records across multiple stages of a commercial renovation.
How should changes involving insured property damage be handled?
The contractor can document observed conditions, recommended physical work, estimates and completed repairs. The insurer determines coverage, deductibles, limits and claim approval under the applicable policy.
Optional improvements should not be labelled as covered insurance work unless the insurer confirms coverage. Separate restoration of damaged components from owner-selected upgrades so the records and costs remain clear.
For work involving loss documentation, mitigation and reconstruction, review property restoration and insurance-claim support .
Establish the change process before construction
The most effective time to decide how changes will be submitted, priced, reviewed and authorized is during project startup—not after an urgent site decision appears.
KB Better Construction coordinates commercial renovation and construction work in Regina. Owners should have their lawyer, consultant or contract administrator review contractual rights and obligations where appropriate.
Planning a renovation with several trades or decision-makers?
Establish the construction scope, authorization path, reporting format and change-control process before work begins. Our team can discuss the renovation and the project controls required for coordinated delivery.
Request a Commercial Project ConsultationFrequently asked questions
What is a construction change order?
A construction change order is written documentation of an agreed addition, deletion or revision to contracted work. It should identify the revised scope, added cost or credit, schedule effect and required authorization. The exact process is determined by the applicable construction contract.
Should additional work start before the change is signed?
The contract determines the required procedure. Except for properly authorized emergency action needed to protect people or property, obtaining written approval before additional work proceeds reduces disputes about scope, price and schedule.
Are concealed conditions always the contractor’s responsibility?
Not automatically. Responsibility depends on the contract, available information, representations, site conditions and surrounding circumstances. The condition should be documented and the contractual process followed before the affected work continues.
Can a change order reduce the contract price?
Yes. Removing work, reducing quantities or approving a lower-cost alternative may create a credit, subject to the contract’s pricing and markup rules. The credit and any schedule effect should be documented with the same care as an added cost.
How should property managers track several changes?
Use a numbered change log showing the description, reason, status, amount, cumulative value, schedule effect, decision deadline and authorization date. Pending and rejected changes should remain distinguishable from approved changes.
What is the difference between a change order and a change directive?
Terminology and procedures depend on the contract. Generally, a change order records an agreed change, while a change directive may direct a change before all adjustments are agreed. Owners and contractors should follow their actual contract rather than applying a generic definition without reviewing the governing terms.