Change orders are where commercial projects lose the most money. Not in the original bid, not in the contract — in the changes that accumulate after construction begins.
A well-run commercial project should have change orders. Construction is complex. Design changes, unforeseen conditions, and owner-directed modifications are normal. The question is not whether change orders will happen — it is whether you are evaluating them correctly before you pay them.
What most owners get wrong
Most commercial owners receive a change order, review the dollar amount, and approve it. They are trusting that the scope is accurate, the pricing is fair, and the change is legitimate. On projects without independent cost oversight, all three of those assumptions are often wrong.
Scope creep in change orders is common. A contractor submits a change order for work that was already included in the original contract. Without someone who knows the contract in detail, the owner pays twice.
How independent cost management protects you
Every change order should be reviewed against three things: the original contract scope, current field conditions, and the project schedule. Independent cost management means doing that review before approving payment — not after.
I review every change order on projects I manage against the original contract documents, verify the scope against what is actually happening in the field, and evaluate the pricing against current market rates. Owners consistently recover significant value through this process.
Pay application review
Change orders and pay applications are connected. A change order that gets approved inflates the pay application. Independent review of both — together, against field conditions — is the only way to ensure you are paying for work that has actually been completed to the standard required.