Change Management (Owner & Subcontractor Changes) for General Contracting

Read the prime contract sections on changes, including how change orders, construction change directives (CCDs), and time extensions are handled. Review your company’s internal change management policy so you understand required forms, approvals, and thresholds. Note any differences between contract language and internal practice that you must reconcile.

Draft a one-page summary that explains in plain language how potential changes will be identified, how pricing will be obtained, when work can start, and how approvals are documented. Include approximate turnaround times for pricing, who initiates change documents, and how schedule impacts will be communicated.

Meet with the project manager, superintendent, project engineer, and project accountant to walk through the change process summary. Clarify who logs changes, who leads pricing, who negotiates with the owner, and who handles subcontractor change orders. Make sure everyone understands that field-directed extra work must be documented before proceeding except in true emergencies.

During early OAC or kickoff meetings, review the change process with the owner’s representative and design team. Clarify how they should request changes, what information you need, and how quickly you can typically provide pricing. Emphasize that written approvals are required before work proceeds whenever feasible.

Share the change management expectations with subcontractors during their kickoff or coordination meetings. Explain how they must submit pricing, the level of backup required, and that they should not perform extra work without written direction. Provide them with any standard forms or templates your company uses for change pricing.

Based on the contract and project scope, list the types of events that should be logged: owner design changes, scope additions, drawing/spec changes, unforeseen conditions, code-driven changes, and subcontractor requests for extra compensation. Share this definition with the project team so they know what to flag.

Create a log (in your PM system or spreadsheet) with fields for change ID, date identified, origin (owner, A/E, site, sub), description, affected areas, estimated magnitude, status, and responsible PM/PE. Store it where the whole project team can view and update it.

Instruct superintendents, project engineers, and field staff to bring any potential change to the PM or designated change coordinator as soon as they see it. Emphasize that early logging does not mean the change is approved; it just means it will be evaluated and tracked.

When a potential change is reported, create a new entry in the register with a clear description and initial categorization. Link the entry to any related RFIs, bulletins, sketches, or emails. Mark the status as “Identified – Under Review.”

At least weekly, review the change log with the project manager and key staff. Update statuses, add estimates if known, and identify items that require quick action. Use the log as the single source of truth for change exposure and communication with leadership.

For each logged item, compare the requested or required work to the contract documents, including drawings, specs, and approved RFIs or bulletins. Determine whether the work is clearly included, clearly excluded, or ambiguous. Note any relevant contract clauses related to changes and notice requirements.

Classify the item as owner-directed change, design-driven revision, unforeseen condition, subcontractor claim, or in-scope clarification. Decide whether the GC appears to have entitlement to additional time or money based on your initial review. If entitlement is questionable, mark the item for further analysis or potential dispute.

Estimate whether the change is small, medium, or large in cost and whether it likely has schedule impact. Use rough order-of-magnitude thinking (for example, “likely under $5k,” “order of tens of thousands,” “could impact critical path”). This helps prioritize which changes to process first.

Enter the classification, entitlement assessment, and preliminary impact into the change register. Set a priority level (e.g., high, medium, low) based on risk to cost and schedule. Assign a responsible person to move the item through clarification and pricing.

For changes with potentially large cost or schedule impact, notify the project manager and project executive. Provide a brief summary of the issue, entitlement view, and next steps. This keeps leadership informed and allows them to support strategy and client communication.

Examine the sketch, bulletin, RFI response, owner email, or field condition that triggered the change. Visit the site to see what is already built and how the change affects existing work. Note any conflicts or coordination issues with adjacent trades or systems.

Talk with the owner’s rep, architect/engineer, superintendent, or subcontractor who raised the change. Ask targeted questions to confirm intent, preferences, and any constraints (budget, aesthetics, operations). Make sure you understand whether this is mandatory (code, design) or discretionary (owner preference).

Draft a concise scope description in bullet form, stating what is to be added, removed, or modified and in which areas. Note assumptions about finishes, products, or methods if not fully defined in documents. Distinguish between base scope, add scope, and any credits.

From the written scope, list which trades and materials are impacted and which schedule activities or phases will be touched. Note whether rework of completed work is required. This list will be used to request pricing and assess schedule impact.

Attach marked-up drawings, photos, and your written scope to the change register entry. Change its status to “Scope Clarified – Ready for Pricing.” Share this package with the internal team and field leaders so everyone is working from the same understanding.

Using the clarified scope, list each affected trade and what portion of the work they will perform. Identify which parts involve labor only, material and labor, rework, or general conditions. Include internal items like supervision, temporary protection, and equipment if they are affected.

Send a clear pricing request package to each affected subcontractor, including the written scope, marked-up drawings, and any relevant RFIs or bulletins. Specify what you need: detailed breakdown of labor, material, equipment, sub-tiers, and any proposed schedule impact. Provide a due date that aligns with your commitment to the owner.

For work performed by your own crews or general conditions impacted by the change (extended supervision, additional temporary utilities, extended rentals), prepare internal estimates. Use established rates and productivity factors. Include allowances for overhead items affected by extended project duration if applicable.

When quotes arrive, check that they match the requested scope and that exclusions are reasonable. Compare pricing against your own expectations and past benchmarks. Clarify or negotiate where quotes seem high, incomplete, or misaligned with the scope.

Compile subcontractor quotes, internal estimates, and anticipated schedule impact into a single summary. Show base costs, markups, and any time extension request. Update the change log with preliminary cost and schedule numbers and mark the item as “Priced – Ready for Proposal.”

Open your company’s or contract-required change proposal form (PCO, COR, CCD response). Fill in project information, change ID, and reference documents (RFI numbers, bulletins, sketches). Ensure all required header fields are complete and accurate.

Convert the internal scope notes into a client-facing description that is specific but understandable. List what is included and highlight any notable exclusions or assumptions. Refer to drawing and spec references where needed but do not force the owner to decode technical shorthand.

Enter costs by major category (labor, material, equipment, subcontractor, general conditions) using the internal summary. Apply markups according to contract terms (overhead, profit, bond, taxes). Double-check that the totals match your internal calculations and that math is correct.

State whether the change will increase, decrease, or not affect contract time. If there is a time extension request, specify the number of days and how it affects milestones. Note any operational or coordination impacts (e.g., after-hours work, tenant impacts) that the owner should be aware of.

Have the project manager and, where required, a senior manager or executive review the proposal for clarity, accuracy, and strategy. Once approved internally, submit the proposal to the owner’s authorized representative via the agreed channel. Update the change log to “Proposal Submitted” with the submission date.

For each change, compare individual subcontractor quotes to the total amount you are proposing to the owner. Make sure sub costs plus internal costs and markup fit within the owner proposal value. If owner pricing pressure led to reductions, decide how those reductions will be shared with subs.

Review each sub’s proposed scope and cost breakdown against the clarified scope and sub’s base contract. Confirm they are not including base-scope work and that exclusions are acceptable. Challenge excessive unit rates, labor hours, or unjustified overhead where appropriate.

Discuss proposed changes with each sub, focusing on specific line items rather than arguing about the total. Seek adjustments to align with reasonable benchmarks and owner-accepted amounts. When you reach agreement, document the final scope and price in writing (email or meeting notes).

Using your subcontract change order template, prepare SCOs that reference the original subcontract, change description, and revised contract value and time, if applicable. Attach backup if required by company policy. Route SCOs for internal approval and then send to subs for signature.

Update the change log and a separate SCO log to show which subcontractor changes are executed, pending, or under negotiation. Ensure every owner-approved change has matching subcontract coverage and that unapproved owner changes with sub exposure are clearly flagged.

When the owner approves a change, verify that you have written authorization (signed change order, CCD, or email per contract) and that the approved amount and time change are clear. Cross-check against your internal change log and proposals.

Update the project’s contract value in the accounting/ERP system by adding or subtracting the approved change amount. Record the change in the owner change order log with CO number, description, amount, and approval date. Verify that totals reconcile to official owner documents.

Enter budget adjustments for each affected cost code based on the change breakdown. Increase or decrease budgets accordingly, including any contingency usage or credits. Ensure that new cost codes are created where needed to track distinct change work.

Reflect approved subcontract change orders in the commitments module of your ERP or PM system. Confirm that each SCO’s value and revised subcontract total match the signed documents. Link SCOs to the corresponding owner change for traceability.

Share updated budget and commitment reports with the project manager, superintendent, and project accountant. Highlight major changes to margin, contingency, or cost risk. Use this information to inform future decisions and reporting to leadership.

Revisit the schedule impact you proposed to the owner and what was ultimately approved. Confirm whether a formal time extension was granted. Discuss any differences with the project manager and superintendent so you all share the same understanding.

In the scheduling tool, add or adjust activities to capture the change work. Update durations, relationships, and milestones as needed. Ensure that the change activities are correctly placed in the sequence and that any new critical path impact is visible.

Meet with the superintendent and affected subs to plan when and how the change work will be executed. Decide whether it will be integrated into ongoing work or handled in separate phases or shifts. Note any access, safety, or coordination constraints the change introduces.

If the change affects key milestones or turnover dates beyond what was previously agreed, inform the owner and design team through the normal communication channels. Explain how the change work will be integrated and what steps you are taking to minimize impact.

Monitor execution of the change work in the field, updating percent complete and dates in the schedule. If further delays or accelerations occur, adjust the schedule and, if needed, discuss additional impacts with the owner. Keep the change visible in schedule review meetings.

Regularly update the change register with current status, approved amounts, pending proposals, and rough estimates for potential changes. Include columns for owner amount, subcontractor amount, internal costs, and projected margin per change.

On a recurring basis (e.g., monthly or at billing cycles), review the full list of changes with the project manager and project executive. Highlight unapproved work in place, significant exposure, and changes with little or negative margin. Decide on actions such as pushing for approvals or negotiating better recovery.

Ensure that approved owner changes are reflected in pay applications and that subcontractor and internal costs are coded to the correct change-related cost codes. Reconcile the change log to job cost reports so you can see realized margin versus planned.

Identify changes that are stuck in negotiation, disputed, or significantly overdue for approval or payment. Develop a strategy for each (e.g., escalate to owner leadership, compromise on scope, seek mediation). Document these strategies in the log so the team acts consistently.

As the project nears completion, work through the change log to close out remaining items, ensuring all work is billed and paid or written off with explanation. Summarize overall change performance—volume, margin, patterns—and feed this into the post-project review to improve future change management.