Change orders are inevitable on complex projects, but how they're managed can make the difference between a successful project and a budget disaster. The key is establishing clear processes and applying them consistently.

Every change order request should be evaluated on two dimensions: entitlement and quantum. Entitlement asks whether the contractor has a legitimate right to additional compensation or time. Quantum asks whether the amount requested is reasonable.

For entitlement, review the contract documents carefully. Is this truly a change from the original scope, or is the contractor attempting to recover costs for work already included? Many disputes arise from ambiguous specifications that contractors interpret differently than owners intended.

When evaluating quantum, don't simply accept contractor pricing. Request detailed breakdowns, compare unit costs to bid values and industry standards, and verify that labor and equipment rates align with contractual provisions. Markup percentages should match contract terms.

Document everything. Even if you ultimately approve a change, maintain a record of your evaluation process. This documentation protects the owner if disputes arise later and demonstrates that due diligence was performed.