Handling Construction Change Order Disputes And Why You Need A Lawyer
Change orders are one of the most common sources of conflict in construction projects. Whether it is a request for extra work, unexpected site conditions, or changes in materials, disputes often arise when the scope of work shifts—along with the cost.
The legal trouble usually starts when it is unclear who approved the change, how it affects the budget or timeline, or whether the work was even authorized in the first place.
What Is a Change Order And Why Do They Cause Disputes?
A change order is a formal amendment to a construction contract that alters the original scope of work. Disputes arise when there is disagreement—usually between the builder and the contractor— about whether the change was authorized, how it affects the budget or timeline, or whether the contractor is entitled to additional compensation.
These disputes are often rooted in poor documentation or unclear contract terms. Without a clear paper trail or agreed-upon process, it is easy for misunderstandings to turn into legal battles.
Why Change Order Disputes Happen
Even with the best intentions, change order disputes can happen when:
The original contract lacks detail about what is included or excluded
Changes are agreed to verbally instead of in writing
Pricing for extra work is unclear or contested
New or unexpected site conditions force last-minute adjustments
Communication breaks down between parties
These issues often lead to finger-pointing, delays, and in some cases, legal action.
Preventing Change Order Disputes Starts With The Initial Contract
The best way to avoid a change order dispute is by starting with a well-drafted contract right out of the gate. It should clearly define the scope of work, list what qualifies as a change, and outline how those changes should be approved and documented. Change order provisions should explain who has the authority to approve changes, how costs are calculated, and whether written approval is required before any work proceeds.
And while formal change order forms are ideal, in fast-moving construction environments, they are not always practical. When a change is discussed on-site or over the phone, it is important to follow up with an email or text confirming the agreement. In many cases, courts have accepted this kind of informal documentation when written approval was technically required.
Have a Plan For Dispute Resolution
Even with safeguards in place, disputes can still happen. That is why your construction contract should include a clear process for resolving disagreements.
Alternative dispute resolution (ADR) methods like mediation or arbitration are often faster and more cost-effective than going to court. These processes allow the parties to work through the conflict with the help of a neutral third party, often leading to a fair and timely resolution without the need for lengthy litigation.
Including a dispute resolution clause in your contract can help keep the project moving and protect both sides from unnecessary legal costs.
Working With a Construction Lawyer Is Key
Working with a construction lawyer from the beginning of a project can help avoid costly mistakes and increase the chances of a smooth resolution if there is a change order dispute. Legal professionals experienced in construction law can:
Review your contract and documentation
Advise you on your rights and obligations
Represent your interests in mediation, arbitration, or court
If a change order dispute escalates or becomes too complex to resolve on your own, a construction lawyer can make all the difference if mediation or litigation becomes necessary.
Need a Contract Review Or Change Order Dispute Resolution For Your Construction Project? Gionet Fairley Wood LLP Can Help
At Gionet Fairley Wood LLP, we have spent more than 20 years helping clients across Barrie, Simcoe County, Muskoka and beyond, handle construction disputes, change order issues, and contract matters. Whether you are drafting a new contract or managing a disagreement mid-project, we are here to help protect your interests and keep your project on track. Call us at 705-468-1088 or book a consultation on our website.
***The information provided in this blog is for general informational purposes only and should not be construed as legal advice. If you have legal questions, we strongly advise you to contact us.