Change Orders: Standard Operating Procedure Words: Donnie WilliamsPhotos: DRP MasonryIn masonry construction, change orders are not occasional events; they are guaranteed. Drawings do not always match field conditions, specifications can conflict, and real-world construction has a way of exposing gaps in design.At DRP Masonry, we operate under a Standard Operating Procedure for handling change orders. While we may not execute every step to the letter on every job, this process serves as our guideline to protect profits, maintain some level of professionalism, and ensure we get paid for the work we are doing.There are times when we have done the work on an email confirmation, and every now and then, we have even moved forward on a handshake. But experience has taught us that those situations can come back and bite you in the rear end. History with a client and a trusting relationship causes us to be relaxed on our usual SOP in a few instances. We have done CO for free when making this decision, and what follows is the disciplined process we rely on to manage change orders the right way.Step 1: Identifying the DiscrepancyEvery change order starts when something does not match what was originally bid. This can be discovered by a foreman in the field, a superintendent during coordination, or a project manager reviewing drawings. Honestly, this is probably one of the biggest missed opportunities of our company. That’s why we have weekly meetings and keep two to three management people overseeing larger jobs to ensure we catch these opportunities.Typical discrepancies include differences between architectural and structural drawings, missing reinforcement, changes in wall height, or field conditions that require additional work. At DRP, our rule is simple: if it is different than what we bid, it is a change order. Sometimes we end up losing the argument, but we have to try each time.In January, on a military project, our foreman found that wall elevations did not match structural shop drawings. That moment, when the discrepancy is recognized, is where a mason contractor either protects his margin or gives away work.Step 2: Submitting the RFIOnce the issue was identified, the next step was to formally request direction through a Request for Information (RFI). We do not guess, assume, or make field decisions without written clarification. My go-to statement is “I’m a bricklayer, not an architect or engineer. That’s what they get paid the big bucks for, to tell us what they want in this area.”The RFI clearly outlines the issue, references the conflicting drawings, and asks the architect or engineer to provide direction. Their response defines the scope of the change. We usually like to make a suggestion that is more advantageous or profitable for us, but it’s just that, a suggestion.Ultimately, this step creates documentation and establishes accountability. At DRP, we believe the RFI defines the work, not our opinion.Step 3: Pricing the ChangeThis is where discipline matters most. A change order is not just additional material; it is additional impact.We break down every component:Labor: Additional installation time, reduced productivity, reinforcement placement, and grouting.Materials: Block, mortar, grout, steel, and any added components.Equipment: Scaffold adjustments, lifts, forklifts, and pumps.Overhead: Supervision, project management, and administrative costs.Profit: Added work carries added risk and must be priced accordingly.On the same project, a wall height increase required additional scaffolding, more reinforcement, and slower production. What looked minor on paper turned into a significant cost increase.Step 4: Obtaining ApprovalOnce the pricing is complete, the change order proposal is submitted to the general contractor. This is where negotiation occurs.The contractor must stand on documented facts, clear quantities, and defensible numbers. Pushback is expected, but proper documentation puts you in control.Our standard procedure is to obtain written approval before proceeding. While we have occasionally moved forward based on email confirmation or even a handshake, those situations carry risk and should be avoided whenever possible.Our rule remains: no signature, no free work (90% of the time).Step 5: Performing the WorkAfter approval, the work is executed. During this phase, it is critical to track labor, materials, and production separately from the base contract.Daily reporting systems such as Fieldwire are used to document manpower, progress, and conditions. This ensures that if questions arise later, the contractor has the data to support the work performed.If you do not track it, you cannot defend it. And most of the time, you will have to defend it, especially if the GC is having to pay for it.Step 6: Billing the Change OrderThe final step is converting the approved change order into a payment. At DRP Masonry, change orders are billed as separate line items on the AIA monthly progress billing.This ensures transparency and prevents the added work from being buried within the base contract. Each change order is tracked, followed up on, and carried through the billing cycle until payment is received.A change order is not complete when the work is done; it is complete when the money is collected. You never know when the owner or contractor is going to dispute it. We want to keep these relationships for the next job, so a level of politics and public relations is required. Standing firm on one CO may cost you a million-dollar job in the future. Having a good negotiator is key in these situations.Final ThoughtsChange orders are not conflicts; they are clarifications. They define the difference between what was planned and what is required in the field.Contractors who fail to manage change orders properly lose money, create tension with general contractors, and weaken their operations. Those who follow a disciplined process protect their margins and build credibility. All learned from losing money by us at DRP!At DRP Masonry, this process is our standard. It may not always be executed perfectly, but it is the system we rely on to ensure that additional work is properly identified, priced, approved, performed, and paid.In this business, you do not make money chasing change orders at the end of a job. You make money by managing them correctly every step of the way.About: Resources
