Changes are common on Canadian construction projects. An owner may revise the design, site conditions may differ from the plans, or a contractor may identify work that was not included in the original scope. When those changes are handled informally, disagreements about price, schedule, and responsibility can develop quickly.
A clear change-order process helps the parties maintain an accurate record of what changed and how the change affects the project. The contract remains the starting point: it may set out the required notice, approval, pricing, and documentation procedures.
What is a construction change order?
A change order is a written amendment or direction that alters the work described in the original construction contract. Depending on the contract, it may change the scope, price, schedule, materials, specifications, or method of performance.
Some contracts distinguish between an approved change order, a change directive, and work performed under protest or pending agreement. The terminology and legal effect depend on the wording of the contract and the circumstances of the project.
Common causes of changes
- Design revisions or updated drawings and specifications
- Owner-requested additions, deletions, or substitutions
- Unforeseen site or existing-condition issues
- Coordination changes involving consultants, trades, or suppliers
- Changes required to address safety, code, or permitting concerns
- Delays or access restrictions that affect the planned sequence of work
Review the contract before work changes
Before proceeding, review the provisions dealing with changes, notices, payment applications, delay, dispute resolution, and records. Pay particular attention to requirements such as:
- Who has authority to direct a change
- Whether a direction must be in writing
- How quickly notice must be given
- How labour, materials, equipment, overhead, and profit are priced
- How schedule extensions or delay costs are assessed
- What happens if the parties cannot agree on the price before the work begins
Failing to follow a contractual notice or approval process can make a claim more difficult, even where additional work was performed. A party that believes immediate action is required should document the direction and its reservation of rights as soon as possible.
Document the change clearly
A useful change-order record should identify the original requirement and the proposed revision. It should be specific enough that someone who was not involved in the conversation can understand the work and its effect on the project.
Depending on the circumstances, the record may include:
- A description of the changed work and the reason for it
- References to revised drawings, specifications, site instructions, or meeting minutes
- The agreed or estimated cost, including applicable taxes where relevant
- The effect on milestones, completion dates, and project sequencing
- Required materials, labour, equipment, and subcontractor involvement
- Any assumptions, exclusions, allowances, or unresolved items
- The names and dates associated with the direction and approval
Separate entitlement from valuation
Two different questions often arise in a change dispute: whether the contractor is entitled to additional compensation or time, and how much compensation or time is appropriate. Keeping those issues separate can make negotiations and project records more precise.
For example, a party may agree that work was outside the original scope while still disputing the labour rates, markup, quantities, productivity effects, or schedule impact. Supporting information such as timesheets, delivery records, invoices, photographs, daily reports, and updated schedules can help address those issues.
Be careful with disputed or directed work
Projects sometimes require work to proceed before the parties agree on price or schedule. In that situation, the contractor should identify the direction, explain the expected impact, and state whether the work is being performed while reserving a claim. The owner or consultant should likewise clarify the authority for the direction and avoid creating ambiguity about whether the work is approved, disputed, or merely being investigated.
Neither side should assume that a verbal conversation, unsigned estimate, or unmarked drawing resolves every contractual issue. Confirming the position in a timely written record can reduce later disputes about what was requested and accepted.
Provincial law and the project contract matter
Construction law in Canada is affected by provincial and territorial legislation, the contract terms, the project delivery model, and the parties involved. Public and private projects may also have different statutory and contractual requirements. A change-order dispute can overlap with issues involving payment rights, delay, defective work, procurement rules, or other remedies.
For that reason, a general checklist cannot replace a review of the specific contract and project record. Owners, contractors, and consultants should obtain legal advice when a change is substantial, work is being directed without agreement, deadlines are approaching, or the parties are considering suspension, termination, or formal dispute resolution.
Practical checklist
- Identify the proposed change and its connection to the original scope.
- Check the contract’s notice, authorization, pricing, and schedule provisions.
- Record the direction and circulate the relevant drawings or instructions.
- Price the work using the method required by the contract.
- State assumptions, exclusions, schedule effects, and unresolved issues.
- Track labour, materials, equipment, progress, and communications.
- Confirm approval, disagreement, or reservation of rights in writing.
- Escalate significant or disputed changes before they affect the wider project.
A disciplined change-order process will not prevent every construction dispute, but it can make the parties’ positions clearer and preserve evidence while the project is still active. Early advice is often most useful before a documentation gap becomes a larger claim.
