Change Orders and T&M work make up a significant share of Specialty Contractor revenue — often 10–30% of annual income — and they’re becoming more frequent every year. According to Clearstory’s new 2025 Specialty Contractor State of Change Orders and T&M Work Report, 71% of contractors said they’re seeing more design changes on projects than just five years ago, and nearly half reported a notable increase in overall Change Order volume. The drivers are familiar: shifting scopes, design clarifications, unforeseen site conditions, and compressed schedules that force extra work into the field before paperwork catches up.
Yet the way this critical revenue is managed hasn’t kept pace with the realities of today’s projects. We surveyed more than 100 trade partners across the U.S. to uncover what’s really working, what’s broken, and where money is slipping through the cracks. The findings reveal an industry still relying on outdated workflows that create friction with GCs, slow cash flow, and put real dollars at risk.
Five Signals That Stand Out
The data paints a clear picture: while project changes are becoming more frequent and complex, most Specialty Contractors are still managing them with legacy tools, manual workarounds, and disconnected platforms. The result is a growing gap between the pace of the work and the systems used to track it.
From paper-based T&M tickets and endless revision cycles to delayed cash flow and strained GC relationships, these five signals highlight where the friction is greatest and where forward-thinking contractors are beginning to pull ahead.
1) Paper Still Dominates
An overwhelming 97% of Specialty Contractors still rely on paper-based T&M tickets even though nearly every field team now carries a smartphone. On the surface, paper feels simple: jot down the labor, materials, and hours, have the GC sign, and turn it in. In practice, it is one of the weakest links in the revenue chain. Tickets get misplaced between the field and office, details are incomplete or hard to read, and backup documentation often never makes it into the final package. The result is slow billing, more disputes, and lost revenue opportunities.
Why it matters: Each lost or rejected tag represents real work that may never be billed. When paper processes fail, contractors lose both time and money, along with the visibility needed to stay in control of their projects.
2) Revisions Are the Norm
Change Order Requests rarely move cleanly from submission to approval. Seventy percent of contractors say most CORs go through two to three rounds of revision before they are finalized. Every cycle adds new comments, updated pricing, and additional documentation requests that pile up across email threads and spreadsheets. For project teams, that means hours spent reworking the same information instead of managing the job. For GCs, it means longer review timelines and delayed commitments.
Why it matters: The constant churn of revisions slows approvals and weakens GC relationships. It also creates confusion about scope and ties up internal resources that could be focused on more productive work. Over time, these inefficiencies extend billing cycles and increase stress for everyone involved.
3) Cash Is on the Line
Revenue risk doesn’t just come from missing tickets, it comes from how long it takes to turn field directed extra work into billable revenue. More than half of contractors said it takes 8 to 14 days to convert a signed T&M tag into a priced Change Order Request, and another 30% reported it takes 15 to 30 days. Every extra week stretches cash flow and forces contractors to finance labor and material costs out of pocket. On top of that, 60% of firms reported writing down or writing off Change Order revenue at least occasionally, most often due to missing backup, communication gaps, or pricing disputes.
Why it matters: Each delay and write-down chips away at margin. Even a modest percentage of revenue slipping through the cracks adds up to millions lost annually, putting contractors in a perpetual race to recover money they’ve already earned.
4) Time Drains Are Massive
Teams spend an average of 6–10 hours each week pricing, printing, and submitting CORs, plus another 1–10 hours chasing GC follow-ups. That’s valuable time burned on admin instead of building.
But the issue runs deeper than lost hours. According to the report, most of that effort happens outside core project systems in spreadsheets, PDFs, and emails. Every manual update or missing attachment means another email thread, another delay, and more confusion between field teams, office staff, and GCs.
Why it matters: The result is a compounding cycle of busywork that slows projects and wears down teams. Nearly 40% of respondents said COR and T&M workflows are a frequent source of stress, and 28% said they’ve lost employees who cited administrative headaches related to CORs as a reason for leaving.
5) GC Relationships are at Risk
Change Orders don’t just affect cash flow. They also impact trust between contractors and their GCs. Nearly two-thirds (63%) of Specialty Contractors said that Change Order negotiations have strained relationships with their General Contractors, and one in four reported losing business opportunities as a result. The main culprits are slow approvals, unclear documentation, and pricing disputes that could have been avoided with better alignment.
Why it matters: Change Order friction erodes confidence on both sides. When communication breaks down, Specialty Contractors risk losing not just revenue, but long-term partnerships that drive repeat work and future growth.
From Insight to Action
The good news: leading contractors are already changing how they work. Our research shows three shifts making the biggest difference:
- Real-time, digital T&M capture with photos and e-signatures to prevent lost tickets and disputes.
- Standardized, complete submission packages to accelerate approvals and cut revision churn.
- Shared, live COR logs with GCs to align on status and eliminate surprises.
Contractors embracing these changes are protecting their margins, getting paid faster, and strengthening GC relationships.
Get the Full Report
The data is clear: Leading Specialty Contractors are already managing high-value work with outdated processes—and it’s costing them. Want the benchmarks and the playbooks? Download the 2025 Specialty Contractor State of Change Orders Report and see how top contractors are fixing change order chaos and getting paid faster.
