Only 1 in 3 Contractors Say Their Change Order Process Works: New Research Shows What the Best Ones Do Differently
Study reveals that those employing more structured risk management practices, standardized processes and digital capabilities are achieving better outcomes.
June 23, 2026 — New research from Dodge Construction Network and Clearstory, published in the Optimizing the Change Order Processes SmartMarket Insight series, reveals that most commercial construction contractors are experiencing an increased number of change orders, amplifying the financial, operational and workforce challenges they create for both general and specialty trade contractors. The findings have been released in two separate Insight reports to reflect the differing impacts felt by each company type.
Both groups report significant inefficiencies due to disconnected tools, inconsistent processes and limited visibility into critical change order processes. The research clearly demonstrates that contractors using more structured change order management practices achieve measurably better outcomes. Yet only about one-third of both general and specialty trade contractors report that their current change order management process functions very well.
Negative Impacts Experienced
General Contractors: GCs experience significant challenges in forecasting and controlling project costs, along with elevated financial and operational risks.
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Almost all GCs (96%) report that a lack of change order visibility affects their ability to control project costs. Specifically, 78% cite unanticipated costs and 60% cite late costs as major factors.
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Around half of GCs identify unsolicited change order requests as a major contributor to fee erosion, disputes and claims.
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91% of GCs report sometimes not paying full change order amounts, most often because of disputed pricing, incomplete documentation, and scope disagreements rooted in poor GC-trade partner alignment.
Specialty Trade Contractors: Trade contractors struggle to get paid in full and on time.
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96% of trade contractors experience poor or untimely change order processing, with the full cycle from work performed to authorized change order averaging nearly 7 weeks.
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83% say the change order process negatively impact their cash flow.
- Given the schedule pressure common in today’s construction environment, 97% of trades report that they begin work on some change orders before they are approved, increasing their risk of potential reduced payments.
- 77% report that they are forced to write off unapproved or downward negotiated change orders as bad debt, significantly impacting their company’s financial performance.
Workforce Well-Being:
The majority of GCs and nearly all trade contractors report that current change order management practices increase employee stress, reduce job satisfaction and contribute to strained relationships between project stakeholders.
"I've been on both sides of this table. As a project manager at a top ENR general contractor, I know how change orders look from the GC seat and how often the process fails the people doing the actual work,” says Cameron Page, founder and CEO of Clearstory. “Specialty contractors perform the work, document it, submit it, and then wait weeks for approvals that should take days. Revenue sits in limbo. Cash flow tightens. Relationships fray. This research shows how widespread that problem is and exactly where the friction lives. For decades, construction teams have accepted incomplete change order visibility as the norm. That's changing, and the data shows it doesn't have to be this way."
Optimizing the Change Order Management Process
The research identifies a strong relationship between optimized, systematic change order management and performance. Contractors who consistently track key metrics, standardize workflows and employ more integrated digital processes report substantially better outcomes than their peers. However, while this greater level of process sophistication positively affects both project and company performance, few companies are meaningfully engaged in more modernized, digital practices.
To better understand this, the reports provide a framework to determine change order process optimization relative to the industry:
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Only 22% of GCs and 18% of trades are using enough advanced measurements, capabilities and processes to be rank in the top tier of this analysis.
- Top-tier GCs and trades are twice as likely to say their change order management process functions very well.
- Top-tier GCs manage unsolicited change orders much more effectively, resulting in less fee erosion, and fewer disputes and claims.
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Top-tier trade contractors are more than twice as likely to actively track change order KPIs (55% vs. 26%), which supports better visibility and improved cash flow.
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Even top-tier firms have room to improve: Top GCs are deploying roughly two thirds of the identified best practices, and top trades about 60%.
“One of the clearest findings in this research is that contractors who employ more standardized processes, better risk management practices and greater digital integration are far more likely to report that their change order management process functions effectively”, says Steve Jones, Senior Director of Industry Insights Research at Dodge Construction Network. “While no company has yet fully optimized its change order management process, the findings demonstrate that greater maturity correlates strongly to reduced financial risk, improved visibility and better project outcomes."
About the Study
The Optimizing the Change Order Process SmartMarket Insight series is based on a nationwide survey of general and specialty trade contractors in the US. For more information or to download the full report, visit https://www.clearstory.build/industry-reports.
About Dodge Construction Network
Dodge Construction Network harnesses data, analytics, and industry connections to be the leading source of insights and opportunities in the commercial construction industry. With five trusted solutions – DCC, The Blue Book, Sweets, IMS, and Principia - Dodge connects construction professionals across all stages of the building process. Designed for both small teams and large enterprises, these tools simplify complexity, empowering you to build thriving businesses and communities. With over a century of experience, Dodge Construction Network is the catalyst for modern construction. To learn more, visit construction.com.
About Clearstory
Clearstory is the construction industry’s only Change Order Communication and workflow software purpose-built to close the change order gap between GCs, subs, and owners. Our cloud-based platform brings all project stakeholders onto the same page with a shared Change Order Log, digital T&M workflows, and real-time visibility into extra work. The result? Faster approvals, better forecasting, and fewer late surprises. We’re backed by Cloud Apps Capital Partners, Building Ventures, Prudence and Jackson Square Ventures. Learn more at www.clearstory.build.
