What Is a Change Order in Tenant Construction?

A change order is a formal modification to the original scope of work. It can include:

• Additional work
• Deletion of work
• Substitutions of materials or methods
• Design changes
• Code-driven upgrades

In tenant improvement work—especially in commercial office spaces, retail locations, or healthcare buildouts—change orders can emerge frequently due to evolving tenant demands, landlord coordination, or unforeseen conditions within existing structures.

Why Change Orders Happen in Tenant Improvement Projects

Understanding the most common sources of change orders can help you plan better:

1. Client-Driven Design Changes

Tenants may request layout adjustments once they visualize the space mid-construction. This often leads to HVAC reroutes, revised electrical plans, or even new partition walls.

2. Unforeseen Site Conditions

Discovering asbestos, water damage, or outdated wiring can trigger scope changes and require immediate corrective work.

3. Coordination Conflicts

Lack of early coordination with property management or utility providers may cause shutdown conflicts or elevator access issues, forcing you to reschedule trades and shift resources.

4. Incomplete Drawings or Specs

Tenant improvement plans are often fast-tracked, and when documents aren’t fully vetted, missing scope items or ambiguous details can surface later.

Best Practices for Managing Change Orders

1. Establish Clear Communication Channels Early

From day one, make it clear to your client and subcontractors how change orders will be handled. Set expectations around:

• How changes are initiated
• What documentation is required
• Turnaround time for pricing and approvals

Don’t assume everyone is on the same page—spell it out.

2. Use Standardized Change Order Forms

Formal documentation is essential. A consistent format protects both parties and ensures the scope, cost, and schedule implications are clear.

Include:

• A detailed description of the change
• Pricing (including labor, materials, and overhead)
• Time impact (added days or shift changes)
• Signatures from all approving parties

3. Track Schedule Impacts Closely

Even minor changes can compound and affect completion milestones. Update your project schedule in real time and flag any new critical path items caused by a change.

In fast-paced TIs, you may not have float to absorb a week-long delay caused by a framing change or MEP rework.

4. Involve Subcontractors in Scope Reviews

Before issuing a change order, review it with the affected trades. Scope gaps or miscommunications with subs can lead to mispriced work or additional change orders downstream.

Make sure subcontractors understand the full scope of the change and confirm labor/material availability before issuing the order.

5. Create a Paper Trail for Approvals

Never proceed with change work based on a verbal agreement. Always get written approval—preferably with signature—before starting. Verbal changes are one of the top causes of disputes in TI projects.

Handling Change Orders in Occupied Spaces

Change orders in occupied buildings come with even more complexity:

• Night/weekend work may be required
• Noise, dust, and shutdowns must be minimized
• Coordination with property management is critical

Make sure change orders that affect hours, access, or life safety systems (fire alarms, sprinklers, elevators) are coordinated with building engineers and approved in writing before proceeding.

Don’t Let Change Orders Derail the Budget

Even one large change order can blow up your margin on a tenant improvement project. It’s crucial to:

• Update the project budget every time a change is approved
• Review changes weekly with stakeholders
• Flag pending or disputed change orders early, before they create friction with the client or GC

Use a running change order log to track status (pending, approved, denied) and financial impact.

How Downstream Helps You Stay Ahead of Scope Changes

When a change order calls for new equipment, additional jobsite services, or faster turnaround, you need to pivot fast. That’s where Downstream comes in.

Downstream connects you with a nationwide network of rental suppliers, so you can:

• Source last-minute equipment like scissor lifts, material lifts, or dumpsters
• Find multiple suppliers near the jobsite to compare pricing
• Keep your crews productive without waiting days for equipment arrivals

No matter the scope change, Downstream helps you stay agile and responsive across all your active jobs.

Need a last-minute 12 ft. material lift because the ceiling layout changed? Downstream has you covered. Swapping out for a heavier skid steer to move demo debris after an added scope item? It’s one search away.

Final Thoughts

Change orders are an inevitable part of tenant improvement construction—but with the right systems in place, they don’t have to derail your job. The keys are:

• Communicating clearly with all stakeholders
• Documenting every change thoroughly
• Updating the budget and schedule in real time
• Being ready to adapt when new resources or equipment are needed

By staying proactive and organized, you’ll keep your projects moving—even when the scope shifts midstream.

And when that next change hits? Downstream is your on-demand partner for the equipment and jobsite services that keep you on schedule.

Looking for better ways to manage last-minute changes on your jobsites?

Visit Downstream to start sourcing smarter.

Additional Resources:

• Meeting OSHA Standards in Occupied Spaces During Tenant Construction‍
• Office Refurbishment Costs: What to Budget and Why

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