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Sep 30, 2025

How AI Can Help Construction Managers: Change Order Spotlight

Authored by: BridgeDoc's Marketing Team

You’re a construction manager, not a cost estimator. But when a contractor hands you a change order proposal with three pages of costs and minimal backup documentation, you’re suddenly expected to determine if $47,000 for “unforeseen utility conflicts” is reasonable.

For many construction managers—especially those newer to the field—this scenario is both intimidating and all too common. You know the agency is counting on you to protect public funds, but where do you start when it comes to:

  ❓Evaluating contractor pricing?

  ❓How do you know if equipment rental rate is fair or not?

  ❓And, what backup documentation should you actually be demanding?

The truth is, many change orders get approved not because they’re thoroughly justified, but because the CM doesn’t know what questions to ask or what red flags to look for. Contractors know this, and experienced ones often provide just enough information to sound legitimate without giving you the details needed to properly evaluate their request.

Continue reading to learn how AI can level the change order playing field, helping you ask the right questions and demand the right documentation—even if you’ve never estimated a day of construction in your life. And, you can download our FREE Change Order Evaluation AI Guide for Construction Managers to help you get started. 


The Real Challenge: Insufficient Documentation and Inexperienced Review

The biggest problem CMs face isn’t an overwhelming amount of contractor paperwork coming in— No. It’s quite the opposite. The challenge lies in whether or not you understand how to estimate costs when contractor details are vague and cost estimation is not your expertise anyway. Keep in mind, it doesn’t make things any easier whey common change order entries include: 

  • A brief scope description that’s intentionally vague
  • Lump sum pricing with minimal breakdown
  • Generic “backup” that doesn’t actually support the costs
  • Time extension claims with no critical path analysis
  • Boilerplate language about “unforeseen conditions” or “plan errors”

💡Remember, you can be great at managing field operations, understanding specifications, and coordinating with contractors—but when you’re suddenly expected to evaluate whether $150/hour for a crane is reasonable or if 40 hours of labor for a specific task makes sense, you could be left in the lurch.

Setting Up AI to Think Like a Cost Analyst

Before using AI for change order evaluation, establish your role and the standards contractors should meet.

Essential Context for AI

“I’m a construction manager for a public agency reviewing a contractor change order proposal. My responsibility is to protect public funds by ensuring change orders are properly justified and reasonably priced. I need to identify missing documentation, questionable costs, and scope items that should be covered under existing contract provisions. The contractor has the burden of proof to justify all costs and time extensions. I’m not a cost estimator, so I need help identifying what questions to ask and what backup documentation to demand.”

Define the Change Order Type

“This change order addresses [utility conflict/plan error/unforeseen conditions/owner-directed change]. The contractor claims [brief description of issue]. They’re requesting [cost amount] and [time extension]. I need to verify this is properly documented and reasonably priced compared to contract unit prices and industry standards.”

Four Essential AI Applications for Change Order Review

1. Documentation Gap Analysis: What’s Missing?

Most change orders lack adequate backup documentation. AI can help you identify exactly what additional information you should demand.

The Prompt: “Review this change order proposal and identify missing documentation that I should require before approval. Check for: (1) Detailed scope breakdown showing exactly what work is included, (2) Labor breakdown by trade with hours and rates, (3) Material quantities and unit prices with supplier quotes, (4) Equipment breakdown with rates and operating hours, (5) Subcontractor quotes for specialty work, (6) Photos or documentation of conditions requiring the change, (7) Critical path schedule analysis for time extensions, (8) Comparison to contract unit prices for similar work. List specific documentation I should request from the contractor.”

Why This Works: Instead of accepting vague cost summaries, you’ll have a professional checklist of backup documentation to demand. This puts the burden back on the contractor to justify their pricing.

2. Cost Component Breakdown and Red Flag Detection

AI can help you dissect pricing and identify elements that need closer scrutiny.

The Prompt: “Analyze this change order pricing breakdown and help me identify potential issues: (1) Compare labor rates to prevailing wage requirements for this project, (2) Flag any equipment rates that seem excessive for this region/project type, (3) Identify markups on materials and subcontractor work, (4) Point out any cost categories that seem inflated or unnecessary, (5) Compare pricing to contract unit rates for similar work items, (6) Calculate total markup percentages and identify if they align with contract terms, (7) Flag any ‘soft costs’ or overhead that may not be justified for this change type.”

Sample Questions AI Will Help You Ask: “Your electrical rate is $95/hour but the contract electrician rate is $78/hour—explain the difference” - “You’re charging 8 hours of foreman time for 4 hours of actual work—justify the supervision ratio” 

3. Scope Verification and Contract Cross-Reference

Ensure you’re not paying for work already covered under existing contract items.

The Prompt: “Compare this change order scope to existing contract provisions and help me identify any overlap: (1) Review if any proposed work should be covered under existing bid items, (2) Check if the contractor should have anticipated this work during bidding, (3) Identify any work that’s considered standard construction practice, (4) Flag scope elements that seem inflated beyond the actual issue, (5) Determine if proper notice requirements were followed for this change type, (6) Verify the contractor followed contract procedures for unforeseen conditions/plan errors.”

📃Real World Example

Instead of accepting a change for: “Additional excavation due to soft soils.”

AI helps you ask: “Did the geotechnical report indicate variable soil conditions? Is the contractor claiming this was truly unforeseeable? Does the contract include provisions for differing site conditions?”

 

4. Time Extension Analysis and Critical Path Impact

Time extensions are often the most valuable part of change orders, and the least understood by contractors and CMs alike.

The Prompt: “Evaluate the time extension request in this change order: (1) Determine if the work described actually impacts the project critical path and changes the project end date, (2) Require baseline schedule and current schedule update to verify critical path changes - if the project end date doesn’t move, there’s no legitimate time extension, (3) Identify any concurrent delays or contractor-caused issues that reduce legitimate impact, (4) Check if the contractor provided adequate schedule analysis per contract requirements, (5) Flag any time extension that seems excessive for the scope of work, (6) Verify the contractor followed proper notice requirements for time extension claims, (7) Suggest questions to ask about project acceleration or mitigation efforts.”

Key Questions AI Helps You Formulate: “Provide your baseline schedule and current updated schedule to show how the critical path has changed” - “If this work doesn’t change the project end date, explain why you’re claiming time extension” - “Show me how this work impacts the critical path activities” - “What mitigation efforts did you consider to minimize time impact?” - “Are there concurrent contractor delays during this same period?”

Advanced AI Applications for Change Order Defense

Prevailing Wage and Contract Compliance Verification

“Help me verify this change order pricing complies with prevailing wage requirements and contract markup provisions for [state/agency]. Check that: labor rates meet prevailing wage minimums for each trade, overhead and profit percentages align with contract specifications, material markups don’t exceed contract allowances, and subcontractor pricing includes required prevailing wage compliance.”

Negotiation Strategy Development

“Based on the weak points in this change order proposal, help me develop a negotiation strategy. What elements are most questionable? What alternative approaches might reduce costs? What additional documentation should I demand before any approval?”

Common Change Order Scenarios and AI Solutions

Utility Conflict Resolution

Typical Contractor Submission: “Unforeseen utility conflict - $23,000” AI-Enhanced Response: “Provide: utility location drawings you reviewed during bidding, photos of actual vs. expected conditions, detailed breakdown of relocation work, quotes from utility company, schedule analysis showing critical path impact, documentation of coordination efforts prior to construction.”

Plan Error Corrections

Typical Contractor Submission: “Plan error requires design modification - $31,000 plus 10 days”

AI-Enhanced Response: “Document: specific plan discrepancy with sheet references, why this wasn’t discoverable during bidding, breakdown of actual vs. plan requirements, design costs vs. field modifications, schedule impact analysis, efforts to minimize scope and cost.”

Unforeseen Site Conditions

Typical Contractor Submission: “Rock excavation not shown on plans - $45,000”

AI-Enhanced Response: “Provide: geotechnical report review and interpretation, photos/samples of actual conditions, comparison to contract boring logs, equipment productivity analysis, third-party verification of conditions, documentation that proper notification requirements were followed so agency inspector could verify conditions before work proceeded.”

Building Your Change Order Defense Toolkit

Create Standard Information Requests

Use AI to develop template requests for additional documentation based on change order type. This ensures consistency and prevents contractors from submitting minimal backup.

Develop Cost Reasonableness Benchmarks

“Help me create benchmarks for evaluating common change order costs in our region: typical equipment rental rates, standard labor productivity for common tasks, reasonable markup percentages, and material cost expectations.”

Prepare for Contractor Pushback

“Contractors often respond to documentation requests by claiming urgency or threatening delay. Help me prepare professional responses that maintain our documentation requirements while addressing project timeline concerns.”

Quality Control: Final AI Review Before Approval

Before approving any change order, use AI for a comprehensive final check:

Final Review Prompt: “Perform a final evaluation of this change order as if you were a public agency auditor reviewing our approval decision. Rate the adequacy of: scope justification, cost documentation, time extension analysis, contract compliance, and overall protection of public funds. Identify any remaining vulnerabilities or documentation gaps that could create audit findings or public scrutiny.”

From Manual Analysis to Integrated Protection

While these AI techniques can dramatically improve your change order evaluation capabilities, imagine if this intelligence was built directly into your project management workflow. Instead of manually cross-referencing contract documents and searching for similar historical changes, you could have AI automatically flag potential issues, suggest required documentation, and provide cost benchmarking—all within the same system where you manage daily reports and project communications.

That’s exactly what we’re building at BridgeDoc. Our AI-powered change order module doesn’t just help you ask better questions—it automatically cross-references contract provisions, compares pricing to historical data, tracks documentation requirements, and ensures you have the backup needed to defend every approval decision. Every change order becomes part of a protected audit trail that demonstrates fiscal responsibility and thorough analysis.

🚨Ready to see how AI can transform your Construction Management process?

Schedule a DEMO to discover how BridgeDoc is incorporating Artificial Intelligence into every aspect of project documentation. From Daily Reports to closeout packages, so you can focus more time on managing projects and LESS TIME on paperwork.

 

What’s your biggest challenge with change order evaluation? Have you discovered effective strategies for demanding better contractor documentation?

Share your experiences with us at Contact@BridgeDoc.com

 

Download Your Free BridgeDoc Resource here

Change Order Evaluation AI Guide for CM's

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BridgeDoc is a document control system for public works construction managers and inspectors that helps public agencies and their consultants effectively navigate their risk with tools such as daily reports, photo records, weekly statements of working days, submittals, and RFI’s.

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Authored by: BridgeDoc's Marketing Team
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BridgeDoc is a cost-effective solution that provides a straightforward, standardized document control system relevant to public construction projects of any size.  Any questions? Reach out to us at contact@bridgedoc.com 


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