Change Order Backlog Calculator

Unresolved change orders create risk. This calculator sizes backlog impact.

Pending CO count

Aggregate CO value

Avg days pending

Daily carry impact

Backlog exposure

$483,600

Avg CO value

$37,500

Carry on backlog

$33,600

How the math works

Exposure = aggregate CO value + carry on delayed resolution.

CO aging discipline is free insurance. Weekly CO review with firm dispose-within-14-days rule prevents 60+ day backlog accumulation that wrecks projects.

How to Use

Enter pending change orders count.
Enter aggregate $ value.
Enter average days pending.
Enter daily carry impact.
Read backlog exposure.

Frequently Asked Questions

Typical backlog?

Healthy projects keep backlog under 30 days old, under 5% of contract. Troubled projects accumulate 60-90 day backlog at 10-15% of contract. Drives schedule and dispute risk.

Review cadence?

Weekly CO review meetings with owner and PM. Dispose of each CO within 14 days — approve, reject, or negotiate. Open-ended delays accumulate carry and create bid positioning for future disputes.

Disputes?

Work-as-directed clauses require contractor to proceed and reserve rights. Pay approved COs promptly; don't tie approved CO cash to unrelated disputed items. Preserve relationship for remainder of project.

Who owns this risk — sponsor or lender?

Construction risks are typically shared: hard-cost overrun owned by sponsor (via completion guaranty), soft-cost and delay risks shared per contract, force-majeure excused but bears owner carry cost. Document risk ownership in the loan agreement and GC contract before closing. Disputes get expensive when roles are unclear. Institutional deals spell out every allocation in writing.