25% of Disputes Arise from Scope Change
While the AEC industry has made significant progress in reducing scope-related disputes, they still remain the #1 factor. According to HKA’s 2025 CRUX Insights Report, 25.7% of project disputes arise from scope changes.
This issue is critical to prioritize as disputes grow more expensive. The 2025 Arcadis report, Construction Disputes in Motion, found that the average value of disputes surged to 60 million dollars. Together, these findings emphasize the need for proactive dispute prevention.
Why Scope Is So Vulnerable
Scope-related disputes rarely stem from bad intentions. More often, they arise from unpredictable market conditions beyond any party’s control. Today, projects contend with:
- Economic volatility
- Material price spikes
- Supply chain disruptions
- Labor shortages
- Regulatory shifts
- Climate-related risks
- Political Policies
The Case for Proactive Change Management
Avoiding disputes requires a plan to address changes before they escalate.
HKA financial expert Kimberly Reome notes that the industry must spot risks early, keep learning, and evolve contract approaches. She remarks, “That’s the best path to reducing disputes going forward.”
When change is anticipated and formalized, it becomes manageable. When it is improvised, it becomes contentious. At AIA Contract Documents, we have seen the contracting process establish respectful working relationships.
Our contracts include guidelines to address change and maintain alignment across teams.
This means having clarity on:
- Initiating scope changes
- Assessing impacts
- Adjusting timelines
- Recalibrating payments
How to Address Changes in Scope at the Contract Level
The Arcadis report states that contract and specification reviews remain the most effective dispute avoidance technique.
That’s excellent news. AIA Contract Documents publishes nationally trusted agreements that stop miscommunications in their tracks. These contracts define scope in detail and provide complementary agreements to address additions or changes to scope.
Construction projects inevitably face disruption. The difference lies in how teams respond. Scope adjustments affect responsibility, timelines, and payment. Without clarity, even well-intentioned teams can end up in disagreement.
Effective solutions include:
Change Orders: Change Orders (G701) must be formally executed. When all parties sign off on the changes and their implications to the project, confusion is eliminated.
Change Directives: When parties cannot align, a Construction Change Directive (G714) allows the owner to issue a clear, signed, and documented path forward. Always follow up with an official AIA Change Order to properly adjust contract sums.
Amendments to Professional Services Agreements: Use these agreements to formally document changes to scope, compensation, or contract terms, aligned with the original agreement. Some examples include:
G801-2017 Notice of Additional Services
G802-2017 Amendment to the Professional Services Agreement
G803-2017 Amendment to the Consultant Services Agreement
Supplemental Agreements: When architects, contractors, or trades are asked to perform work outside the original contract, supplemental agreements allow scope, budget, and timelines to be adjusted without dispute.
Supplemental agreements expand scope, align expectations, and ensure fair compensation for new requirements. Some examples include:
B202-2020 Standard Form of Architect’s Services: Programming
B203-2017 Standard Form of Architect’s Services: Site Evaluation and Project Feasibility
B205-2017 Standard Form of Architect’s Services: Historic Preservation
Prevention Over Reaction
When change documentation is embedded into the contract lifecycle, stakeholders are better equipped to:
- Track impacts in real time
- Maintain transparency
- Avoid miscommunication
- Reduce escalations
The next evolution of dispute reduction requires nationally trusted contracts and standardized change-order processes.
Arcadis respondents consistently ranked contract and specification reviews as the most effective dispute avoidance technique. The strongest defense against disputes still begins before work starts, in how contracts are written, reviewed, and operationalized.
The most successful projects treat change not as an exception, but as a planned reality embedded in the contract itself.
Enjoy on-demand access to every tool you need to manage scope changes with confidence.
AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.