On average, respondents reported, 32% of project revenue is lost to these unpaid change orders. That’s an enormous hit to take by any measure, but some corners of the industry have it even worse.

Breaking that down to geographical regions, 38% of companies in the UK reported losing half or more of their revenue to unbilled change orders. That number drops to 36% in Australia and New Zealand, then down to 24% in Canada, and a much lower 12% in the US. If we look at different trades, steel contractors have it worst with 42% of revenue lost on average to these change order issues, while concrete contractors experience a comparatively low 19%.

As dire as that may sound, it is likely an understatement of the actual costs, since in addition to the lost revenue there is the increased cost of performing the work. That will contribute even further to an already serious erosion of margins.  the work.