Why Change Orders Are Actually Revenue Killers (And How to Prevent Them)
Feb 15, 2026
In the world of franchise expansion, a change order is rarely just a line item.
It is a domino.
When you sign a change order for a lighting fixture or a wall placement in a GTA build-out, you aren't just paying for labor and materials. You are paying for the delay in your hiring cycle. You are paying for the marketing spend that is now hitting an empty storefront.
Most contractors see change orders as a profit center.
Operators see them as a failure of foresight.
The Invisible Cost of "While You’re At It"
In construction, "while you're at it" is the most expensive phrase in the English language.
Every time a plan changes mid-stream, the momentum of the project resets. In Ontario, where specialized trades are scheduled weeks in advance, a two-day shift in a plumbing rough-in can push your final inspection back by fourteen days.
That’s fourteen days of rent without revenue.
That’s fourteen days of a trained team sitting on their hands.
The Three Sources of Change Order Friction
Most change orders stem from three specific gaps in the pre-construction phase.
1. The Gap Between Brand Standards and Local Code
Franchisors provide the "what," but the City of Toronto or your local municipality dictates the "how." If your architectural drawings don't account for specific Ontario Building Code requirements for fire separation or barrier-free access, the correction happens on the job site. That is where it costs five times more than it would have on paper.
2. The Unseen Site Condition
This is the "landlord special." Previous tenants often leave behind HVAC units that don't meet current efficiency standards or electrical panels that are capped out. If these aren't audited before the lease is signed or the contract is bid, they become emergency change orders three weeks before your scheduled opening.
3. Late-Stage Decision Making
Indecision is a budget leak. Choosing a different flooring material after the screed is poured doesn't just cost the price difference of the tile. It costs the time required to source, ship, and re-sequence the flooring installers.
How to Protect Your ROI
As an operator, your job is to squeeze the risk out of the timeline.
Demand a pre-construction walkthrough. Before the first sledgehammer swings, walk the site with your GC and your MEP (Mechanical, Electrical, Plumbing) leads. Identify every discrepancy between the franchisor's kit-of-parts and the physical reality of the space.
Fix the plans, not the building. It costs $500 to change a drawing. It costs $5,000 to move a wall. Never start a build with "90% complete" drawings. That final 10% is where the profit margin of your first quarter usually disappears.
Validate long-lead items early. In the current GTA market, electrical components and specialized kitchen equipment can have lead times of 16 to 24 weeks. A change order triggered by a "discontinued" item in month three of a build is a catastrophic failure of planning.
Think Like an Owner
At Olive Tree Builds, we look at a floor plan and see a pro-forma.
We know that every day the paper stays up in the windows is a day your ROI is trending downward. Construction should be a predictable machine that delivers a revenue-generating asset.
The best change order is the one that never had a reason to exist.
If you want an experienced eye to review your plans before you break ground, give us a call and schedule a project audit.