The $1.2 Million Handshake That Destroyed a Business
How Small, Undocumented Changes Turn Into Massive Disasters
Change Order Mastery from Cope C. Thomas, Attorney
300+ Clients Served • Columbia University Instructor • 25+ Years Experience
After serving 300+ clients on UpWork and teaching contract negotiation to executives at Columbia University, I’ve witnessed how poor change order practices destroy even the most successful businesses.
In every project, change is absolutely certain—but financial chaos doesn’t have to be. When costs spiral out of control, timelines slip dangerously, and blame starts flying in all directions, the root cause is almost always the same: a contract change gone catastrophically wrong.
Most agreements stay completely silent on how to handle change properly—leaving teams to stumble through vague emails, fading memories, and devastating courtroom battles.
💡 The Fortune 500 Secret: In my $100M+ energy infrastructure deals at General Electric, we never left change management to chance. Every modification followed bulletproof procedures that prevented disputes before they started.
But what if there were a better way for your business? A systematic approach to turn project changes from sources of confusion and conflict into opportunities for control and profitability?
The difference between smooth projects and expensive disasters isn’t avoiding change—it’s mastering the overlooked best practices that Fortune 500 companies use to maintain control when everything else shifts.
Changes to a contract are inevitable and expensive. However, there is seldom guidance on best practices expressly stated within the contract. We briefly address the best practices here. In short, changes should be written to accurately preserve modifications to the original contract because verbal changes are forgotten or misinterpreted, especially over time and after many changes. And they are harder to prove in court later on. So, the parties should talk and seek agreement through good, clear communication. A change should not be problematic and disruptive but instead be achieved via a mutually agreed-to process on adjustments to the scope of work, price, and completion schedule by having proper contract change documents in place. This helps the project to finish on time, within budget, and demonstrate transparency and accountability.
🚨 $1.2 Million Disaster: When a Handshake Nearly Caused Bankruptcy
The Project: Commercial Retail Renovation
A successful commercial contractor was nearing completion of a major retail renovation project. The relationship with the owner was excellent, the work was progressing smoothly, and profits were healthy.
Then came the “simple” verbal request.
🤝 The Fatal Handshake: The owner asked for custom glasswork to be added to the renovation. “No problem,” said the contractor. They shook hands, exchanged a few confirming emails, and work began.
No written change order. No formal documentation. Just trust and good intentions.
💥 The Devastating Betrayal: Months later, when invoices for the custom glasswork arrived, the owner completely denied approving the additional costs.
Court Battle: With no formal paper trail, the court sided with the owner—verbal agreements and informal emails weren’t enough proof.
The crushing result? The contractor absorbed a $1.2 million loss and nearly went bankrupt. A thriving business destroyed by a “simple” change that wasn’t properly documented.
💡 Expert Analysis: “I’ve seen this exact pattern destroy contractors repeatedly in my 25+ years of practice. The tragic irony? Proper change order documentation—taking 15 minutes to create a written agreement—would have protected this entire $1.2 million claim. In contract law, good intentions don’t pay bills—proper procedures do.”
Don’t Let Small Changes Destroy Your Business
In the high-stakes world of contracts, it’s not the big decisions that get you—it’s the small, undocumented changes that pile up.
If you’ve ever faced a cost overrun, a schedule slip, or a courtroom battle over “who said what,” you’re not alone. These disasters happen because most businesses lack systematic change order procedures that protect them when projects evolve.
🎯 Fortune 500 Change Management Without the Fortune 500 Legal Bills
Get the same change order best practices I’ve taught to Columbia University executives and used in $100M+ infrastructure projects—without paying my usual $200/hour rate. This comprehensive guide gives you practical tools, real-world examples, and bulletproof contract language strategies to manage changes with confidence and clarity.
✅ Free expert consultation • ✅ 300+ clients served • ✅ Columbia University instructor
Master change orders before they master you