How to Deal with Change Orders
Change orders are a common occurrence in the construction industry; however they can easily be a source of conflict and lead to delays. They may be initiated by the owner, the contractor, or a third party, and they can be for a variety of reasons, such as changes to the scope of work, changes to the schedule, or changes to the budget.
In most projects, a change of some sort is inevitable. And when they do arise, it’s imperative that they are managed effectively to ensure that the project is completed on time and within budget.
Here are some tips for dealing with change orders:
Be proactive. Don't wait for a change order request. If you think there may be a change needed, bring it up early in the project. This will give you time to negotiate the terms of the change order and avoid surprises later on.
Get everything in writing. Once you have agreed on the terms of a change order, make sure it is in writing and signed by all parties involved. This will help to avoid any disputes down the road.
Be realistic about your costs. When estimating the cost of a change order, be sure to factor in all of the associated costs, such as materials, labor, and overhead. Don't underestimate the cost of a change order, as this could lead to financial problems for your company.
Over communicate. When there is a change order, it is important to communicate with all stakeholders, including the project manager, the superintendent, subcontractors and workers. This will help to ensure that everyone is on the same page and that the change order is implemented smoothly.
Be flexible. Change is inevitable in the construction industry, so it is important to be flexible when dealing with change orders. Be willing to work with contractors and other parties to find solutions that work for everyone.
By following these tips, you can help to ensure that change orders are managed effectively and that they do not have a negative impact on your project.
Here are some additional tips for dealing with change orders:
Keep track of your time and expenses. This will help you to accurately estimate the cost of any future change orders.
Build change orders into your budget. This will help to prevent surprises and financial problems.
Have a change order clause in your contract. This will help to clarify the process for requesting and approving change orders.
Be prepared to negotiate. Not all parties are guaranteed to agree with your initial estimate for the cost of a change order. Be prepared to negotiate and compromise.
Be professional and courteous. Even if you disagree with one another, it is important to remain professional and courteous. This will help to create a positive working relationship and make it more likely that future change orders will be handled smoothly.
To learn how Green Heart Enterprises can help simplify the change order process on your next project, Contact Us Today →