Change orders can create sticky situations with our best clients.
- The challenge
- Changes will happen
- We don’t want a bad rep for asking for too many changes
- We don’t want to give away our profits
- There is a fine line to balance here
- Types of changes
- Unknown / unforeseen conditions
- Added scope due to design errors or omissions
- Added scope due to Owner request
- Added scope due to contractor error
- Some are easier for your client to accept since some they expect – what about the others?
- Handle them properly and fairly
- price everything and let your client know – you don’t have to get a change order for all but at least let them know
- Build in a contingency up front if you can
- Balance the budget with offsetting value engineering
Do you price all changes?
Do you build in a contingency?
How can you use your change order management to your advantage?
How can you improve it?
Price everything and tell your client aware
Create contingencies up front
Promote your management