Project changes provide us a chance to show our clients why they hired us.
- Elite contractors see changes as opportunities
- Our chance to remind clients why we are the best
- We handle them properly with
- Good communication
- Great documentation
- Open cooperation
- Approach changes with a solutions mindset
- Try to achieve the same result with no cost impact
- Provide alternative solutions the lower the cost impact
- Provide solid documentation with full impact
- Keep the right mindset
- Too often contractors see changes as opportunities to boost profit – avoid the trap
- Keep your best interests in mind but keep your client’s best interests as a close second
- At the end of the day your client needs a result and we are here to deliver that result in the best way possible
Delays happen in construction, be proactive and manage the impact.
Q: What is the best way to deal with project delays?
A: Communicate, adjust and protect your profits.
- Communicate early and often
- Know your contract and your schedule
- As soon as it appears there may be a delay – notify your client with a “heads up”
- Document clearly cause, impact, options, adjustments and resolutions
- Manage your costs
- Adjust your schedule where you can
- Manipulate your manpower to deal with the delay without cost impacts
- Shift your plan around if you can
- Protect our bottom line
- Do all you can to avoid added costs caused by delays but if you can’t
- Document the impacts and communicate before there is an actual impact
- Present options and let the client participate in the decisions
- It’s our right to make a profit so don’t be afraid to ask for it
“Taking the time to present change order proposals with the same effort that we put into our regular proposals will make the process much smoother and simplify the change order process.”
We will always face change orders on our projects, it’s the nature of construction. How we handle those change orders it what differentiates the Elite Contractors.
Proper change management protects our profits and our stakeholders.
Today we discuss the importance of properly managing change orders. As elite contractors we know that we must strive to solve problems better and this is one area where we can really shine. Taking the right approach to managing change orders can set us apart from the industry.
Today I discuss a topic I get questioned about all the time from my subcontractor clients, overhead costs versus job costs.
This usually comes up in a conversation about a change order on a project where the contract limits the allowable overhead percentages to 10% or 15%. The argument is always, “my overhead is more than 15%, I can’t make money on a change order with limits like this.”