Ease the change order review process with a detailed scope of work.
Q: What is the best way to deal with project delays?
A: Communicate, adjust and protect your profits.
“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.”
Today I dig into how we communicate with our clients when we discuss change orders. We discuss building trust and clearly communicating with our clients to ease the pain surrounding change orders.