Navigating Change Order Management: A Masterstroke for General Contractors

Updated: Nov 21, 2023

Bill Campbell

Construction Law Consultant

Reading Time: 3 mins
Change Order Management Construction Project Records Keeping Contract Adjustments Documentation of Changes Change order Records Scope of work Adjustments

Things may be very unpredictable in the construction industry. General Contractors (GCs) must negotiate the complexities of change order management to ensure that their projects proceed without problems. Unfortunately, disagreements are common in the construction industry and typically arise from improper handling of modification orders. Let's analyze the procedure and identify easy ways to make change order handling a wise decision instead of a possible disaster.

Keep a Record of Every Change

Consider maintaining records like you would a narrative for your project. GCs must record every tiny alteration made to the project as it happens, much like documentarians. Note everything, including last-minute requests from clients, schedule changes, or subterranean adventures. This is more than simply paperwork—it's like having a time machine that records the development of your project. Additionally, it helps prevent conflicts brought on by miscommunication or forgetfulness.

Send Change Orders ASAP

Time is as valuable as money in the construction industry. It's not only a good habit, but it's necessary to send them promptly. It ends a domino effect that could damage project schedules and owner relationships. Prompt action demonstrates professionalism and a solid dedication to completing the task successfully.

Building Trust Through Communication

Effective communication is essential for projects to succeed. GCs must communicate openly and clearly with project owners at every procedure stage. Consider frequent meetings as rehearsals with project owners as the audience and any changes as the spotlight. Clear communication creates a positive atmosphere and lessens the possibility of minor setbacks becomingsignificant issues.

Teach Your Team: Making Everyone a Pro

Knowledge is a powerful tool in the building industry. GCs must ensure that all team members, including site managers and subcontractors, are knowledgeable about managing change orders. The team performs the processes of recording and submitting modifications throughout training sessions, which function similarly to rehearsals. An educated team minimizes the possibility of issues stemming from miscommunication within the group.

Negotiate Fairly: Turning Conflicts into Solutions

Change orders can cause disputes, but GCs can use reasonable negotiation to turn them into opportunities. Consider the GC as the team leader leading the negotiations, outlining the necessity of the change and the associated expenses. Working together creates a good rapport, transforming issues into opportunities to strengthen relationships. Fair negotiation is an art that ensures that a project's closing notes are successful and satisfy the client, not just competence.

Effectively handling change orders, which may make or break a project, is crucial in the construction sector. To prevent disagreements with project owners, GCs must successfully manage this process.
GCs can transform their construction sites into places where long-lasting partnerships and great projects receive the recognition they deserve by emphasizing the importance of maintaining accurate records, communicating transparently, and bargaining fairly.
Remember that a well-managed change order is more than just a formality. It's an aggressive move that guarantees the project's success and the customer's happiness, ensuring the buildings we construct are substantial in more ways than one.

Bill Campbell

Construction Law Consultant

A dedicated and results-oriented Construction Compliance Officer with a passion for ensuring that construction projects meet the highest standards of safety, quality, and regulatory compliance.

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