Job Ready Guide: Construction risk management-Taking control of change orders

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Most construction projects have at least 10% additional costs due to changes. This guide shows how to manage the change order process to recoup costs.

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Job Ready Guide: Construction risk management-Taking control of change orders

  1. 1. Job Ready Guide Construction risk management Taking control of change orders By Leslie Shiner and Deb Carpenter-Beck
  2. 2. Change happens Change happens Change happens
  3. 3. You start a job, and everything is running according to plan.
  4. 4. Thenyou hit unexpected soil conditions, “whileyou’re here” requests, orother out-of-scope circumstances.
  5. 5. Doyou get paid forall theworkyou do?
  6. 6. Areyou readyto overcome common change orderchallenges?
  7. 7. •  Set expectations about change orders from the start. •  Clearly lay out the scope of work. •  Provide detailed descriptions of work to avoid confusion about what is in scope. •  Provide customers with a sample change order form. Before contract signing
  8. 8. •  Don’t start any work without a signed change order. •  Get payment for a change order prior to any work. •  Charge something on the first few change orders 
 to set a precedent. •  Create a change order even if you won’t charge 
 the customer. Ideas to help manage the process
  9. 9. Learn more practical tips in ourJob ReadyGuide.
  10. 10. Becausewe care about construction, ourJob Readyguides are free! Download your complimentary copy now
  11. 11. Doyouworkin construction? Sage 6561 Irvine Center Drive Irvine, CA 92618-2301 SageCRE.com ©2014 Sage Software, Inc. All rights reserved. Sage, the Sage logos, and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc., or its affiliated entities. All other trademarks are the property of their respective owners. Learn why two new construction companies choose Sage every hour. Visit us at: SageCRE.com

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