Managing Change
Remodeling is a dynamic and exciting process in which progress occurs every day. Professional remodeling contractors strive to make each stage of the job easy to understand and identify so that there's no confusion about what's happening day-to-day and within the overall scope of the project. Because things can happen quickly and dramatically, however, we help our clients make decisions well ahead of time to ensure they get the "renewed" home of their dreams.
Before the first nail is hammered, we collaborate with our clients to make most of the big decisions, but that is not necessarily the end of decision-making. Once the job is underway, clients often think of a few things they'd like to change. Such changes may range from picking a different style or finish for the bathroom cabinets, selecting a different floor pattern or material in the kitchen, or just installing an extra light switch.
We document such requests, called "change orders," to make sure everyone has a clear understanding of the scope and cost of the alteration to the original plan. Our goal is to make sure our clients are satisfied with their ‘new' home, it's also important for the homeowner to understand how change orders affect the building process. When owner and remodeler communicate well, the impact of change orders on the construction schedule and budget can be minimized.
The first thing to understand about change orders is that every one made after construction begins has a cost attached. The cost may be the time and labor it takes to make the change or it may be the price of additional materials or products required.
The timing of a change order has a big impact on such costs. Typically, the later in the building process, the more expensive the change order. Some changes, of course, are simply impossible or truly cost prohibitive, such as altering the foundation or adding a basement once any structural frame work on the project has been started.
We respect our clients' desires to get exactly the house they want. We know that some finishes and even room sizes and door and window placements may be hard to visualize until they're actually installed or built. Change orders will happen! For that reason, we've become more sophisticated and systematic about managing and accommodating change orders. A good change order process not only ensures effective communication and provides assurances among all involved, but also helps us stay on schedule and minimize additional costs.
The change order process: The most effective change order processes for professional home remodeling follow a general pattern that creates a paper trail and provides reliable cost information up front, including:
- Centralization. Change order requests are often managed by one person or a single department to ensure efficient communication among everyone involved. This includes specialty trade contractors, suppliers, our job site managers, and, of course, the client. We discourage owners from making special requests directly to a trade contractor, as this is a quick route to misunderstandings and disrupted schedules.
- Documentation. Change order requests are transferred to an electronic or paper-based change order form that initiates a paper trail and ensures greater accuracy and communication.
Terms. As experienced remodelers, we are familiar with many of the most common changes that clients make. We often have a good idea of the cost and time those changes require. As a result, we can communicate the terms quickly so that the homeowners can make an informed decision in time to make the change or decide against it without signifanctly disrupting the project schedule or blowing the budget.
- Confirmation. It's important to everyone involved that no change occurs without a client's signature. Clients must approve the cost and terms, as well as the style, finish, or other details about the change. To avoid possible misunderstanding, we also ask clients to sign off on any impact on the project's completion date or other aspects of the construction schedule.
- Payment. Payment can vary depending on the type, size and scope of a change. They may be billed separately, as soon as the change has been made and completed to the client's satisfaction. Sometimes we ask for percentage of the cost or full payment up front before making the alteration, depending on the nature of the change.
By using a dedicated, document-based change order system, our clients can be assured that any changes they consider -- whether minor or extreme -- are taken care of in a timely fashion without confusion, miscommunication or unnecessary costs.
Warm regards,
