Your client is questioning the need for a change order. How do you justify the necessity of the change?
Ever navigated the choppy waters of change orders? Dive in and share your strategies for justifying these essential shifts.
Your client is questioning the need for a change order. How do you justify the necessity of the change?
Ever navigated the choppy waters of change orders? Dive in and share your strategies for justifying these essential shifts.
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When a client questions the need for a change order, focus on the project's scope, quality, and safety. Explain how the change ensures the project meets these standards, prevents future issues, or addresses unforeseen conditions. Emphasize that the change is a proactive step to avoid bigger risks or costs later, ensuring long-term success.
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1. Provide Clear Documentation 2. Highlight the Impact of Not Implementing the Change 3. Explain the Root Cause 4. Relate the Change to the Project’s Success 5. Break Down the Costs 6. Refer to the Contract
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1. Document the Need: Clearly record reasons for the change, including unforeseen conditions or client-requested modifications. 2. Cost Impact: Provide detailed cost estimates for labor, materials, and other resources affected by the change. 3. Time Adjustments: Outline the impact on the project timeline, including any potential delays. 4. Approval Process: Ensure that all change orders are formally approved by the client and relevant stakeholders. 5. Communication: Maintain open lines of communication with all parties to explain and justify the necessity of the change.
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When a client questions the need for a change order, it's important to explain that changes can arise due to unforeseen conditions or adjustments to the project scope. A change order ensures that any additional work or material costs are documented, preventing misunderstandings later on. It's not about complicating the process but about maintaining transparency and ensuring the project stays on track. By addressing changes now, we avoid potential delays or budget overruns down the line.
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Change orders arise due to Variation in the quantity observed over the quantities mentioned in BOQ or Non Tendered items. As a part of validation and approval towards the change, one needs to share few supporting documents as listed below 1. Justification and need for the change along with complete details of change. 2. In case of Quantity Variation - Variation statement with Approved Shop drawings 3. In case of Non Tendered items - Origin of the change i.e., Stakeholder request, Non availability of Material, Change in local laws and regulations etc., 4. Transperency - Change log compiling all changes and its status.
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1. Availability of materials - call off vs the delivery of the project can often mean a change order being put forward to maintain the momentum on the project. 2. Health and safety - often on apartments changes in building regulations can mean that fire or other factors mean a change order is necessary. The change order can be backed up by working or extracts from the governing body. 3. Late or delayed decision making. If the contractor is on a deadline based on the contract and having stagnant build some will often make the decision to plow forward with construction on a base spec with a change necessary once the decision by the client has been made.
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As a Contractor, i would seek a change order if it is not covered by the original scope. The necessity could be further justified as it is a requirement to suffice the current objective and deliverables of the project and the needed features were originally left out in the scope and drawings during the ITB stage.
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Everyone dislikes the change order conversation, but it’s a necessary part of the construction process, especially as the industry and codes continue to change and the knowledge and skills of the labor force decline. When faced with a client that disagrees with a change order I focus on the facts on what brought about the change. Was it a design flaw, scope gap, design change, code issue, unforeseen circumstances, etc. when you allow your change orders to detail out the facts and the numbers clearly line up with those, it is rare that a change order would be questioned. You’re all on the same team, don’t let the emotions run the conversation, which is easier when done when discussing clear and accurate information based on facts.
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To justify the necessity of a change order to your client: Explain the Issue: Clearly state the reason for the change (e.g., unforeseen site conditions, design modifications, or regulatory requirements). Highlight Impact: Show how proceeding without the change would affect quality, safety, budget, or timelines. Provide Data: Present supporting documents like reports, design revisions, or inspection results. Offer Solutions: Outline the benefits of the change and any cost-saving measures. Show Client Value: Emphasize how the change ensures the project’s success and aligns with the client's goals.
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First things first. Explain the necessity for the CO with your client. Be extremely detailed in your cost estimate with both material quantities, equipment usage, and labor costs. If he/she questions the amount, have the Owner give it to his design team for analysis. If he doesn't take your word for the cost, perhaps he will take theirs. Keep your client aware of not only budget, but schedule implications while this discussion is ongoing. Give him an estimate of time lost if you consider traditional working hours with no O/T. The more open you are with him, the more likely he'll be in his final understanding of the need here.
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