Change Order Horrors and Improvements

02/24/23 • 31 min

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CHANGE ORDERS Podcast

Introduction: the one constant in construction is that the projects will change! Accepting this reality will help us build better experiences with each project.

Change orders help us keep projects on track and that projects are completed successfully. The value of a change order is that all stakeholders have a say in the cost, scope, and time that will be adjusted. It allows all parties associated with being on board with the changes.

Story:

Customer X. and his 170k dollar change order that we have fought for six months to get approved and finalized.
1. Details were not clear or documented in the system
2. The customer remembered things differently from the trades, which put the builder and trade in a battle.
3. The customer wanted to negotiate each line item 6-12 months after the work was completed, which resulted in concessions by trades, builders, and customers.
Base contract and selections
1. Create your baseline contract
2. Build out your specifications for each portion of the build
3. Estimate and price out each option as accurately as possible
Changes to your scope of work (scope, cost, time, etc.)
1. First, work will only be completed with a written and signed change request.
2. Changes can come from site conditions, material shortages, a change in design, the client finding something on Pinterest, etc.
3. When you agree to the change, consider all impacts on the project. Procurement? Labor? Time? Ensure the customer is made aware of each point when they agree to sign the change request
Change orders must be managed to ensure success
1. Ensure we have a change order process or playbook
2. Do all internal and external parties understand the playbook?
3. Has the change order process been communicated to the customer? I would go as far as to create a specification or addendum to your contract to specify a change order process.
4. The lack of a change order process WILL create animosity, confusion, and a spoiled reputation for all involved, and it is all avoidable.

Conclusion:

Change Orders are essential to all projects.

Communicate the change order process up front and reiterate it to each trade you bring on and each internal team member.

#homebuilder #construction #coaching #changeorders #documentation #contracts #process #personaldevelopment

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Carolyn can be found on LinkedIn at:
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Email for feedback, questions, complaints, etc:
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We appreciate any and all feedback so feel free to send a text.

CHANGE ORDERS Podcast

Introduction: the one constant in construction is that the projects will change! Accepting this reality will help us build better experiences with each project.

Story:

Customer X. and his 170k dollar change order that we have fought for six months to get approved and finalized.
1. Details were not clear or documented in the system
2. The customer remembered things differently from the trades, which put the builder and trade in a battle.
3. The customer wanted to negotiate each line item 6-12 months after the work was completed, which resulted in concessions by trades, builders, and customers.
Base contract and selections
1. Create your baseline contract
2. Build out your specifications for each portion of the build
3. Estimate and price out each option as accurately as possible
Changes to your scope of work (scope, cost, time, etc.)
1. First, work will only be completed with a written and signed change request.
2. Changes can come from site conditions, material shortages, a change in design, the client finding something on Pinterest, etc.
3. When you agree to the change, consider all impacts on the project. Procurement? Labor? Time? Ensure the customer is made aware of each point when they agree to sign the change request
Change orders must be managed to ensure success
1. Ensure we have a change order process or playbook
2. Do all internal and external parties understand the playbook?
3. Has the change order process been communicated to the customer? I would go as far as to create a specification or addendum to your contract to specify a change order process.
4. The lack of a change order process WILL create animosity, confusion, and a spoiled reputation for all involved, and it is all avoidable.

Conclusion:

Change Orders are essential to all projects.

Communicate the change order process up front and reiterate it to each trade you bring on and each internal team member.

#homebuilder #construction #coaching #changeorders #documentation #contracts #process #personaldevelopment

Support the show

Previous Episode

Hire a 10k a year coach?

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Hiring a coach could be one of the smartest investments in personal development.

This episode discusses some objections to hiring a coach and the counterpoints.

Skepticism of the benefits or need
1. It is good to be skeptical. Let’s dive into some of your other objections to hiring a coach.
Cost
1. Highlight the value of the coaching
2. Address specific concerns
3. Customer testimonials
4. Money back guarantee
The time commitment
1. Technology allows us to coach from a distance
2. Prioritize your schedule, and the time will be well spent.
3. Focus on the benefits of your time
Fear of change
1. It’s normal to have anxiety and a fear of change
2. Set clear goals on what you want to get from the coaching sessions
3. Take small steps and allow yourself grace when you fall short
4. Lean in and embrace the discomfort. Growth comes from uncomfortable situations.
5. Trust the process. Coaching is a collaborative process that will require trust and openness. Trust that the coach you hire will help you achieve your goals, and be open to feedback.
Perception of weakness
1. There was a time that people might consider hiring a coach or counselor to mean that you are weak. Tom Brady. Tiger Woods. Kobe Bryant. Michael Jordan. Venus Williams. They will go down as some of the greats of this generation because of coaching and the trust they put into the coaches they retained.
A lack of trust
1. It is natural to be skeptical and question if a coach is trustworthy.
2. Do your research. Look for coaches that specialize in the field that interests you.
3. Set up a consultation with the coach.
4. Be honest and upfront with the coach. Goals. Fears. Expectations.
5. You get out of coaching what you put into it.
6. Be patient. Rome wasn’t built overnight. Commit to six months and perform routine check-ins on progress

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Next Episode

Get Out and Walk

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Walking Projects - Podcast

Introduction: Each time we walk a project in construction, we need to focus on quality.

The job superintendent walks their projects at least once daily, if not twice. What is the intention of our walk? What are we looking for, if anything?

How often does the sales agent walk homes under construction?

How often does management walk homes under construction?

What do people outside the superintendent do when they walk homes?

Story:

Tornado Manager: AKA The Baker. The manager would come to the job site, walk a few jobs, raise hell with everyone, and disrupt anything he touched.
1. He intended to ensure everyone knew he was in charge.
2. The employees were all scared of him and called each other to warn him if he was in the neighborhood or heading that way.
3. The team would only raise concerns or opportunities for improvement if they were confident of what he would say or how he would treat them.
Coaching Manager: A manager that listens to your struggles and opportunities and helps guide you toward a good solution for the project.
1. Not interested in the spotlight
2. Willing to support you and create a culture where vulnerability is accepted
3. Support encourages and holds the team accountable.
Sales Team: In most cases, our sales team knows more about the selections in each home than anyone else.
1. Walk the home to help and expose items that might be incorrect for the home.
2. Take good pictures while walking the home and add them to the weekly buyer update.
3. The superintendent often carries more houses and stress than they should. Help them build the home you sold, so the customer is happy.
Design Team: The designers know the selections better than anyone in the business.
1. Walk homes to see how everything comes together.
2. Be comfortable making changes to your program if the product doesn’t meet your expectations.
3. Our customers deserve the product they are purchasing, and your eye for detail is critical for the superintendents in the field to turn over a quality product.

Conclusion:

We are all on the same team to deliver a quality home or project to our consumers. Each person on the team should walk homes with an eye for quality and help one another reach a new level of quality with each walk we perform.
#constructionpodcast #podcast #construction #homebuilder #projectmanager #superintendent #personaldevelopment #professionaldevelopment

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