Agreements Prevent Disagreements- Preventing the Need for Change Orders

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Stay in business long enough and you will run across a particularly frustrating breed of customer known as The Changeling. Changelings come in all sizes and shapes and often begin their sentences with “Well…last night I was thinking…couldn’t we move this over there and…”

No doubt, you’ve heard something similar before. For many clients, building a new home is the culmination of years of planning, dreaming and saving. They want it perfect and they want every new toy they’ve ever seen on
Bob Villa. These clients do not understand that what appears to be a very small changes to them, can lead to re-engineering and added expense.

Luckily, they have you, the contractor to help alleviate the urge to move walls seventeen feet in the opposite direction and flip the house 180 degrees on the lot.

The best way to deal with clients is let them know from the beginning…make as many changes as you want…before construction begins. That way you can accurately cost out the modifications and include them in the original contract price.

Your written contract should include a specific section on change orders. This section should be thoroughly explained to the client before signing. If, during the construction period, the client wants modifications performed, write these changes up as a separate change order, complete with added costs for materials and labor and have the client sign it. That way there are no unexpected surprises when the final bill is tallied.

Most people simply cannot afford everything they desire in a new home. Have the client make a list of must-haves; items which they absolutely do not want to part with. You as the project leader can help guide them into easier, less expensive alternatives and help prevent headaches for you and your crew down the road. Again, do as much of this on paper beforehand.

Communication is key. For example, a customer may rethink his request to move a wall if you explain to him or her that by doing so, an entirely new truss package must be manufactured (and paid for) on top of a new engineering report issued. Encourage your client to call you before they purchase that “good deal” at Home Depot. A client may have found an excellent bargain on a new gas cook top, but may not realize there is no gas line run to the kitchen because an electric stove was specified in the plans.
 
Remember, clients are looking to you not only for a quality product, but advice and guidance as well. It may be tempting to simply agree to the extra work, (and if the customer insists, by all means go ahead) but make sure the customer knows exactly what they’re asking for.

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