Psychology of Change Orders

Psychology of Change Orders

A successful business is not necessarily the one with the most creative ideas. It is the company that has cultures that encourage and reward its constituents.

As the old saying goes, “Change is inevitable”. As with construction projects, the most appropriate statement would be “Change orders are inevitable”. A change order is simply a work that is added, modified or removed from the original scope of work of a contract, a document used to record any amendment to the original construction contract. It is a vitally important tool for contractors. A change order alters essential information such as the original contract and/or completion date. Moreover, it is simply an addendum, correction or amendment to the original construction contract and its scope of work.

The most indispensable function of construction change order shows the client that additional work done entails additional expenses. Change orders help contractors in managing client specifications and demands

Implementing a disciplined and effective change order process can help contractors improve profitability, achieve target and safeguard their reputation and credibility. However, when change orders are handled ineffectively, a loss in profitability and an unfavorable relationship between the contractors and clients normally arise. It can quickly derail the success of a project.

Managing expectation is the most crucial aspect of a change order process. Always discuss the whole process in advance with the client. This way, the aspect of transparency will be met. An effective change order process will help contractors manage their relationship with customers and make the business more professional and more procedure-oriented when it comes to the monetary aspect of the project. Being able to effectively manage change order doesn’t have to be difficult as it only takes a little preparation, understanding and a large amount of communication with all that are involved in the project.

Change orders are made to help contractors manage their customers who always want more for less. Combined with a detailed scope of work, a beneficial outcome between both parties is expected. These requests for changes can be awkward if the contractors fail to manage expectation right from the beginning.

Sadly, change orders will happen at some point in some projects, and the worst thing contractors can do is to be ill-prepared when it happens. Instead of being defensive and unmindful, they should be ready to face potential changes. With a sound mind and positive approach, the frustrations will be reduced resulting in more favorable results

Having a change order process in place allows contractors to efficiently identify the need for change order and manage them when they arise. Since change orders are an inevitable part of working in the construction industry, it is imperative that they have to deal with them at some point in a particular project and will continue to deal with them on future projects. Aside from its importance for proper documentation, change orders are vital in managing the expectation of customers.

Embrace changes, anticipate its potential and be able to work more efficiently in the event of the unexpected.

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