Change orders are a necessary part of any large construction project, but they can also cause delays and cost overruns if not managed properly. The key to successful change order management is understanding the impact of changes on your overall project timeline and budget.
What Are Change Orders?
Change orders are defined as any modifications to the scope of work that are not included in the initial contract agreement. These changes can range from minor alterations to major adjustments and can involve anything from material specifications to labor costs. Common examples of change orders include requests for additional materials, upgrades to existing features, or extensions on deadlines.
How to Handle Change Orders
Change orders must be managed carefully because they can cause delays and cost overruns if not handled correctly. For example, if a change order adds labor requirements that were not included in the initial contract agreement, additional time will need to be allotted for those tasks and new subcontractors may need to be hired. This could lead to an increase in labor costs, which would put the project over budget.
Review Changes
To ensure that change orders don’t derail your project, it’s important to have a clear understanding of their scope and impact on the overall timeline and budget. This includes keeping detailed records of all change orders, including when they were requested and what changes were made. It is also helpful to review any past change orders and identify any potential areas of risk or cost savings opportunities.
Create a Plan
Once the scope of a change order has been defined, it’s important to create a plan for implementing it. This includes outlining any additional tasks or resources that will be needed and allocating responsibility for each element. Additionally, the timeline should be estimated based on the complexity of the change order and any potential delays.
Communication Is Key
Finally, communication is key when dealing with change orders. All stakeholders should be kept informed at every step of the process, from initial submission to implementation. This will help ensure that everyone is on the same page and that any issues or concerns can be addressed promptly.
By following these tips, you can make sure that change orders are managed effectively and minimize their impact on your construction project timeline and budget. With careful planning and effective communication, you ensure that your project runs smoothly from start to finish. If you need financing to keep your construction projects on track, contact the team at
Change orders are a necessary part of any large construction project, but they can also cause delays and cost overruns if not managed properly. The key to successful change order management is understanding the impact of changes on your overall project timeline and budget.
What Are Change Orders?
Change orders are defined as any modifications to the scope of work that are not included in the initial contract agreement. These changes can range from minor alterations to major adjustments and can involve anything from material specifications to labor costs. Common examples of change orders include requests for additional materials, upgrades to existing features, or extensions on deadlines.
How to Handle Change Orders
Change orders must be managed carefully because they can cause delays and cost overruns if not handled correctly. For example, if a change order adds labor requirements that were not included in the initial contract agreement, additional time will need to be allotted for those tasks and new subcontractors may need to be hired. This could lead to an increase in labor costs, which would put the project over budget.
Review Changes
To ensure that change orders don’t derail your project, it’s important to have a clear understanding of their scope and impact on the overall timeline and budget. This includes keeping detailed records of all change orders, including when they were requested and what changes were made. It is also helpful to review any past change orders and identify any potential areas of risk or cost savings opportunities.
Create a Plan
Once the scope of a change order has been defined, it’s important to create a plan for implementing it. This includes outlining any additional tasks or resources that will be needed and allocating responsibility for each element. Additionally, the timeline should be estimated based on the complexity of the change order and any potential delays.
Communication Is Key
Finally, communication is key when dealing with change orders. All stakeholders should be kept informed at every step of the process, from initial submission to implementation. This will help ensure that everyone is on the same page and that any issues or concerns can be addressed promptly.
By following these tips, you can make sure that change orders are managed effectively and minimize their impact on your construction project timeline and budget. With careful planning and effective communication, you ensure that your project runs smoothly from start to finish. If you need financing to keep your construction projects on track, contact the team at Private Client Capital Partners today.