Let's say you have a client that wants to add something to his project. You follow their wishes, and then invoice them. They weren't expecting the increase of cost, resulting in both parties being unhappy. They gripe, ?I wouldn't have done it if I knew how much it would have cost.?
So, a change order protects you, and perhaps at the time the customer thinks the extra paperwork is a hassle- in the long run you look very professional. If your customer wants to make a change to the project, the first thing to do is gather the existing specifications and estimates. This will show the client that the current price reflects the current specifications. Sounds simple and obvious, but it needs to be shown.
The next step is to gather the new specifications, and then create a change order immediately. Once you forward the change order to them, it is very important not to do any work until your customer signs it, or the scenario listed above is likely to happen. No matter how much you trust your customer, do not listen when they say, ?I don't care about a change order,
just go ahead!?
If your customer is unsure about signing off on a change order, explain the need for it. Let them know how this will update the price- materials and labor. They will receive a copy of the change order to add to their contract, and they will be able to see the explaination of the cost increase. If you simply invoice them for more, even though they know the additional work
was done, the change order says it in black and white.
Perhaps a change order does not result in a price increase for some reason. Even still, one should be made and signed off on. It is still a change and/or extension of the contract.
On a final note, change orders are not just good for the client, but also for you. If you find that you are making quite a few change orders on every project you are doing, chances are there are some things being missed during the design stage. You can take this as an opportunity to better finalize contracts before beginning. Perhaps there are too many uncertainties between customer and contractor before the work begins.
If you work out all the details before you start the project, you'll be more able to follow the project specifications through to completion of the job..
Mauinick has sinced written about articles on various topics from Personal Desktop, Phone Cards and Legal Matters. Nick Hurd is the developer of LiteningFast Estimating . Mauinick's top article generates over 4400 views. to your Favourites.
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