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Using Change Orders - A Guide For Contractors

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If a customer wants to add something to their project. You follow their wishes, and then invoice them. They did not expect 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- but in the long run, you look very professional. Let's say that they want to make a change to the project, the first step you need 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.

So, the next step is to gather the new specifications, and then initiate a change order immediately. Once you forward the change order to your customer, it is very important not to do any work until your customer signs it, or the scenario listed above may well 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 client is wary of signing off on a change order, detail the need for it. Let them know how this will modify the price- materials and labor. They will have a copy of the change order to add to their contract, and they will be able to see the reason for the price change. 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 have any effect 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.

You can follow the job specifications through completion of the project if you iron out all the details before you start the job.
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