Managing change orders is a crucial part of running a successful construction business. Change orders happen when the original plans for a project need to be altered. This can be due to unexpected issues, client requests, or other factors. Handling these changes well can keep your projects on track and your clients happy. Here are some simple steps to manage change orders effectively.
Clear Communication is Key
The first step in managing change orders is to make sure everyone is on the same page. When a change is needed, communicate clearly with your team and the client. Explain why the change is necessary and how it will impact the project. Good communication helps prevent misunderstandings and keeps the project running smoothly.
Document Everything
When a change is requested, document it in detail. This includes what the change is, why it’s needed, how it will be done, and how much it will cost. Having everything in writing helps avoid disputes later on. Use a standard change order form to keep all the information organized and easy to understand.
Get Approvals Before Starting
Before you start working on the change, make sure you have written approval from the client. This protects you if there are any disagreements about the change later. It also ensures that the client understands the costs and timeline associated with the change.
Update the Project Plan
Once a change order is approved, update your project plan to reflect the changes. This includes adjusting the schedule, budget, and any materials or labor needed. Keeping the project plan up to date helps you stay on track and avoid surprises down the line.
Track Costs and Time
Keep a close eye on the costs and time associated with change orders. This will help you stay within budget and on schedule. Use a system to track these changes so you can easily see their impact on the overall project.
Communicate Regularly with the Client
Keep the client informed about the progress of the change order. Regular updates help build trust and keep the client satisfied with your work. If any new issues arise, let the client know right away and discuss how to handle them.
Single Source of Truth
Build sites can get hectic. Throwing in change orders to the chaos can make it challenging for team members to understand what changes have been made or what decisions to follow. By having communication, documentation, reviews, and updates all in the same place, everyone on your team can look to a single source of truth for the building project. Not only does this limit potential errors and miscommunication, it has the bonus of building trust and transparency with your team and your clients.
Review and Learn
After the project is complete, review all the change orders to see what went well and what could be improved. Learning from each project helps you manage change orders more effectively in the future. It can also help you identify patterns and prevent similar changes from being needed on future projects.
Managing change orders effectively is essential for the success of your construction business. Clear communication, proper documentation, and careful planning can help you handle changes smoothly. By following these steps, you can keep your projects on track, your clients happy, and your business thriving.
Change orders are a normal part of construction. Handling them well shows your professionalism and helps build a positive reputation for your business.
Luckily, tools such as Digs, a collaboration platform built for construction professionals,, can significantly streamline the process of handling change orders, making it easier, faster, and more accurate. Here’s how:
Centralized Communication Hub
Digs provides a centralized platform where all stakeholders can communicate. This ensures that any discussions about change orders are documented and accessible to everyone involved. Get notifications in the project as well as through email, allowing you to reply without opening the project. The transparency and accessibility reduce misunderstandings and miscommunications.
Real-time Updates
With Digs, any changes made to the project can be updated in real-time. Builders and sub-contractors can immediately upload photos and files directly into the projects. This means that any changes will be reflected to all stakeholders, ensuring there is one single source of truth, limiting miscommunication errors and supporting transparency to all involved in the project. This real-time synchronization ensures that all team members are on the same page and can act promptly.
Mobile Accessibility
With mobile access, team members can handle change orders from anywhere. This mobility is particularly useful on construction sites where immediate decisions are often required. Team members can review, approve, or request changes on the go, ensuring that the project progresses without unnecessary delays. Digs is available on any device, supporting its ease of use.
By leveraging Digs for handling change orders, construction projects can benefit from improved communication, real-time updates, and on-the-go usage. These features collectively make managing change orders more efficient, accurate, and less time-consuming, ultimately contributing to the project’s overall success.
Digs is a collaboration software solution for home builders, vendors, and homeowners that provides more efficient file storage, collaboration, and homeowner handoff for home construction projects.
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