Change is bound to happen, especially in the construction industry. It’s a fact that complex projects often require adjustments. But don’t let change orders become a burden for you when building a custom home.
By effectively managing them through smart strategies, a contractor can make your project more profitable and organized.
Instead of getting frustrated every time a change order arises, a contractor should view it as an opportunity to increase their earnings and enhance their reputation as a builder who is easy to work with. It’s time to turn change into a positive thing.
You don’t need to be a rocket scientist to achieve this. You just need to implement the right processes, and it all begins with a change order.
So, what exactly is a change order in a new home construction? It’s a document that records any modifications made to the original project scope, such as changes in design, materials, or labor. Change orders help manage requested changes that may arise during construction and outline the associated costs and time implications. These changes require approval from all parties involved before they can be implemented.
Change orders can occur for various reasons, like unforeseen site conditions, client requests, or design changes that affect the original plan. While change orders are necessary for project success, they can also lead to increased costs, delays, and disruptions if not managed effectively.
That’s why it’s crucial that custom home builders have a proper change order process in place, which includes clear communication, documentation, and approval procedures. Construction change order software can streamline the new home building process, making it more efficient and saving you time and money in the long run.
Let’s take an example to understand this better. Imagine you’re constructing your dream home. During the framing stage, the contractor realizes that the original design won’t work due to structural limitations. To ensure the project’s safety and stability, they need to modify the framing plans. This modification requires a change order that outlines the new plans, material costs, and the time implications of the change.
Before implementing the modifications, the change order must be approved by all parties involved, including the client, architect, and other stakeholders. Once approved, the change order becomes part of the original contract, and any further amendments would require additional change orders.
This example emphasizes the importance of managing change orders effectively to avoid additional costs, delays, and disruptions in completing the project.
Now, let’s go through the steps involved in the construction change order process:
1. Start with the contract: The process begins with the original contract between the general contractor and the client. Review the contract terms carefully, paying attention to clauses related to change orders, before signing the agreement.
2. Review the project plan: Thoroughly review the construction plan and specifications to identify any scope errors, omissions, or ambiguities.
3. Respond promptly to change orders: Address change orders promptly to avoid additional costs and time spent on dealing with them.
4. Meet with all involved parties: Schedule a meeting with the contractor and the owner to discuss the change order, agree on the cost, and assess its impact on the schedule.
5. Further negotiations: In some cases, negotiations may be necessary before proceeding with the change order.
6. Document everything: Clear documentation of the construction change order process is essential to prevent disputes and keep the Myrtle Beach custom home project progressing smoothly. You need to document the changer as well as the contractor.
To effectively manage construction change orders for your custom home, follow these eight best practices:
1. Communicate clearly and promptly
Don’t delay communicating about change orders. You contractor should inform you as changes occur to avoid surprises and maintain transparency.
2. Obtain signatures and document everything
Ensure you have your clients’ approval in writing for each change order. Document all changes, scope of work, and costs to avoid disputes.
3. Clarify the process from the beginning
Be proactive and transparent about change orders in the initial contract. Educate clients about the change order workflow and provide examples to set their expectations.
4. Use construction software to streamline processes
Leverage technology to create and deliver change orders, capture electronic signatures, and manage documentation efficiently.
5. Set clear expectations
Inform clients from the start that change orders are common in construction projects and may lead to added costs or delays. Specify the change order process in the contract and provide a clear explanation.
6. Calculate potential costs carefully
Assess the scope of work, materials, labor costs, and additional expenses associated with a change order. Communicate potential costs transparently to clients.
7. Document everything in writing
Avoid misunderstandings and disputes by documenting all change order details, including work scope, costs, and timeline adjustments. Keep a copy for your records and ensure both parties sign off on the change order.
8. Track changes in real-time
Document approved change orders and track them throughout the project. Real-time tracking helps identify issues and take corrective action promptly.
Building a custom home is an involved process that requires experience. Changes will happen. Hire a custom home builder like Dawol homes you can trust.
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Dawol Homes
9404 Hwy 17 Bypass,
Murrells Inlet, SC 29576
(843) 294-2859
Dawol Homes Sales Office
3100 Dick Pond Rd # E
Myrtle Beach, SC 29588
843-294-2859
We build homes in: Cypress River Plantation, Waterway Palms, Waterbridge, Murrells Inlet, Collins Creek, Bellwood Landing, Carolina Forest, Plantation Lakes, North Myrtle Beach, Socastee, Surfside Beach, Pawleys Island, Litchfield Plantation