Change orders can make construction projects hard. One fact is, good change order management keeps a project on track. This guide will show you how to handle change orders well. Keep reading for easy steps.
Key Takeaways
- Change orders are common in construction and need clear management to keep projects on track.
- A good process includes reviewing contracts, creating requests, reaching agreements, getting approvals, and using a log for tracking.
- Clear communication is crucial at all steps to make sure everyone understands the changes and their effects on time and cost.
- Documenting every change order helps avoid disputes later by keeping exact records of what was agreed upon.
- Using a change order log or software makes it easier to manage changes and keeps the whole team updated.
The Importance of Effective Change Order Management in Construction Projects
Effective change order management is key in construction projects. It helps control the project scope and keeps everything on track. Changes can happen for many reasons, like new design requests or unexpected site conditions.
When these changes come up, clear communication is vital. All parties must understand what the change means and how it affects time and cost.
Good change order practices protect everyone involved. They ensure that electricians and tradesmen know their roles during a shift in plans. Documenting every request makes it easier to track costs and keep records straight.
This way, there are fewer disputes later on about who agreed to what.
Proper management of change orders saves both time and money in any construction project.
The 5 Steps to Effective Change Order Management
Change order management is key to a successful construction project. It helps teams adjust plans and stay on track with costs and timelines.
Review the Contract and Identify the Reason for the Change Order
Reviewing the contract is the first step in change order management. Look closely at what was agreed upon. Find out why a change order is needed. A reason could be new work, unexpected conditions, or design changes.
Each reason should relate back to the terms of the original contract.
Identifying the cause helps keep everything clear and on track. It sets up good communication with your team and clients. This keeps everyone informed about project goals and expectations.
Understanding these details will help you manage costs and time better in construction projects.
Create a Change Order Request
A Change Order Request is a key document in construction projects. It explains why changes are needed and what they involve. Start by writing down the reason for the change. Clearly state what work needs to be added, removed, or changed.
Keep it simple and precise.
Include important details like costs and time impacts. Use a Change Order Document Template to help organize this information well. Once you have your request ready, share it with your team for review.
This step sets the stage for negotiation about the change order proposal that comes next.
Reach an Agreement About the Change Order Proposal
After you create a change order request, the next step is to reach an agreement about the change order proposal. This means discussing the proposed changes with all involved parties.
Clear communication is key during this process.
Talk openly about the reasons for the change and its effects on cost and time management. Ensure everyone understands what each change means. Use your change order management system to help keep track of these discussions.
Aim for a solution that works for all sides before moving forward with approvals.
Get Approval on the Change Order and Adjust the Contract
Getting approval on the change order is a key step in the process. Present the change order request to all parties involved. This includes your client and any relevant contractors.
Once everyone agrees, you can move forward.
Next, adjust the contract to reflect these changes. Update cost tracking records and liability records as needed. Ensure that all changes are documented clearly. Use a change order log for better communication and tracking throughout the construction project.
Clear records help avoid confusion later on in the construction process.
Use a Change Order Log to Keep Track of Change Orders
A Change Order Log is vital for keeping track of changes in a construction project. It helps you see what has changed and why. Each entry should include the date, details of the change, who approved it, and any cost impacts.
This log keeps everything organized.
Using a Change Order Log also aids in communication among team members. Everyone can look at the same information and stay informed about changes. Change order tracking software makes this easier by storing all data in one place.
With clear documentation, you protect yourself from disputes later on and streamline your change management process.
