How do you balance flexibility and fairness in change order negotiation?

2 Communicate clearly and promptly

The second step in change order negotiation is to communicate clearly and promptly with all the stakeholders involved. Change orders can affect the scope, quality, cost, and duration of the project, so it is important to keep everyone informed and updated. You should establish a formal and consistent communication process for change orders, such as using a standardized form, sending written notifications, holding regular meetings, and documenting all decisions and actions. You should also communicate the reasons, benefits, and risks of change orders, and seek feedback and input from the stakeholders.

3 Evaluate the impact and feasibility

The third step in change order negotiation is to evaluate the impact and feasibility of change orders. You should conduct a thorough analysis of how change orders will affect the project objectives, deliverables, resources, and risks. You should also consider the technical, operational, and legal feasibility of change orders, and identify any potential challenges or obstacles. You should present your findings and recommendations to the stakeholders, and explain the trade-offs and alternatives involved.

4 Negotiate the price and schedule

The fourth step in change order negotiation is to negotiate the price and schedule of change orders. You should use a fair and transparent method to determine the cost and time implications of change orders, such as using unit prices, lump sums, cost-plus, or time-and-materials. You should also consider the value and quality of the work, the market conditions, and the relationship with the other party. You should aim for a win-win outcome that satisfies both parties' interests and expectations, and avoid adversarial or aggressive tactics.

5 Document and implement

The fifth step in change order negotiation is to document and implement the change orders. You should prepare a written agreement that details the scope, price, schedule, and terms of change orders, and obtain the signatures of the authorized representatives of each party. You should also update the project plan, budget, schedule, and risk register accordingly, and communicate the changes to the project team and other stakeholders. You should monitor and control the implementation of change orders, and report on the progress and performance.

6 Learn and improve

The sixth and final step in change order negotiation is to learn and improve from the experience. You should conduct a post-mortem analysis of the change order process, and identify the strengths, weaknesses, opportunities, and threats. You should also solicit feedback and suggestions from the stakeholders, and evaluate their satisfaction and perception. You should document the lessons learned and best practices, and apply them to future projects and change orders.