Your team and clients are clashing over change orders. How do you resolve this conflict?
When your team and clients clash over change orders, clear communication and proactive management are essential. Here's how to effectively address this issue:
How do you manage conflicts over change orders? Share your strategies.
Your team and clients are clashing over change orders. How do you resolve this conflict?
When your team and clients clash over change orders, clear communication and proactive management are essential. Here's how to effectively address this issue:
How do you manage conflicts over change orders? Share your strategies.
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One of the strategies I use when stakeholders are having a hard time resolving change orders is to figure out what is the root cause of the conflict. By doing so, all parties can start from the same framework and build from a level of understanding. It also helps to remind everyone involved of the goals of the project. If a teaming agreement or conflict resolution plan was created prior to the issue, those can be referenced as teams work together to get the change orders across the finish line.
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Change orders are either expected or unexpected. Their classification hinges on how well the contract's scope of work was defined and understood by bidders. Early open communication and collaborative discussions are crucial for resolving conflicts. Expected change orders are straightforward, as they reflect the shift from what was initially known to what is now known. It's vital to ensure fairness in discussions, recognizing that clashes often arise from initial misunderstandings or unrealistic changes in scope without adequate compensation. Avoid falling into the trap of "you take the good with the bad."
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COMMUNICATION!!! always communicate and keep all papertrails whether computer or hard paper. Layout the road to the change order, it's business after all.
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Managing conflicts over change orders needs clear scope, a proper process, and good communication. Help clients understand how changes affect time and cost, and involve them in decisions to avoid confusion. Use simple templates and tools to track and document changes. Work on solutions that meet client needs while keeping the project on track, and get help from others if needed. Staying proactive ensures clarity and reduces disagreements.
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Documenting everything officially from scratch by recording any new items have been changed contractually and in parallel as per contract agreement we should start change order on site and on each step official documents should be obtained So we can’t move to the next step pf change order without an official approval of the previous one and raising the difference contractually So we can in the last step a bundle of official approved documents can be commercially analyzed to get final prices of change over items
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If my team and the client are clashing over changes, it typically means that one or both parties don’t fully understand the changes. Conflict arises when everyone isn’t on the same page. The solution lies in having clearly defined contracts and plan specifications. With these in place, changes can be tracked and implemented smoothly through established procedures that account for adjustments in time, money, or contracts. It really comes down to ensuring that everyone understands what’s happening. Once the changes are clear and everyone is suitably compensated or reimbursed for their time and efforts, the project should return to normal operations without further issues.
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Set Expectations Early: From the start of a project, establish a clear change order process. Make sure clients understand how changes will be handled, including timelines, costs, and approval procedures. Document Everything: Always document any proposed changes, including the reasons for them. Be Transparent About Impact: When changes are requested, explain how they will affect the project’s scope, budget, and timeline. Use clear, non-technical language to ensure that the client fully understands the consequences of their decisions. Regular Check-Ins: Regular updates and discussions help prevent surprises and can address potential issues before they escalate. This keeps both the team and the client aligned throughout the project.
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The key here is maintaining constant communication and providing back up documentation. Some clients are trained to push back on change orders. A clear understanding of the scope by your team and the client at the start of the project will help in identifying variations down the road.
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Managing conflicts over change orders requires a structured, transparent approach. Start by clearly documenting the scope, reasons, and costs of the change order to ensure all parties have a shared understanding. Openly communicate the impact on timelines, budgets, and resources, emphasizing how the changes align with the project goals. Refer back to the original contract terms, which should outline the process for handling change orders, to maintain fairness and accountability. Encourage collaboration by involving stakeholders in discussions to find mutually acceptable solutions. Finally, resolve disputes proactively by addressing concerns early, fostering trust, and keeping the project moving forward.
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In the process we try to highlight prior to work that every job is an estimate. When not available, and a contract is a hard bid the key is not to charge in super competitive to lose ground, but instead cover your basis with a 30% to 40% overall additional base and let bad contracts work themselves out. If you cover your basis and leave high enough margins for those changes then it never becomes an issue. I would suggest reevaluate your estimators if your encountering this regularly as they havent hit the target.
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