Dealing with resistant clients on change orders. How can you navigate additional costs effectively?

1 Clear Communication

Maintaining clear communication is essential when presenting change orders to clients. You must be transparent about the reasons for the changes, the associated costs, and how they will impact the project's timeline and outcome. Explain the necessity of the change order in simple terms and ensure that the client understands the benefits. If clients are resistant, listen to their concerns and be prepared to offer solutions or compromises that align with their priorities while still maintaining the integrity of the project.

2 Detailed Documentation

Thorough documentation is your ally when discussing change orders with clients. Before approaching the client, ensure every aspect of the change order is well-documented, including detailed descriptions, revised plans, and accurate cost estimates. This documentation not only supports your case but also provides a reference that can help prevent misunderstandings. Presenting a comprehensive record demonstrates professionalism and can help build trust with the client, making them more amenable to the necessary changes.

3 Justify Changes

When you encounter resistance, it's crucial to justify the need for the change order. Provide a clear explanation of why the change is unavoidable or beneficial in the long term. This could involve addressing safety concerns, regulatory requirements, or potential cost savings down the line. By linking the change order to tangible benefits or necessary compliance, you can help the client see the value in accepting the additional costs.

5 Negotiate Fairly

Negotiation is an integral part of managing change orders with resistant clients. Approach negotiations with a fair and reasonable stance, being willing to make concessions where possible without compromising the project's quality or safety. Remember, your goal is to reach an agreement that satisfies both parties. By negotiating in good faith and demonstrating a willingness to find a middle ground, you can often persuade clients to accept necessary changes.

6 Manage Expectations

Finally, managing client expectations throughout the project is vital for minimizing resistance to change orders. From the outset, educate clients about the potential for changes and additional costs. Regularly update them on the project's progress and any emerging issues that could lead to change orders. By setting realistic expectations and keeping clients informed, you can reduce the likelihood of resistance and ensure that any necessary changes are received with understanding.