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How can you improve stakeholder communication to reduce change order disputes?

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Change orders are inevitable in any construction project, but they can also lead to disputes, delays, and cost overruns if not managed properly. Communication is the key to avoiding or resolving these conflicts, but how can you improve it among the various stakeholders involved? In this article, you will learn some practical tips and best practices to enhance your communication skills and strategies in construction management.

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1 Identify your stakeholders

The first step to improving communication is to identify who your stakeholders are and what their roles, expectations, and interests are in the project. Stakeholders can include owners, architects, engineers, contractors, subcontractors, suppliers, consultants, regulators, and end-users. You should map out the relationships and interactions among these parties and establish clear lines of communication and responsibility. You should also understand their communication preferences, such as frequency, format, and channel.

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Gorti Jogarao

General Manager -Cost control & Audit at GBH International Contracting LLC
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For the stakeholders information in my view monthly we provide one information sheet jobs on hand Billing and work completed Disputes if any corporate like, DM, camp facilities labor information RTA, RERA. Tender information Struck or positions or discounts etc

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Khaled Daher

Railway Installation General Manager @ CAF | Smart cities management lecturer | Smart Mobility Expert
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Identify and map stakeholders is an important step as this will enable us to an effective plan, communicate with relevant parties and to know who to contact with specific questions or concerns for our project. We have an internal stakeholder which are people within our organisation and company involved with the project. External stakeholders who is people doesn't directly impact include people and organisation.

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Ana Maria Fernandez Prada A. ????

Bilingual Senior Contracts Specialist | Consultant | Administrator | Coordinator | Senior Bilingual Secretary | English & Life Mentor | Driving Results through Build Trust & Collaboration
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You should involve all the relevant stakeholders, such as?the owner, the contractor, the designer, the subcontractors, and the suppliers, in the change order discussions and negotiations. You should also keep them informed of any updates, issues, or decisions related to the change order.

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Peter Cholakis

Improve facilities repair, renovation, maintenance, and new build outcomes and reduce costs
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A robust approach that enables sustainable outcomes for all... #1. Owner leadership, competence, commitment, & accountability. #2 A robust systems-thinking base process integrating Planning, Procurement, and Project Delivery Teams #3 A common data environment includes standardized terms, definitions, data architectures, and granular, current, and objective locally researched construction task data. #4 Quantitative metrics... 4bt.us

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2 Establish a communication plan

A communication plan is a document that outlines the objectives, methods, tools, and protocols for communicating with your stakeholders throughout the project lifecycle. It should specify what information needs to be communicated, when, how, and by whom. It should also define the escalation process, the feedback mechanism, and the documentation requirements. A communication plan can help you align your stakeholders' expectations, avoid misunderstandings, and ensure transparency and accountability.

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German Valencia

Owner's Representative | Leading Project Success from Concept to Completion | 20+ Years of Expertise in Value-Driven Construction & Technology Innovation
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Channeling communication is the number one principle for success in construction management. Email offers one of the best suites to channel communication by creating emails threads that relate to a specific subject and where relevance can be paramount for everyone involved. The ‘To:’, ‘Cc:’, and ‘Bcc:’ enable to allocate who is responsible to take action; who is part of the process and requires the information to take note, follow up, or pitch in; and it enable to include stakeholders that are not involved in the process but who should be informed to understand that decisions being taken are according to plans (C-manager, owners, etc.) Email is the tool and it is the project manager duty to steer communication in the right direction

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3 Use appropriate communication tools

There are many communication tools available for construction management, such as email, phone, video conferencing, instant messaging, project management software, and cloud-based platforms. You should choose the tools that suit your project's needs, budget, and complexity, and that are accessible and reliable for your stakeholders. You should also use the tools consistently and effectively, following the communication plan and the best practices for each tool. For example, you should use email for formal and official communication, video conferencing for meetings that require visual aids and collaboration, and instant messaging for quick and informal updates.

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4 Communicate change orders clearly and promptly

Change orders are changes to the original scope, schedule, or budget of the project that are requested or approved by the owner or the contractor. They can have significant impacts on the project's performance and outcome, so they need to be communicated clearly and promptly to all relevant stakeholders. You should use a standard change order form that includes the description, justification, cost, time, and quality implications of the change, as well as the approval process and signatures. You should also communicate the change order verbally or in writing to the affected parties and explain the rationale and benefits of the change.

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Bryan Mower
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A verbal instruction never happened. Make sure it is recorded in writing and acknowledged. If a change results from the instruction, you need to raise it as early as possible. Many changes don't result in a variation but they need to be recorded for posterity and it's a good habit to get into. Communication is key when it comes to change and disputes can often be resolved quickly and easily without upsetting any relationships. Leave it to fester and it will likely come-back to bite-you in the future.

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5 Listen and respond to feedback

Communication is a two-way process that involves listening and responding to feedback from your stakeholders. Feedback can help you identify and address issues, concerns, or suggestions that may arise during the project. You should encourage and welcome feedback from your stakeholders and acknowledge their input. You should also respond to feedback in a timely, respectful, and constructive manner, providing clarification, explanation, or resolution as needed. You should also document and track the feedback and the actions taken to address it.

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6 Monitor and evaluate communication

The last step to improving communication is to monitor and evaluate its effectiveness and impact on the project. You should measure and track the communication activities and outcomes using indicators such as frequency, quality, satisfaction, and feedback. You should also solicit and analyze feedback from your stakeholders on the communication process and performance. You should use the results to identify and address any gaps, challenges, or opportunities for improvement. You should also celebrate and share the successes and best practices of communication with your stakeholders.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you improve stakeholder communication to reduce change order disputes?

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1 Identify your stakeholders

2 Establish a communication plan

3 Use appropriate communication tools

4 Communicate change orders clearly and promptly

5 Listen and respond to feedback

6 Monitor and evaluate communication

7 Here’s what else to consider

Construction Management

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