How can you negotiate change orders with unions or labor organizations effectively?

1 Understand the contract

The first step is to understand the terms and conditions of the contract that you have signed with the union or labor organization. This will help you to identify the scope of work, the payment schedule, the change order process, and the dispute resolution mechanism. You should also review the collective bargaining agreement (CBA) that governs the wages, benefits, and working conditions of the unionized workers. The CBA may have clauses that affect the change order negotiation, such as the right to refuse work, the overtime rates, and the grievance procedure.

2 Communicate early and often

The second step is to communicate early and often with the union or labor organization representatives about any potential or actual changes in the project. You should inform them about the reasons, the impacts, and the alternatives for the change order, and seek their input and feedback. You should also document all the communication in writing, and use clear and respectful language. Communication is key to building trust and cooperation, and to avoiding misunderstandings and surprises.

4 Document the agreement

The fourth step is to document the agreement that you have reached with the union or labor organization representatives about the change order. You should write a detailed and accurate change order form that specifies the changes in the scope, schedule, budget, and quality of the project, and the adjustments in the payment, the resources, and the risks. You should also include any contingencies, exclusions, or assumptions that may affect the implementation of the change order. You should obtain the signatures of both parties, and distribute copies of the change order form to all relevant stakeholders.

5 Implement the change order

The fifth step is to implement the change order according to the agreement that you have reached with the union or labor organization representatives. You should coordinate with the project team, the subcontractors, the suppliers, and the clients to ensure that the change order is executed smoothly and efficiently. You should also monitor and control the performance, the quality, and the safety of the project, and report any issues or deviations to the union or labor organization representatives. You should also update the project plan, the schedule, the budget, and the risk register to reflect the change order.

6 Evaluate the results

The sixth step is to evaluate the results of the change order with the union or labor organization representatives. You should review the outcomes, the benefits, and the costs of the change order, and compare them with the original plan and the expectations. You should also solicit feedback and lessons learned from both parties, and identify the strengths and weaknesses of the change order process. You should also celebrate the achievements and recognize the contributions of both parties, and maintain a positive and professional relationship for future collaboration.

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?