Change orders are inevitable in construction projects, but they can also cause delays, cost overruns, and disputes. As a construction manager, you want to minimize the impact of change orders and manage them effectively. Here are some tips to help you reduce change orders and improve construction management.
One of the best ways to avoid change orders is to plan your project thoroughly and anticipate potential issues. You should involve all the stakeholders, such as owners, architects, engineers, contractors, and subcontractors, in the planning process and clarify their roles, expectations, and responsibilities. You should also review the design documents, specifications, and contracts carefully and identify any gaps, errors, or ambiguities. By doing so, you can reduce the chances of miscommunication, misunderstanding, or conflict that may lead to change orders.
Reducing change orders can be achieved through a variety of practices: - carefully reviewing design documents and making sure they are all integrated, - checking the quantities in the BOQ against industry norms, - involving the contractor as early as possible in the detailed design stage to ensure his collaboration, - clearly mentioning that all design documents are complementary in the construction contract.
Reducing change orders and improving construction management are critical objectives, Strategies to improve these are- 1. Explore opportunities for value engineering to optimize project costs without sacrificing quality or functionality. 2. Establish a formal change management process to document and evaluate proposed changes systematically. 3. Select contractors and subcontractors with a proven track record of delivering projects on time and within budget. 4. Conduct risk assessments to identify potential issues that could lead to change orders. 5. Establish open channels of communication among all project stakeholders, including owners, designers, contractors, and subcontractors.
The first and most crucial point in a construction project's change order reduction process is Risk Management. This involves conducting thorough risk review sessions, incorporating lessons learned from previous construction sites. One of my favorite actions following risk management sessions is updating the contract database to mitigate the most common causes while clarifying bottlenecks in our processes that lead to uncertainties.
Stakeholders working in silos can be one of the chief contributors to misunderstanding of scope that will inevitably lead to change orders. Bodies that manage multiple parties (ie Architects managing design team or General Contractors managing subcontractors) inherit the responsibility of making sure their managed parties are communicating and are reviewing each other's relevant material. Assumptions made by anyone need to be documented AND communicated AND parties need to be held accountable to reviewing each other's communicated assumptions. Very often are contractors/subcontractors vilified for change orders when really it was the lack of coordination between trades and/or design team that caused adds to the original scope.
At the beginning of the planning stage for the implementation of any project, we make on a project management plan, which includes the following: 1- Project scope, project Description. 2- Schedule management plan. 3- cost control plan (budget). 4-Procurement management plan. 5-risk management plan. 6-quality management plan. 7- Stakeholder engagement plan. All of these elements contribute to the success of the change order management plan and help reduce them significantly.
Another key factor to manage change orders is to communicate regularly and transparently with all the parties involved in the project. You should establish clear and consistent communication channels and protocols, such as meetings, reports, emails, or software tools, and update everyone on the project status, progress, and issues. You should also encourage feedback and input from the stakeholders and address any concerns or questions promptly. By doing so, you can foster trust, collaboration, and alignment among the project team and avoid surprises, disputes, or delays that may result from change orders.
In my opinion communication plays the most important role in Construction Projects. Whatever happens in a construction field is dependent on communication and best practices are adviseable, since as human beings we are relationship creatures and can't do nothing without communication in its various forms in the context of a project. Communication frequency and its channels is dependent on stakeholders needs and even project challenges and complexity. Adopting Project Management Information Systems is one of the best practices along with techniques such as constant feedback, which foster collaboration and support among teams members. This can reduce the number of potential change orders that can impact project progress, cost and quality.
In my opinion the change orders can be reduced by defining and freezing the scope properly at the initial phase of the project.
Market dynamics and sales prospective influence more changes in drawings . Customer requirements is pivotal in freezing the space planing . Flexibility in design shall accommodate all changes . Not impact much cost and time . At Schematic level all changes should be incorporated for further DD . All internal and external stakeholders should sign on GFC before releasing to Project . Design and build shall be good contracting mechanism to avoid change order in future until promoter instruct to changes . Robust Project management process will control and mitigate all change order risk . Any changes in drawing have major stake in pushing cost and budget Heywire
In my experience, consistent and transparent communication is critical for minimizing change orders on a construction project. I prioritize setting up regular status meetings with the owner, architect, contractor and subcontractors to identify issues early. Sending weekly email updates on schedule, budget and risks keeps everyone in the loop. An open-door policy encourages questions and feedback so small problems don't escalate. I use collaboration software to maintain a central repository of documents, plans and changes. Being proactive about communication helps align expectations, build trust between parties, and nip potential changes in the bud before they arise and throw the project into disarray.
Communication is a complex subject and one of the key factors leading not only to change orders but also to schedule deviations. One of the initial measures I implemented in my previous projects is a training program in contractual communication. This aims to ensure that resident engineers/site managers adjust their communication approach. For instance, when faced with a task that appears to be out of scope, instead of saying "go ahead and we'll sort out your costs later," they should say "could you confirm whether this point is within the original scope? If you believe it is not part of the signed contract, could you provide an estimate of its impact within a timeframe that allows us to proceed without delaying the work?
A third tip to reduce change orders is to document everything related to the project, especially the changes that occur during the execution phase. You should keep track of the scope, schedule, budget, and quality of the project and record any deviations, variations, or modifications that may affect them. You should also document the reasons, approvals, and impacts of any change orders and ensure that they are signed and agreed by all the relevant parties. By doing so, you can avoid confusion, ambiguity, or disagreement that may arise from change orders and protect your rights and interests in case of disputes or claims.
Managing communication goes hand in hand with document traceability, and it's also one of the focal points of my project management trainings. Operationally, in addition to training sessions, I strive to be present on-site regularly to ensure that project managers are properly copied on correspondences and that few, if any, matters are concluded solely via email.
It’s important to keep a running log of any changes that occur throughout the life of a project and make sure to immediately communicate those potential changes to your client before proceeding. Getting the clients approval on potential scope changes before you start will help reduce over budget projects.
Proper documentation is key for efficiency. As the project progresses, I diligently track any alterations or changes in RFI logs, meeting minutes, daily reports and change order forms. I require sign-off by all parties for each change before proceeding, to eliminate confusion. Maintaining organized project files with version control prevents disputes over evolving plans. I also regularly update cost/schedule impacts in the master budget and schedule to quantify changes. By comprehensively documenting the paper trail, I provide an audit trail on the intent and approval for changes. This protects me if disputes arise and minimizes surprises or disagreements over change orders down the road.
Documentar todo es importante, sobre todo cuando se necesita evidencia para solicitar el fiel cumplimiento de Términos de Referencia de un servicio a brindar o recibir, ya se con clientes o proveedores.
It is very necessary step. Because after some time only documentation can provide us a clear view of our achievement and shortcomings also.
A fourth tip to improve construction management is to evaluate the impact of any change orders on the project before implementing them. You should analyze how the change orders will affect the project objectives, deliverables, resources, and risks and weigh the benefits and costs of making the changes. You should also consider the alternatives and options that may achieve the same or similar results with less impact. By doing so, you can make informed and rational decisions and avoid unnecessary or excessive change orders that may compromise the project performance or quality.
A cost-benefit analysis (CBA) is particularly important when considering changes. While change is being identified and assessed: ? Identify and quantify the potential benefits of the change. This could include improved project functionality, reduced long-term maintenance costs, or enhanced safety features. ? Compare the total costs and benefits of the proposed change. If the benefits outweigh the costs, it may be justifiable. If not, reconsider the necessity of the change. ? Evaluate alternative solutions or options that might achieve the same objectives with lower costs. ? Assess any potential risks associated with the change, including uncertainties that could impact the estimated costs and benefits.
We consider alternatives that may meet the intent with less disruption. When a request comes in, I make sure to analyze the effects on the schedule, budget, scope, quality and safety of the project using risk assessment tools. I involve the project team to estimate costs, rework needed, resource requirements and timeline effects. If moving forward, I require a change order form with signatures from all stakeholders to document accountability. I then update plans, notify subcontractors, adjust budgets and schedules accordingly before implementing. By diligently assessing the ripple effects of changes, I can uphold the integrity of the project and avoid haphazard changes that degrade quality or bust the budget.
Having an issues log, a risk register, a change management process in place, along with permanent monitoring and Front-End Planning at the beginning of the projedt can help reduce change orders during subsequent phases. Considering uncertainties can bring positive and negative events during project life cycle, we need to be aware of them, register and evaluate the impact of change orders to project objectives and outcomes. The evaluation of the impact of any change orders will allow to take important decisions that reach project goals, outcomes and objectives.
Evaluar impactos con 4 simples pasos: 1. Detectar y prevenir 2. Métrica de Impacto y ejecución Plan de Resolución 3. Mitigar y Plan de Adecuación 4. Volver al paso 1.
A fifth tip to reduce change orders is to manage the change effectively and efficiently once it is approved and agreed. You should communicate the change order to all the project team members and stakeholders and ensure that they understand and follow the new requirements and expectations. You should also update the project plan, schedule, budget, and quality control accordingly and monitor the implementation and outcomes of the change order. You should also evaluate the results and feedback of the change order and learn from the experience and lessons. By doing so, you can ensure that the change order is executed smoothly and successfully and minimize the disruption or risk to the project.
I start by holding a meeting to brief the team and subcontractors on the details of the change and new expectations. I make sure to update all plans, schedules, budgets and specs to reflect the change. Regular status checks ensure proper implementation while avoiding ripple effects. For significant changes, I consider a pilot or staged rollout to test and refine before full deployment. Throughout, I monitor critical metrics like costs, delays and quality impacts versus the baseline. Lessons learned are captured to improve change management processes. By managing changes thoughtfully, I optimize construction workflows and outcomes when the unexpected occurs.
Well-defined procedures help maintain control, transparency, and collaboration throughout the change management process. Key steps are: ? Establish a clear process for identifying and documenting proposed changes. ? Conduct an initial review of the proposed change to assess its feasibility, impact on project objectives, and alignment with the contract documents. ? Evaluate the potential impact of the change on the project scope, schedule, and budget. ? Establish a clear approval process involving key stakeholders, such as the client, project manager, and relevant subcontractors. Also, clearly define the authority levels for approving changes. ? Monitor the implementation to ensure that the change is carried out as planned.
A sixth tip to improve construction management is to innovate and improve your processes and practices to reduce change orders and enhance your performance. You should adopt new technologies, methods, or tools that can help you plan, communicate, document, evaluate, and manage your projects more effectively and efficiently. You should also seek continuous improvement and feedback from your project team and stakeholders and identify the best practices and lessons learned from your projects. By doing so, you can increase your productivity, quality, and customer satisfaction and reduce your change orders and costs.
Pouca aten??o se dá muitas vezes às li??es aprendidas das falhas ou acertos de projetos anteriores. Um bom foco é investir em mecanismos, softwares ou formas de registrar e divulgar de fato o que já deu errado no passado e a??es para preven??o, e o que deu certo. Essa informa??o é de uma riqueza gigante é n?o é fácil chegar na base, e ser disseminada realmente. Esse um meio de fazer o feij?o com arroz bem feito, mas precisa abrir a mente pra inovar nesse tema.
We sometimes need to be flexible being creative and innovative in thinking of ways to reduce COs and still satisfy stakeholders. Best to place some CO thresholds while still putting up options and work around with the change requests.
Innovar es importante para el futuro, dado que formas de funcionamiento y organización en el presente tiene su fecha de caducidad. Sin embargo no todas las innovaciones darán resultado, entonces es mejor filtrarlas desde ahora, con ventaja. ?No? :D
From my experience, two things did help us reduce COs and improve CM: 1) Utilizing Building Information Modelling allowed us to identify clashes and discrepancies between the different disciplines in advance. 2) Engaging contractors and subcontractors early in the project planning process to leverage their expertise and insights.
Change orders arise for a number of reasons. Some are beyond control - such as unforeseen conditions. Most others can be minimized with a comprehensive understanding of the scope of work in the contract set of drawings. Elements that remain unclear at bid tender may be collated into exclusions, RFIs, and budgets, to be later negotiated. This is best done pre-tender. If you follow these simple strategies, you have already upgraded your construction manager's game significantly, provided more clarity in your contract, and protected your organization against errors and omissions.
Breaking down the unforseens. Lots of change orders occur due to unforseens. Can be down to parallel working of Planning and Design. Time constraints also sometimes make these happen. Its always better to breakdown every risk and challenge involved in construction. As narrow as you can get in planning construction and navigating the risks involved in construction, lesser would be the change orders.
La banque des le?ons apprises, c'est a dire noter toutes situations nouvelles, enjeux et réclamations survenues dans vos projets, identifier ceux avec des résultats positifs, identifier les points récurrents pour êtres capable des les anticiper dans la planification de vos projets.
Change orders on any project can be reduced by improving collaboration between team members earlier in a project’s development, increasing visibility among stakeholders to the information that could impact project cost and schedule, and implementing a tight process to manage change. Collaborative project management software greatly enhances your ability to manage cost, schedule and change, and as projects grow in size and complexity, it is the only way to efficiently execute these initiatives.