- The important part to realize here is that when a client wants more work done a formal Change Order will help them understand that more work costs more money!
Managing each change through a formal Change Order helps manage expectations and sets out a fair and equitable relationship between you and your client.
Let’s start out by clarifying what a Change Order is. Many contractors and subcontractors start off by offering their services to friends, making verbal contracts, and performing great work while trusting that they’ll be paid.
Any modifications to the original project are discussed and verbally agreed without a fuss, and everyone walks away happy.
Right!! How often does it ever go that smoothly?
A change order is a document used to record an amendment to your original landscape construction contract. Change orders create a record of additional services being provided to your customer, along with pricing for those services.
A subcontractor that neglects to use change orders may forget to bill additional costs related to the changes requested or forget to complete the changes altogether.
A change order form has the following features:
- A revised scope of work – this could mean less work or more, but usually, the customer is asking for something in addition to what has already been agreed.
- Pricing for the new work.
- Any relevant modifications to the original contract that result from the new scope of work, for example, extending the delivery schedule for the project because the scope of work is now greater.
- The signatures of both the contractor and the customer.
The most important function of change orders is that they show the customer that getting more work done costs more money. Change orders were made to help you manage the customer that always wants more for less, and when combined with a detailed scope of work, you’ll have an easy time ensuring that both and your client are treated fairly.
Overall, just make it part of your standard operating procedures that anytime a client requests a change the request is communicated to the appropriate responsible person to create a change order and have the client sign off on the requested change.
Make sure everyone on the team buys in to that.
Sure, it’s going to add more admin work to your already heavy workload, but it will save an incredible number of headaches in the long run.
Additionally, your client will respect your level of professionalism and appreciate your careful attention to detail on their project.