Are You A WIMP?

[Cole]

http://www.designbuildbusiness.com/COLUMNS/BUSINESS-OF-DESIGN-BUILD/2003/07-2003-Business-of-Design-Build-Hedley.asp

[Mike Finley]

I see not getting change orders as a symptom of the problem, not the actual problem itself.

The problem is amplified when a contractor's personality leans more towards the doer end of the spectrum. He loves the building part of the job, but regards the paperwork and business side of the job as a nuisance. People naturally gravitate towards the path of least resistance, it is so much easier to justify and rationalize the extra work (be the doer) rather than have to do what is percieved as the harder part (do business) and get a change order.

If the contractor is more business person than construction worker, the change orders are easy to come by, doing the work on the change order is considered the harder part.

If you are a one man shop, trying to grow the business person in you over the doer will make you more money in the long run.

This is exactly why so many successful businesses started with 2 people. One is a great technician and the other is a great salesperson or business person. Microsoft ring a bell? One guy manages the work, the other guy manages the business/selling. That is an unbeatable combination. The more you can emulate that personally the better off you will be.

My 3 cents.

[Rich]

Well said Cole and Mike.
My philosophy on change orders is keeping them to a minimum (as I'm sure most everyones is) - but not because I have difficulty doing the work needed to create a change order but because I feel change orders come about because there wasn't enough planning ahead of time.
IMO change orders are almost predetermined all the way back when creating the estimate. These can be minimized by using a document like instructions to bidders and working with the owner on specifications.
The value of work in change orders is next to nothing for a contractor.

[Cole]

My philosophy on change orders is keeping them to a minimum (as I'm sure most everyones is) - but not because I have difficulty doing the work needed to create a change order but because I feel change orders come about because there wasn't enough planning ahead of time.


I totall agree 100% with you and Mike.

[Rich]

But - if there is a change in scope - by god you better get it documented :)

[Flimmer]

One way to prevent an overabundance of change orders is to charge alot more for the change order than you would normally charge..

For one a change during the project costs you more money(delivery of materials, delays for orders to come in, etc., etc.) But if you are going to do this extra work that was not planned and the customer has a pattern of changing things during the project. I'm going to make up some profit for the hassles the company has to deal with.. Plus this can delay you for the next job in line..

I do agree that planning can eliminate some of these changes. But there are alot of THOSE people out there that think that they are the only customer you have, thankfully that is not true..

Oh, and the change order documentation has burned me more than once before. Write it down immediately, or you will get sidetracked and forget.
That Sucks!
Flimmer