Change orders are
one of the messiest
areas in all of construction.
They can be
financial and scheduling
disasters, and are
also a common area of
litigation between
builders and owners.
I've learned from hard
experience that without
some kind of
change-order system,
you'll end up working
for free (see "Learning
the Hard Way," page
36). Every builder
should develop a system
to overcome the
obstacles posed by
change orders and
turn them into profit
and referral-making
opportunities.
I'm a design/builder,
and I've refined my
change-order system
to fit the way I do business.
The guiding
principles are to minimize
the number of
change orders by planning
carefully in the
design stage, and then
handling any changes
that do come up with
standardized procedures
and forms.
Plan Ahead
In general, my
advice is to try to
avoid change orders if
you can.