Don’t Sweat The Change Order: The Detours During a Custom Home Build And How to Handle Them
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By Bob Hoebeke
President, Hoebeke Builders
“Grrrrrr … I had no idea it would turn out looking like THAT!” With so many moving parts on a building project, no one can imagine exactly what the end result is going to look like. The only thing constant is change, so don’t sweat, we’ll write up a Change Order and everyone will live happily ever after.
But wait, it’s disillusioning to have spent so much time organizing, cataloging, measuring and selecting a team (architect, builder, interior designer, and landscape architect), only to stumble on a few items less than desirable.
Assuredly, your efforts are not in vain — if you are struggling over only a few things not totally meeting your expectations, think of the poor family who didn’t do their homework or build their team and has lots of changes to make. They’re now is begging for a “do-over!”
The Change Game
To be clear, before you and your team got up from the design table, everyone agreed on the Scope of Work for your project. That particular moment was memorialized in a building contract. So, from that moment forward, anything not included in the original scope of work is a change. While the entire team should be advised of any change, the builder is the right entity to keep up with any plan, and document deviations, and communicate the change to the group.
The object of the change game is to keep everyone informed so each team member can respond with how the change affects them.
For example, the builder has just framed your home and you realize a wonderful opportunity to take advantage of a small, cozy area right off the kitchen. How perfect for a morning cup of coffee and a scone! How much more perfect would it be with a window to look out?
With the team informed of your desire to add a window: the architect should change his plans to reflect the “as-built” design; the interior designer should recognize the need for a new table, chairs, and window covering; and the landscape architect needs to alter his/her plans to add a wonderful garden right outside.
Since most ideas for a change are usually given to the builder, he should be the first one to record the change by calculating the cost of window, trim, labor, and time necessary to complete the addition. Similarly, every team member, all operating under different service contracts, should make similar provisions. If your team is functioning seamlessly, every discipline should have picked up on the change and immediately started making accommodations for the addition of a window.
A simple system capturing the change should be clear, concise, and very easy to catalog. Ideally, the change should show up in multiple formats like the weekly report, monthly Change Order manifest, and cost reports, highlighted for easy identification. Encourage your team to “over-communicate” project changes.
Sometimes, because of the volume of changes, it’s way too easy to lose track of all of the changes made. The overall effect can be overwhelming. Simple, and straightforward communication is always the best policy.
Cataloging Changes
Three ways to catalog changes to create a sufficient paper trail so no one gets confused.
The standard “Change Order” is generated by the owner and issued to the builder for pricing, and time delay calculations.
A “Field Authorization” puts the monkey on the builder’s back to complete, echoing back to the owner what was discussed, the cost of the change, and the required time delay.
Candidly, most changes today are accomplished by “Verbal Command” either on-site; through text; or in an email. While easiest, unless properly documented through a team email immediately after being issued, a verbal command can also lead to big misunderstandings.
Time does not heal the memory like having it written on a piece of paper. Most likely, your contract for construction will be specific on exact requirements for making changes.
Hide and watch, but the journey to project completion is filled with many re-routes. It’s not that you didn’t plan — initial plans on paper were really good — but once a good idea became reality, you saw a way to make it better!
Next time we’ll discuss the selection process, and a funny little thing called “buyer’s remorse.”
From, developing a “Lifestyle Inventory,” to building and monitoring your Project Team, Hoebeke Builders Consulting Services has all the tools necessary to dramatically increase your project’s efficiency, while decreasing your project’s cost! www.hoebekebuilders.com
