Strategies for Minimizing Change Orders, Unforeseen Costs, and Delays When Collaborating with Your Contractor
Contractors often face inquiries about how to steer clear of change orders, additional expenses, and project delays. Addressing these concerns effectively is crucial to ensure a successful construction project. In this guide, we’ll break down each issue separately, explore their causes, and provide practical solutions to help you navigate these challenges.
Positive Points:
1. Avoiding Change Orders:
Change orders can disrupt project timelines and inflate costs. To minimize them, consider the following strategies:
- Comprehensive Drawings: Begin with detailed, complete drawings, including any revisions or “red lines.” Review the plans with your designer to confirm that all your specifications are accurately represented.
- Design-Build Approach: Engage a design-build company to streamline decision-making and reduce the likelihood of change orders. This integrated approach ensures that the builder and designer work closely together.
- Clear Scope of Work: Request a detailed scope of work from your contractor that outlines the materials, labor, exclusions, and owner responsibilities. This document can accompany initial bids, facilitating accurate cost comparisons.
- Selection Sheet: Create a selection sheet early in the process to lock in fixtures, lighting, and flooring choices, which can help solidify the contract price and prevent budget overruns.
- Self-Control: Stay within your budget to prevent change orders. If you wish to make changes or upgrades, consider adjusting expenses in other areas to offset the additional costs.
2. Avoiding Unforeseen Costs:
Unforeseen costs, also known as unforeseen conditions (U/C), can arise during remodeling or new construction. To minimize them, consider these steps:
- Home Inspection: Thoroughly inspect your home for potential issues and make note of them to discuss with prospective contractors.
- Structural Engineer: Hire a structural engineer to assess visible concerns such as rot, sagging floors, or other structural issues.
- Investigation of Concealed Damage: In cases of water damage, rot, or structural issues, consider removing cladding or sheetrock to assess the extent of damage. Address these issues as part of the remodel.
- Environmental Testing: For new home construction, particularly in areas with poor soil conditions, conduct environmental testing like digging test pits or core samples to evaluate the soil quality.
- Plan Review: Review plans with the architect, structural engineer, and general contractor before or during the permitting stage to ensure plan accuracy.
- Budget Review: Before construction begins, review the budget to accommodate weather-related contingencies and changes in material costs.
3. Preventing Delays:
Delays can be costly and disrupt project timelines. To minimize them, consider the following strategies:
- Weather Planning: Be mindful of weather conditions, especially during the vulnerable early construction phases. Plan to work during breaks in inclement weather and account for weather-related delays in your project schedule.
- Just-In-Time Scheduling: Implement a just-in-time scheduling approach, allowing flexibility in the project schedule to accommodate subcontractor availability.
- Material Lead Times: Understand material lead times and ensure timely procurement of materials to prevent delays and avoid additional costs.
- Selection Sheet: Complete the selection sheet before the project begins to identify and address potential long lead times for materials like windows, doors, cabinets, and flooring.
- Project Schedule: Develop and maintain a project schedule from the project’s outset, ensuring it’s updated regularly to track progress and adapt to unforeseen delays.
In Conclusion: While it may not be possible to completely eliminate change orders, unforeseen costs, or delays in construction projects, adequate preparation, vigilance, and adherence to these strategies can help mitigate these challenges. By implementing these proactive measures, you can increase the chances of a smooth and successful construction project.
By John Herzig Owner, Modern Space Construction Atlanta, GA
