Why Change Orders are not exactly evil
Many people in construction see Change Orders as the work of the Devil himself, but they’re not… or, at least, they don’t have to be.
The Hard Knock Life
Construction is the toughest industry in many ways: long hours, tight margins, challenging conditions. Above all, every project is different. Each and every project is different. A builder could work on houses for forty years and no two will be the same. Why?
Think of all the variables – client, architect, quantity surveyor, project manager, contractor, subcontractors, specialist consultants, personnel, location, ground conditions, weather, materials, and technology… and don’t even get started on legislation and regulations!
Terms & Conditions Apply Here
Because no two projects are the same, it’s very hard to pin down at the beginning of the project exactly what is required to get to the end of the project. In a lot of ways, the original contract is just the starting point on a construction project. That’s where Change Orders come in.
Ch-ch-ch-changes
Changes to the original contract are inevitable in construction. For example:
• The client wants to add an extra metre to the building, or change the light fittings or change the tile specification
• Bad weather has delayed work.
• An old lead pipe was discovered under where the foundation is to be located
• Rock has been discovered underground where it was thought there was clay
• The specified roof covering isn’t available and a replacement is needed.
Whatever the reason for the change to the original contract, a Change Order is needed.
And then the trouble starts…
The problem is, Change Order management is a bit of a sh*tshow. Why? Because everyone has their own system for dealing with them:
• Homemade Excel spreadsheets on computers.
• Neat handwritten lists in ledger books.
• To-do lists on smart phones.
• Emails and photos filed in a specific folder that only Alan can access (Oh, and did you hear that Alan left for Canada two months ago?).
• Scribbled notes on the back of a tea-stained A2 drawing thrown into the back of a van and now nestling beneath a consaw and a wet hi-vis vest.
War!
Change Orders often create their own little brand of confusion, as people disagree over exactly what the scope of the Change Order is (or was), for a variety of reasons:
• The architect and contractor both have their own scraps of paper agreeing on different changes, and everyone is shouting and crying like playtime at playschool.
• No one thought to tell the subcontractor, who went ahead with his work, which now has to be undone (but who pays?).
• The contractor is in a hurry and begins work on the change without the Change Order being approved. In the meantime, the client decides that the change is too expensive and rejects it.
• And many more…
But wait! What about the programme?
There are three major problems with the way Change Orders are currently managed.
1. They delay things. Nobody in construction likes delays:
• The contractor has other projects he could be moving on to.
• The subcontractor has seven other projects he promised he would be working on, two weeks ago.
• The client – whether homeowner, investor or public body – wants to use the completed project ASAP.
• The consultant wants to prevent the last of her fee being eaten up by a project that is dragging on (and on and on).
• The project manager just wants this bloody project over so he can get his sanity back (at least until the next project).
2. Storage is messy, laborious, and – with email chains, for example –everyone ends up with their own interpretation of what was agreed upon.
3. Each project has a new way of doing Change Orders.
What if…?
Lie down in a comfortable place and close your eyes. Let’s play a game called Imagine.
Imagine a wonderland where Change Orders were automated. A world where raising an RFI was as easy as writing a text message. A world where Change Orders could be recorded, assessed and processed right from your smartphone. A place where you didn’t need to worry about storing photos, invoicing or filing, where everything was done automatically. A place where that little device in your pocket gently reminds you when deadlines are approaching so that time bars don’t manifest themselves and lead to another dispute.
Imagine Change in ONE location.