Change orders can significantly disrupt your projects. While it’s not uncommon to make some necessary alterations to your plans as work progresses, it can cause issues like delays and overspending when these changes start to stack up.
Causes of change orders (and how to avoid them)
Change orders are caused by a variety of factors, whether they’re in your control or not. Here are some reasons you might have more change orders than usual:
Poorly defined or inaccurate estimates
When making an estimate for your project, it’s important to take into account as many risk factors as possible. Surprise expenses are a part of every project, and they should always be accommodated for in your plans.
With good budget management tools, you can plan even more accurate estimates over time by having past data to use as a reference. Accurate estimates based on real data beat guessing every time.
You should also practice good communications and be as clear as possible with what you aim to accomplish with the project and what the owner expects, that way there are minimal surprises.
Mismanaged labor
Your employees are the most important factor in guaranteeing your project’s success. When planning out a project, you need to make sure you have the right people and skills present on the jobsite. Otherwise, the work either won’t get done, or it will be done poorly.
With modern labor management technology, you can ensure you’re making the most of your workforce. The right labor management system will help you manage certifications and employ a labor map that shows where employees are and when they’re scheduled to work. That way, you can see what skilled workers are available when you need them.
Late or damaged material deliveries
Some reasons for change orders are outside of your control, like receiving damaged materials or late deliveries. And maybe they’re even outside of your supplier’s control, too, but that doesn’t mitigate the harm done.
Pay close attention to how suppliers manage issues with delivery. If it’s a one-off problem, that’s understandable. But if it’s a repeated issue or they fail to resolve any problems, it might be time to find a new supplier.
Requests for additional work from the project owner
Sometimes, the project owner will decide to add work onto the project you’ve already undertaken. While inconvenient, this is just a fact of the industry sometimes.
The best way to avoid this scenario is to clearly convey the project parameters up front. This will either help prevent the issue, or help the owner understand that they’re asking for additional work from you, meaning the budget will have to be adjusted.
Unexpected issues on the jobsite
The world is unpredictable, whether it’s theft, bad weather, or worker injury, things happen that can affect your schedule and require changes.
To help mitigate these issues, keep detailed daily reports and report any incidents that occur so you always have clear visibility of what happens on the jobsite and how it might affect your schedule or budget down the line. And, when it comes to safety issues, many of those can be prevented altogether by briefing employees on hazards ahead of time with toolbox talks.
Keep projects on track with Raken
Our project management capabilities help you keep projects on schedule and under budget. With digital daily reports, flexible time entry options, and detailed documentation, you can ensure that estimates remain accurate and you’re more empowered to stay within your budget.