What does the term “Change Order” mean in project management? Find out here!

Change orders in project management are like a game of chess, knowing the rules is crucial. Always ask for approval and payment before diving into change order work. Remember, time is money, so have your pricing and permissions down pat. Do not assume the owner knows about delays, and be persistent in collecting payment. Keep your main workforce moving and care for your part of the contract first. Following the Ten Commandments of change orders will save your project from derailing. 🏗️

What Is A Change Order In Project Management?

The Ten Commandments of Change Orders ⚖️

The first rule of change orders 💼 is that they are a document used to alter the original agreement. They detail changes in the scope of work, cost, and schedule. It’s crucial not to proceed with the work until a financial release is obtained. Understanding the contract is essential to play by the rules of the game and avoid unmanageable situations. 📝

Know Thy Contract

Commandment说明
1Knowing the change order process and the rules of the game is crucial for success.

It’s vital not to give away leverage and negotiate compensation before doing any work. Understanding the point of release and knowing what permissions are needed ahead of time is critical. 💰

Do not give away thy leverage

  • Commandment 2
  • Commandment 3

It’s important to ask for what is needed in the change order. Pricing and time must be thoroughly considered to ensure the project’s profitability and get the compensation deserved. ⏳

Ask for What You Need

  • Commandment 4
  • Commandment 5

Surprising the owner with delays or disruptions should be avoided. Persistence is key to attaining successful results, and bargaining power should not be given away. 💪

Time is Money

  • Commandment 6
  • Commandment 7

The job is not done until the money is collected, and everything must be lawyer-proof and put in the right format to stand up in a court of law. Successful management is about offering profitability, not excuses.

Persistence Gets Results

  • Commandment 8
  • Commandment 9
  • Commandment 10

Change orders are not necessarily profitable. While they can be profitable, they create an insane amount of variation and can derail projects. Communication and documentation are essential to reducing the impact of change orders, ensuring successful project delivery. 📊

Reducing Variation

  • Step 1
  • Step 2
  • Step 3
  • Step 4

By following this guideline and keeping focused, projects can be saved from the chaos and variation that change orders may cause. It’s vital to always be safe when dealing with change orders on your project. 🛠️

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