Masonry Magazine June 2009 Page. 42
BUSINESS BUILDING
Are you a WIMP?
Have you ever completed additional work and without getting paid for it? Have you ever swallowed extra costs because they weren't approved before you did the work? Contractors know they are required to get change orders signed and approved prior to doing the work, so why don't they?
Change order excuses:
1. "I'm too busy to get the signature." (but never too busy to go to court!)
2. "I trust my customer." (How many good jobs will you have to do to pay for unpaid change orders?)
3. "This customer is my friend." (Friends sign for change orders, enemies don't.)
4. "I don't want to rock the boat this early in the job." (I'll let them kick me out of the boat later!)
5. "We've got to keep the job moving. I'll get the signature later." (when I have no leverage!)
6. "We'll work out all the extras at the end of the job." (when the customer is out of money!)
Are you A WIMP?
Out on the jobsite, your customer says to you: "Hey, would you mind extending this wall four feet and adding a door?" You say: "No problem, we'll get started right away and work out the costs later." You know the contract requires you to get change orders approved in writing, but you don't want to put pressure on your good customer, so you hope and pray you'll get the extra work approved and paid for later. A contractor who deals with change orders like this is Winging it, Insecure, Misguided, and Procrastinating. In other words, a WIMP!
By George Hedley
Train your customers
WIMPs don't get signatures; they beg after the fact, which isn't enough. WIMPS are afraid to stand up and demand what's right. WIMPs would rather please other people than take care of themselves. Customers treat these wimpy contractors without respect, walk all over them, pay them slowly, and refuse to approve their change order requests in full.
Use your contract and project management procedures to train your customers. If you are firm but fair, right from the start, you will get what you want from them. In your pre-job customer meeting held at the beginning of every job, explain exactly how change orders will be handled. If they want additional work that's not in the contract or on the plans, tell them you will require them to put it in writing, No exceptions!
Late never
"Requested" changes and "constructive" changes require different approaches. Requested changes are additional items or work the customer wants that are not in the original scope of work. Have him submit the requests in writing to your project manager, and then you'll get him a prompt proposal for the additional work requested. Constructive changes occur in the field as unforeseen conflicts or omissions. By contract, you must submit your claim for this required extra work within a specified number of days after the problem becomes apparent. Check your contract. Improper or late notice can result in no payment for additional work performed without prior approval. In other words, late notices or requests mean never getting paid.
Change order tips:
Change orders are not "extras." They are additions, changes or deletions to the contract scope of work. The contract, plans or specifications were not accurate or were changed by someone other than the contractor. Someone has to pay for this.