DEALING WITH EXCESSIVE CHANGE ORDERS in a construction project requires a focused and systematic approach. Here are 3 steps to manage the situation effectively:
1. Review Change Orders: First, determine whether the changes were due to design errors, scope gaps, client requests, unforeseen site conditions, or systemic problems. Then, assess the impact how each change order has affected the project’s timeline, budget, resources, and overall progress.
2. Enhance communication and documentation: Always address potential conflicts or disagreements promptly to prevent issues from escalating into change orders. And implement a robust CHANGE MANAGEMENT PROCESS that includes proper documentation of change orders, approval procedures, and clear communication of the changes.
3. Manage known risks: To reduce the impact of future change orders, adopt a proactive approach to risk management and contingency planning to identify potential risks and uncertainties that may lead to change orders. Conduct risk assessments and put mitigation measures in place to minimize their occurrence by developing contingency plans for known risks and potential changes.
REMEMBER that construction projects are INHERENTLY DYNAMIC, and SOME CHANGES ARE INEVITABLE. However, a proactive and systematic approach can help minimize the negative impact of excessive change orders.
AND FOR BIG PROJECTS, it’s best to form a CHANGE BOARD which will monitor, evaluate, and approve all project change orders.
