Coming off Summer where we have taken our beach vacations and yet still long to fit in one more before fall hits, I continue to wear my “Salt Life” gear, clinging onto the happy-go-lucky times and memories made with family and friends at the beach. “Salt Life” is a frame of mind, a vibe, and representative of good times. Some may call it a movement – it’s part of you, second nature and engrained whether toes are in the sand, a line dangles in the water hoping to catch a fish just to throw it back, or you’re simply walking the mall after a family meal at a local restaurant.
Together, let’s start a movement called “CO Life.” (CO = change orders). Using change orders is just as easy, engrained, and second nature as the tenets of Salt Life. They are easy to use as long as you have blank forms in your vehicle to grab when a customer (or hiring contractor if you're a subcontractor on the project) starts with another "ask" - that is the sign that should trigger in your mind that you might need a change order. Change orders are underutilized in all construction on both residential and commercial projects, but you can change this for yourself starting today. Don’t do things “the way it’s always been done” because you have to evolve with the changing times, and customers have become more sophisticated and, on some occasions, more difficult. Hence, why All For Contractors wants to equip you with the most forward-thinking solutions and education.
Misconception #1 that we’ve dispelled is: Change orders are only for when the price increases. = Wrong! If you missed this, read the article.
Now, let’s tackle misconception #2. Change orders are for commercial projects. This is… wrong!
From my experience, change orders are used more commonly in the commercial context, especially between GC and subcontractor whereby the subcontract agreement mandates their usage and perhaps payment will not be remitted for extra work without a written change order, signed by the proper representative of the general contractor. (Not getting the right signature is a conversation for another day – we’ll come back to that).
However, change orders should be utilized more than they are presently in the residential space. Verbal agreements between homeowners and their general contractor regarding supplemental work after the initial proposal are incredibly common. Maybe contractors don’t want to deal with the pushback of getting the homeowner’s signature. Perhaps they just don’t want to deal with the hassle, but failure to utilize change orders means that you are accepting that you may not get paid in full for the improvements you have rendered to the property. Seems risky…
As we’ve said, if it’s verbal, it didn’t happen – so let’s develop a system by which you implement easy steps. The goal is to get the signature and be protected, which is a desire of many, but the interim steps of having a form, whipping it out, and using it must be followed.
If you’d like a change order form, contact us or email Info@AllForContractors.com.
What can make this process easier? CUSTOMER EDUCATION. Advise them from the outset of how things will unfold, from the construction aspects to the procedural. I like to soften the blow of the procedural by calling it “logistics.” It’s very reasonable to discuss and educate the customer on the front end of logistics and what to expect.
Your initial contract should include a brief section about change orders such that when the customer accepts your bid, they agree to those terms and conditions and usage of change orders. Follow it up with a verbal explanation of what change orders are and how you will utilize them if needed. Basically, the initial scope is your directive from the customer of what to do and how to do it. If that changes, you will supply the customer with a change order that directs you to deviate from the initial scope. Usually, customers add to the scope and thus the price increases, but that is discussed and approved by the customer in writing in advance of doing the work. In other words, you will not be doing work and then sending the customer a bill that is surprising. You aim to be transparent, and change orders facilitate this. Perhaps even show the customer your change order form in advance and describe it. That way, if/when you need to introduce one, you have laid the groundwork. If the customer won’t agree to a written change order but are asking you to do more work included in the initial price, that’s a red flag. You can also give the customer 48 or 72 hours to decide on the change order but state that you will not be deviating from the written directive, i.e. the initial scope, without another written directive.
I encourage you to try this method with your next customer, maybe even on a small project, or practice walking through it with a friend or spouse. See how it feels. Think to yourself: “CO Life.” “CO Life.” Be one and the same. It’s part of you. It’s part of your methods. It protects you. It protects your company.
Contractors are forced to walk away from not just profit, but tangible costs expended to further a project. Do not let that be you.
Now you know; pass it on. All For Contractors is All For You!
If you’d like for us train your team on how to use change orders or navigate conversations with customers or if you have any questions, email Info@AllForContractors.com or complete our Contact Form. AFC Training Division is passionate about helping your team implement the best methods to avoid issues and get you paid!

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