Now that your commercial construction project is underway, it’s only a matter of time before your revitalized property is ready for action. But in some cases, whether due to a change of heart or unforeseen circumstances, smaller issues can delay the construction process and lead to a change order.
This may seem like a frustrating obstacle to small business owners unfamiliar with commercial construction, but according to Jennifer Wilson, owner and director of business development at Southern Construction, LLC, change orders are common in many construction projects. Wondering how these orders affect the overall construction process? Let’s start by exploring what exactly a change order entails.
What Is a Change Order?
In simple terms, a change order refers to any work that’s incorporated into a project extending beyond the initial scope of work. The reason behind such a change can vary widely, according to Southern Construction, LLC co-owner Michael Herbert, but there are two primary types of orders. The first includes unforeseen circumstances uncovered during the project – such as foundation damage or the presence of a termite population – that may necessitate additional work in order for your contractor to complete the project successfully. The second type of change order is the owner-initiated order, which occurs when you, the business owner, choose to make a change once the project has already begun.
No matter the change order’s cause, Wilson and Herbert agree that small business owners can expect most change orders to unfold in a similar manner, though many factors vary based on the scope of the change. Regardless, we’ll break down the basics step by step.
1. Identify the problem
This step is largely dependent on the nature of the change order. If the issue stems from your preferences, it’s your responsibility, as the business owner, to relay the issue to your contractor, so it can be incorporated into the project’s scope of work. If the problem is unearthed during construction, your contractor will contact you and explain the issue in detail, often providing pictures and other materials that help make the situation clear.
2. Discuss how the change will affect the project as a whole
Change orders naturally result in more work, which means more time and money spent by the contractor. This requires paperwork that serves as an amendment to your initial contract. To determine the precise cost and terms of the change order, you’ll have to communicate with your contractor – sometimes in person, based on the size of the project – and work out the nitty-gritty details of how the change will fit into the project as a whole. In general, it’s safe to expect that change orders may delay the date of completion, but your contractor will work with you to come up with a schedule that suits your needs.
3. Sign off on the paperwork
After you’ve wrapped up your meeting, your contractor will provide the paperwork necessary to ensure that the change order meets the demands of both parties. Both parties will be required to sign this paperwork before the change can take place, so it’s best to take care of this step as soon as possible. Neglecting paperwork can extend the delays already created by change orders, so it’s in the business owner’s best interest to be proactive about signing off in a timely manner.
“Whatever the issue may be, it can completely shut down the project until the problem is identified and taken care of,” Herbert explains. “A small business owner that sits on this paperwork can delay a project for weeks, if not longer.” Emphasizing the importance of prompt communication, Wilson notes, “One of our goals is to complete the project in a timely fashion. It’s essential for both parties to be diligent and responsive.”
4. Proceed with the project
Once the paperwork is signed, your contractor can dive back into the project and make the appropriate changes. Simply bear in mind that the change will almost always push back your finish date, though you’ll typically be rewarded with a project that’s safer, of higher quality or better designed to meet your business’s unique demands.
Choose Southern Construction for reliable commercial construction services in the New Orleans area. Whether you’re new to the construction process or a renovation expert, the Southern Construction team can guide you through each and every step, from bid to closeout and beyond. Contact the company today to learn more.