Change orders are a significant part of every construction project, and sometimes it can also be a key risk factor if handled unprofessionally. A change order refers to the amendment or the supplement to the construction contract drafted initially or to the scope of tasks in the project. The general contractor, owner, or subcontractors can incorporate it. Most of the time, they perform extra work due to errors or omissions in work or due to construction drawings that are ambiguous.
Kanat Sultanbekov New York– how are change orders a risk to construction projects?
Kanat Sultanbekov is an esteemed construction manager from New York, known for his outstanding reputation for completing his projects on time with the highest safety standards. He is known for his exemplary leadership skills and ability to effectively balance strategic planning, risk assessment, and operational processes.
According to Kanat Sultanbekov New York, rising costs of projects, delays in contract milestones, workflow interruptions, and the inability to complete tasks in time are the significant problems caused when change orders are managed poorly. In his opinion, handling change orders involves preparation, communication with the parties associated with the project, and accurate understanding to manage them effectively.
Disagreements are common
Disagreements over what constitutes a change order are widespread as they involve different parties in varying ways. It would help if you clarified discrepancies or ambiguity in the plan specifications or in the tasks to be done. Your subcontractors need to be clear about the work that has been contracted to them for completion. If you get the above points sorted, the requirements for change orders will be eliminated in the future.
Vague clauses in construction contracts
Some construction contracts might include conflicting terms and conditions about change orders. There might be a clause stating that the work for change cannot be started without written approval. There might be another clause stating that the requisition for extra work can be allowed without any agreement. These are some issues that every project manager should take up and clarify with their clients before the final contract is signed.
Some change orders do not affect a construction project’s costs or schedule. However, this might not be the case all the time. As a project manager, you should recommend to your client that the work on the site must stop to address the changes to the job. You might have to discuss associated delays or even schedule changes that have to be made. Ensure that the material, labor, and equipment you need are covered in the order.
According to Kanat Sultanbekov New York, you should note that every change order will also affect your subcontractors working on the project. You should coordinate with them to assess any cost changes or alterations in their work schedule when the change order is implemented in the project. The other risk factors to your project, besides a change order, can be incomplete drawings, design errors, contracts that have been written poorly, unexpected rise in costs of materials, and poor management of the overall project. The manager needs to be careful and identify these risks to stop delays and make the project profitable for everyone!