By Ciera Rupp

By Ciera Rupp

uring a facility’s development process, unforeseen changes, errors, and conditions can arise. When it comes to managing these changes, change orders are a way for management to sustain preventative measures, project management, and overall guarantee a smooth function of the facility.

A change order is a formal document that outlines the necessary modifications, including future work to come. This occurs when there is a need to modify the original scope of work initially set within the construction industry. When regulations and processes are originally formed, they are rarely set in stone. External factors and unforeseen site conditions can trickle into daily operations, inevitably necessitating fluctuation. Change orders, while tedious and not always desired, are integral to any stakeholder involved in a construction project.

Change orders can be imposed by the owner, developer, or builder. Consequently, change orders materialize due to circumstantial events such as changes in building codes, municipality issues, safety concerns, availability of materials, etc. Alternatively, a change order can come about due to negligence by any stakeholder or a requested change by the client. Effective management of change orders is crucial to ensure that projects are completed on time, within budget, and to the satisfaction of all stakeholders. Overall, there is no telling where or when a change order will arise, but it is important to anticipate them, prepare accordingly, and hopefully proceed with grace and poise.

When a customer proposes an initial plan for their project, they begin to work through either their own company or with an architect to implement the idea. The beginning of a project is one of the most monotonous and detailed steps in its development. Initially, one should be working on obtaining the correct building permits, adhering to updated state codes, and communicating effectively with all relevant parties. According to Angie Guerin with MakoRabco, “The best thing that MakoRabco does relative to change orders is try to vet through the potential for change factors before contract. Being as specific as we can takes some ambiguity out of the process.”

At the beginning of a construction project, one must immediately obtain all the pertinent permits from either their state or local municipality and confirm the relevant state and building codes. Once solid permits are established, serious changes to the project are less likely to be encountered. Jamie Lindau from Trachte Building Systems mentions that, “it is a very slow process to get your building permits nowadays; they will change their mind about pre-approved permits. It’s hard on the owners and the builders.”

It is important to approach a project with meticulous detail and to anticipate any possible cost fluctuations. Change orders become exponentially more difficult to deal with the further along a project is in development. Once money is already spent and invested in the integrity of a design, changes may call for completely new charges that the customer, developer, and architect were not prepared for. This can be a risk, as there may be unprecedented costs added to the existing project.

Change orders have to do with timing and balancing your projects in a timeframe where pricing can be guaranteed. Establishing firm prices early on will help avoid any shock or disappointment if and when a change order potentially incurs new prices. David Dodge from Paramount Metal Systems states that they “try to thoroughly go through the proposal phase with the client to make sure everything is understood, so when a change order does appear, there isn’t animosity or friction.” Random price changes can incur tension within a professional relationship, which is why taking the time to thoroughly assess prices and their potential for fluctuation is paramount.

While change orders are not a favored factor within the production process, they tend to arise under a myriad of circumstances. According to Guerin, “Change orders are a bit of a dirty word in the construction industry. Most general contractors don’t like to hear about them.” One would like to think that when initially starting a project, everything and everyone involved will follow suit. This is not always the case, as some parties involved may miss important details or fail to acknowledge necessary steps.

Change orders “are very common today, more than ever, because it’s hard to get your building permit,” says Lindau. As time changes, so do the codes and requirements of buildings. Preparing your building, or whatever constructive design it may be, to adhere to the relevant codes is a complex process that, if not approached with meticulous detail and preparation, may elicit the need for change orders later on in the process. Although, even with the appropriate amount of prepar“The best thing that MakoRabco does relative to change orders is try to vet through the potential for change factors before contract. Being as specific as we can takes some ambiguity out of the process.” -Angie Guerintion, there can still be scenarios where a disruptive change order may arise.

Hypothetically, if the owner or some other stakeholder in the development process neglected to inform the builders of the building codes, there may be necessary changes to a project that is already being built with materials that were already purchased. Lindau says, “It gets disruptive to keep your flow of goods correct and to be the most efficient when change orders come up.” In fact, change orders are generally considered to be a very disruptive aspect of the development process. If certain codes and rules are not followed, there could be legal repercussions.

Change orders are an opportunity for trial and error. With the appropriate amount of time and experience, they can be feasibly handled. About the self-storage industry, Guerin says, “We’re all a bit more educated today on commodity trajectory; there’s more stability when encountering unexpected events.”

Handling these types of issues is not easy by any means. “You need a lot of fortitude to be an owner today,” says Lindau, “and walk through all that morass for a year or so of dealing with building departments.”

Hiccups in the development process are inevitable, and there is a certain amount of sympathy surrounding the subject. Everyone makes mistakes.

Change orders are an inevitable part of the development process in facility management. Effective management of change orders requires a clear process, effective communication, and a focus on minimizing the impact on the project schedule and budget. By following best practices and tips for effective change order management, those involved can ensure that projects are completed on time, within budget, and to the satisfaction of all stakeholders.