If you talk to anyone who has done a major renovation or custom build – one thing is certain: scope changes are inevitable. While careful planning and a thorough design/estimation process can minimize the amount of unknowns going into a project, many factors can influence the “change order”. Often a client simply changes their mind. A new or improved product may become available. A design flaw may be discovered, requiring a revised layout. Human error is a factor, and mistakes do happen. With all of this considered, what can you do to mitigate the elevated cost, and stress, of scope changes?

Documentation is crucial. Whether you are the client or the contractor – a detailed documentation, and key assumptions based on the work to be done must be clearly outlined and signed off by both parties. When the time comes for a change order, referring back to this document will help determine where the responsibility lies for the changes that are proposed.

What good though is a document that nobody understands? Clear communication between all parties before the work begins will help to alleviate what can quickly become a “he-said-she-said” scenario. Sit down with your client, with your sub-trade, with your employee – “walk through” the proposed schedule and scope of work (whether actually onsite or in the office). When a change arrises, the foundation of effective communication will already be laid – and navigating through the scope change will be much less painful.

Once you have come to a decision on the extent of the scope change – document it again. Have both parties sign and date the change order. In some cases it may be advisable to have a third party witness the change, or further consultation and explanation with the suppliers and trades scheduled to do the work may be required. Take pictures of everything, including the item being changed or removed, or if the change is conceptual (ie layout changes on a drawing before the work has actually started) – include the before and after documents that apply to the change with your change order.
For the most part, gone are the days of a handshake deal. While good businesses are built on trade partners that are trustworthy, it is in everyones best interests and a protection to rely on pen and paper when your project changes course.