I.   Know thy contract.

You cannot expect to do well with changes if you can’t identify what a change is or what the rules are. You cannot identify a change unless you know from what it is changed. The rules are in the contract. Read it.

II.   Concede not thy leverage.

The owner wants the project complete and wants changes made to accord with his whim and fancy. You want just compensation. So far, so good. But if you give the owner what he wants without receiving what you deserve, you’ve lost your leverage.

III.   Thou shalt not perform changed work without a written, signed, and authorized change order.

See Rule Number 1. Read your rules.

IV.   Depend not on thy attorneys to bail thee out.

Use attorneys for advice on the merits of the change order and negotiation strategies. Fight your own change order battles. Most times, getting attorneys involved at this stage may be counterproductive.

V.   If thou asketh not, thou receivest not.

If you do not request full compensation, you will not receive full compensation. There are remarkably few instances where of owners or general contractors will pay for items you leave out of your change order request

VI.   Thy time is money.

Do not forget to ask for additional days to extend the contract time if it is warranted under the circumstances.

VII.   Surprise not thy owner.

This applies to general contractors as well. Do not assume that the owner or general contractor knows about delays or disruptions that are affecting your work. Just like you, owners have budgets and management options. The more advance notice they have regarding potential cost increases, the easier it will be for them to work out solutions with you that will minimize additional costs or provide you with equitable compensation. Communication is key to successful construction management.

VIII.   Persist.

Persistence gets results.

IX.   Thy bargaining power equaleth that of others.

The bargaining power you have is equal to that of the owner or general contractor, unless (a) you don’t know the rules, or (b) you throw away your leverage, or (c) you choose not to use your leverage.

X.   Thy job is not finished until thy money be collected.

This is the bottom line. The unsuccessful offer excuses. . . . The successful offer profitability.

Conclusion

The above rules are not “rocket science,” but rather an organized, diligent, and persistent approach to managing the business portion of construction jobs. It is a process that the contractor must never ignore or allow to slide. There are many factors over which a contractor has little control. But this is not one of them. Establish the change order procedures your company will use and then follow them “religiously”.