You Think You Want a Change Order?

When I ran the prefabricated metal connector plated truss manufacturing plant for Lucas Plywood and Lumber in Salem, Oregon – one of the better framing contractors in town was a builder named Scott Rose.

Scott was reliable, did great work and was very reasonably priced with a caveat…..he claimed his middle name was “extra”. As in, make a change and it is extra. As it very well should have been.

George Headley recently wrote an article for Construction Business Owner, on how contractors can improve their change order. For the curious, the article can be read at: https://www.constructionbusinessowner.com/strategy/business-management/october-2015-improve-your-change-order-requests

The average Hansen Pole Buildings client requests 10-15 quotes before finalizing their pole building design. After all of these tweaks, we assume the client has dialed it in and knows exactly what they are getting. Sadly, there are some who have second (and third or fourth) thoughts and either want or think they want to make changes.

changeWhen a client even considers making a change after order, it stops the wheels of progress on not only their project, but others as well. Our staff is now taken away from their everyday work – just to get information so you can decide whether you want to make a change or not.

Everyone’s time is the most valuable thing they own.

This is why our Invoice Terms and Conditions specifically address Change Orders. I would encourage other post frame building kit suppliers, or pole builders to consider adding similar language to their agreements:

“CHANGE ORDERS: Purchaser may request modifications or changes to the building specifications or the scope of work. ALL such requests must be made directly to Seller’s office. Seller will be unable to honor requests made to any other parties. Any and all modifications or changes requested by Purchaser to the building specifications or the scope of work should be executed only upon a written Change Order, approved by Purchaser on Seller’s approved form(s). If Purchaser is more than an individual, any one person or their authorized representative(s) may execute Change Orders. All Change Orders resulting in added charges are due and payable upon acceptance by Purchaser, unless such Change Orders are executed prior to preparation of finance loan documents and can be included in total loan amount. Properly executed and accepted Change Orders take precedence over specifications stated upon this Agreement. Unless a Change Order has been prepared in writing and signed by Purchaser, the cost of processing or completing and Change Order shall be simply calculated on the basis of (1) A labor rate of no less than $120 per person-hour, or any portion thereof, for all office or administrative time spent on processing a Change Order which is processed by Seller, but which Purchaser elects for any reason not to have performed, (2) a flat labor rate of no less than $120 per person-hour, or any portion thereof, for all Seller’s or Seller’s agents who work on the Change Order, (3) Two (2) times the cost of all actual material costs invoiced to Seller, including delivery and freight, for Change Orders actually performed and completed by Seller. Should Purchaser and Seller be unable to agree on the cost of a Change Order, Purchaser authorizes Seller to charge Purchaser’s account at the above rates.

CONSTRUCTIVE CHANGES: May result from any oral or written act or omission by Purchaser or Purchaser’s authorized representative which causes Seller to perform work beyond the scope of the original Agreement or approved Change Orders, including, but not limited to, changes in the method of performance, misinterpretation of specifications, over inspection, rejection of conforming work, or rejection of “or equal” substitutions. Any such constructive change will be paid by Seller at the rates established in Section 10 of this Agreement, “Change Orders”.”

Moral of the story – no matter whom one invests with for a new post frame building, do everyone a favor, including yourself, and figure it all out BEFORE you order. You will be happier and have more money in your pockets!

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