Change Orders
Change orders are a fact of life in construction. Improve profitability, cash flow and customer satisfaction by effectively managing changes. Build a foundation for success with 12 steps to improve pricing and 11 negotiating strategies for the whole project team.
A Broader Definition of a Change on a Construction Project
D. Brown Management
February 24, 2019
The first step for contractors improving their management of changes on a project is simply earlier identification. This starts with a better definition of what a change really is, and then setting standards within your company around that definition.
change management foreman training project management
Change Orders and Average Cost Impact to the Project (Industry Survey)
D. Brown Management
March 11, 2019
Changes are a part of the construction process with many underlying causes. While we have all heard the average of 10% changes on construction projects, it is interesting to look at an industry study for validation.
change management foreman training project management
Change Order Profit Improvement
D. Brown Management
March 12, 2019
A 10% improvement in change order pricing for a $50M per year contractor will add $500K to their bottom line. This is not about simply marking up the change more, but rather, including the many costs that are typically missed or undervalued.
change management financial management foreman training project management
Changes and Cash Flow Improvement
D. Brown Management
March 13, 2019
Construction is a cash-intensive business and change orders are often one of the root causes of poor cash flow. A 30-day improvement to change management workflow can generate over $400K in additional cash flow for a $50M contractor.
cash flow change management financial management foreman training project management
Changes - Problem or Fact?
D. Brown Management
March 14, 2019
If you perceive that changes are a problem in construction, then you are likely framing them as a point of blaming others. This framing will impact your ability to effectively manage changes.
business management change management foreman training leadership principles project management wisdom
Change Management Fact #1 - It Will Happen
D. Brown Management
May 3, 2020
Projects are complex with evolving requirements and changing site conditions. Mistakes will be made. It is how the collective project team manages these changes that ultimately determines success at all levels.
change management preconstruction project management project planning
Underlying Causes of Changes on Projects
D. Brown Management
March 15, 2019
Start improving your change management skills by creating some categories of the underlying causes of changes your company experiences.
change management foreman training preconstruction project management project planning
Changes - Impacts Beyond the Direct Costs
D. Brown Management
March 16, 2019
Contractors don't typically see the full negative impact of changes and, therefore, don’t put the right level of resources into their management.
cash flow customer satisfaction estimating financial management foreman training labor productivity project management
Change Management Workflow (From Identification-to-Payment)
D. Brown Management
March 18, 2019
For contractors to manage changes effectively, they must understand the entire change management workflow up through the project owner’s approval and payment process.
business management cash flow change management foreman training project management value stream workflow mapping
Tracking Change Progress (The Funnel): Basic Status Categories
D. Brown Management
March 19, 2019
Managing changes effectively means that you need clear visibility across all projects. While the workflow will vary by project, the key progress milestones in your internal process will remain fixed.
business management change management process standardization project management
Change Tracking Log & Management
D. Brown Management
March 28, 2019
Great change management starts with a good tracking system. The far more important part of change management is the rigorous review process at least 2X monthly with your PMs that will limit your risk, increase your opportunities, and train your team.
change management financial management process standardization project management technology
Change Management Dashboards
D. Brown Management
March 29, 2019
Summarize your detailed change tracking logs with concise dashboards that give you critical information in a format that allows you to see the big picture while still having enough information to be actionable.
business management change management process standardization project management technology
Change Management Foundation
D. Brown Management
April 5, 2019
There are four foundational items that support great change management. Without these in place, you will never get the value out of streamlining the process.
communication contract management estimating market strategy negotiating opportunity selection preconstruction
Changes - Early Identification is Always Better
D. Brown Management
April 8, 2019
Early identification of changes and conflicts is the first key to success. The capability to identify changes and conflicts early in the process is a combination of organizational structure, systems, management, training, and coaching.
cash flow customer satisfaction estimating foreman training labor productivity preconstruction project management project planning
Early Identification as a Trainable Skill
D. Brown Management
April 15, 2019
The ability to identify potential changes early is a skill that can be tested, trained, and managed just like a craft skill.
change management foreman training project management talent development
Early Identification is a Process - Effectively Using Checklists
D. Brown Management
April 22, 2019
Few things will improve customer satisfaction, profitability, cash flow, risk, and team stress more than early identification of change orders. This is a process and a trainable skill. Checklists are some of the most valuable tools in that process.
change management project management
Be Specific About Problems
D. Brown Management
February 12, 2020
The business of construction is filled with constant problems. It’s not that great contractors don’t have problems, it's that great contractors have learned how to troubleshoot first, which allows them to learn from their problems faster.
principles problem solving wisdom
Impacted Productivity - Five Elements of Making a Good Case
D. Brown Management
August 25, 2018
Contractors are continually faced with costly impacts to their labor productivity and schedule with many beyond their direct control. The best Project Managers know how to identify, communicate, and mitigate these impacts.
business management change management foreman training labor productivity negotiating project management
Two Planning Dimensions
D. Brown Management
April 20, 2019
Some of the impacts you see on a project are not as clear as a design change, conflict, or obviously changed condition. Some impacts, such as poor project sequencing or congested work areas are hard to notice if you don’t have good tracking systems.
budget management change management foreman training project management project planning schedule management
Four Critical Elements of an Effective Task
D. Brown Management
March 7, 2018
Maximizing labor productivity starts with defining exactly what needs to be delivered and then breaking it down into tasks that can be effectively managed.
change management foreman training labor productivity project management project planning schedule management
Two Key Results for Project Planning
D. Brown Management
September 2, 2018
There are two critical key results that should be focused on as part of every project planning process.
budget management change management foreman training labor productivity project management project planning schedule management
Production Tracking - The Basics
D. Brown Management
September 4, 2018
Schedule + Production are two foundational key results the Foreman will achieve through their planning. The heart of any production measurement is simply “Earned Budget vs. Actual Cost”.
budget management labor productivity production tracking project management schedule management technology
ABC Daily Planning
D. Brown Management
August 24, 2018
Effective planning processes are the foundation for great production. The planning process can be seen as a series of tighter and tighter concentric circles with the bullseye being the daily plan. Daily feedback improves performance and mitigates risk.
change management foreman training labor productivity