{"id":3680,"date":"2018-03-13T09:22:23","date_gmt":"2018-03-13T13:22:23","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=3680"},"modified":"2026-02-12T05:27:12","modified_gmt":"2026-02-12T10:27:12","slug":"four-strategies-for-effective-change-order-management","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/four-strategies-for-effective-change-order-management\/","title":{"rendered":"Four strategies for effective change order management"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tFour strategies for effective change order management\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2018-03-13T09:22:23-04:00\">March 13, 2018<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Four strategies for effective change order management\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/four-strategies-for-effective-change-order-management\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author\">\n\t\t\t<div class=\"co-authors\">\n\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/robarkes\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2021\/03\/Q2-FY17-Sage-People-Picture-V2-350x350.jpg\" class=\"entry-author__image\" alt=\"\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2021\/03\/Q2-FY17-Sage-People-Picture-V2-350x350.jpg 350w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2021\/03\/Q2-FY17-Sage-People-Picture-V2.jpg 400w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Rob Arkes<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n<p>The most profitable contractors have a proven process for effective change order management. By following four key change order strategies, you will, too.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-set-proper-expectations-with-clients\">1. Set proper expectations with clients<\/h2>\n\n\n\n<p>During the preconstruction phase make sure that customers understand the purpose of <a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/change-order\/\">change orders<\/a>. If you have change order processing fees explain them. Show clients a sample of your work order form and walk them through the process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-confirm-project-scope\">2. Confirm project scope<\/h2>\n\n\n\n<p>When creating contracts make sure that descriptions of work are as detailed as possible. List any services that are excluded. If possible, have a licensed attorney specializing in construction review contracts prior to execution. Finally, establish a formal process for discussing contract&nbsp;terms with project managers and superintendents so that they understand what is covered, and what is out of scope.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-don-t-procrastinate\">3. Don\u2019t procrastinate<\/h2>\n\n\n\n<p>Often, contractors make the mistake of <a href=\"https:\/\/www.sage.com\/en-us\/blog\/subcontract-impacts-change-order-process\/\">waiting until the end of a project to bill for changes.<\/a> This can catch clients off guard, and lead to disputes that cause contractors to write off charges to \u201ckeep the peace.\u201d Billing in a timely manner for out of scope work will help ensure that there are no surprises for clients, and that you collect for all work done.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-implement-technology-to-automate-the-process\">4. Implement technology to automate the process<\/h2>\n\n\n\n<p>Software designed specifically for construction can greatly simplify the change order management process. Look for software that includes this key functionality:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tracks potential changes, as well as approved ones.<\/li>\n\n\n\n<li>Shows status of change orders.<\/li>\n\n\n\n<li>Notifies you when change order requests are overdue or approved.<\/li>\n\n\n\n<li>Automatically updates your budget to reflect cost increases due to change orders.<\/li>\n<\/ul>\n\n\n\n<p>Changes are inevitable in construction.<a href=\"https:\/\/www.sage.com\/en-us\/blog\/free-invoice-templates\/\"> Not getting paid for them doesn\u2019t have to be<\/a>. &nbsp;To learn more, download our Taking Control of Change Orders Job Ready Guide now.<\/p>\n\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The most profitable contractors have a proven process for effective change order management. By following four key change order strategies, you will, too. 1. Set proper expectations with clients During the preconstruction phase make sure that customers understand the purpose of change orders. If you have change order processing fees explain them. Show clients a [&hellip;]<\/p>\n","protected":false},"author":407,"featured_media":3648,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[44],"tags":[192,189],"business_type":[],"lilypad":[],"context":[],"industry":[50],"persona":[98],"imagine_tag":[246],"coauthors":[608],"class_list":["post-3680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy-legal-operations","tag-construction","tag-construction-customer-relationships","industry-construction-and-real-estate"],"sage_meta":{"region":"en-us","author_name":"Rob Arkes","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/construction-project-management.jpg","imagine_tags":{"246":"Construction"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/3680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/407"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=3680"}],"version-history":[{"count":1,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/3680\/revisions"}],"predecessor-version":[{"id":35315,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/3680\/revisions\/35315"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/3648"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=3680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=3680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=3680"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=3680"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=3680"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=3680"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=3680"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=3680"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=3680"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=3680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}