MITIGATING CHANGE ORDER RISKS IN COMMERCIAL CONSTRUCTION PROJECT.
Planning for a commercial construction and tenant improvement project takes hours and hours of effort before arriving to scope of work. Changes are inevitable in any construction project, what happens when you want to make changes to original scope of a project? You’ll be required to raise a change order. Depending on the type of change order, it can be very simple or complex involving multiple areas of the project. However, change orders will impact time, cost and schedule in the project. Whether you’re remodeling or dealing with new construction, Minimizing the need for change orders is vital if you want to keep your project on time and on budget. How do you do it? Identify the primary causes of change orders and take steps to manage them.
There’s an inherent element of unpredictability in construction, especially during tenant improvement/renovation jobs. Surprises do happen and dealing with them often requires change orders. However, you can limit unpleasant surprises by conducting a detailed site analysis and a feasibility study before you solicit bids for the project. These reports offer invaluable data for preconstruction planning.
Inadequate Planning during Preconstruction
You may have heard Benjamin Franklin quote ““If you fail to plan, you are planning to fail.” It is very much applicable to commercial construction. Jumping into a project without proper preconstruction planning may lead to several change orders. In many cases, an unusually low commercial construction estimate is a clear sign that somethings are apparently missing. Whether it’s spurred by a desire to win the contract or Contractor’s inexperience, it’s likely to cause problems during construction phase. To avoid this issue, opt for a contractor with a reputation for quality. They understand that preconstruction planning is crucial to getting the job done right.
When renovating or new construction occurs in a space that is leased or rented, Landlord may have concerns. If those concerns are not addressed until work starts, change orders may be required to rectify. Always it will be a good idea to keep the property owner in the loop early during design and preconstruction itself. This will eliminate hassle and can avoid change order.
There’s generally a learning curve for some client who is not used to blueprints and construction drawings, misinterpretations do occur in this case where envisioning what they represent can be tough. These misunderstandings potentially can lead to modifications when plans become reality, which will require change order. To limit this issue, you might want to request for 3D architectural renderings. There is an initial time investment and cost associated to it that can’t be overlooked.
Risk of Errors
Factors like labor, materials, safety, health, scheduling, building codes and other issues have to be juggled. Inevitably, errors will sometimes happen. You can mitigate this issue by working with an experienced commercial construction contractor.
At Jericho, we know that a commercial construction and tenant improvement project’s success starts with better planning, communications, scope creep control, cost and schedule control, ends with exceptional result. How can we help you with your next project? contact us today to get a quote.