How can you establish clear expectations with clients to avoid change order disputes?

A trade contract must have a clear scope of work, reference a set of drawings, and list any exclusions. Allowances, or add alternates, are included in subcontracts to identify in advance potential costs that may arise as construction gets underway. It’s important to be clear on the SOW (scope of work) to avoid legal battles at the end of a project.

In the industry, effective communication is essential to ensure project success and customer satisfaction. Transparent communication not only fosters trust and strengthens the relationship between contractors and clients but also minimizes misunderstandings and delays.

It is important to face facts and communicate them without delay, foresee issues that may arise and discuss it with clients beforehand. Partnering and instilling trust with the client is important to help them understand you have their best interest in mind

As a consultant, I offer the Client advice as needed.However, the Client makes the final call.Although you can counsel your Client, I think that the term "educate" is excessive. The best course of action is to establish a suitable Change Order Procedure and adhere to it scrupulously.

Documenting changes discussed and keeping the team both internally and with the client apprised of the updates is important to avoid conflicts that can arise out of missed communication

Change orders are inevitable in most projects, arising from unforeseen circumstances, changes in project scope, or adjustments in project requirements. Implementing a robust Project Management of Change (PMOC) process can help manage these changes efficiently and maintain project integrity. Best Practices for Implementing PMOC in Contract Change Orders: Implement a Tracking System: Develop a system for tracking change orders from initiation to closure, ensuring that no change is overlooked. Regularly Review Project Status, concerning its schedule, budget, and scope to identify potential changes early and adjust plans accordingly. Train Your Team: Ensure that all project team members are trained on the change management process.

Communication is important from the start of a project until the end. As a contractor we need to listen and understand the clients expectations of the project. From there we need to know what questions to ask and educate the client about where the potential shortcomings may be to complete their project. IE: Lead times and production schedules. Its a good idea to suggest a contingency be added to the budget which may help minor items being overlooked or changed once the project gets started. Continued updates with a client, reduces the chance of surprises and ensures a better project closeout.

In my experience, change orders management is differently received in different cultures. In Asia I often found that the customers feel that the supplier is at lower hierarchy position and thus some load of changes in the scope should be given for free. Not all people think like this, but it may happen much more than - for example - with American customers, who most likely will immediately auto-admit and call for change orders if they need to ask for scope modifications. To conclude: the Culture should be understood and bi-directionally respected. When culture differences are understood by all stakeholders, the PM should not be shy in transferring the need for a firm change management application, which will be easier accepted.