Who Should Pay for All Those Change Orders?
Summary
Project Managers must have the authority to fill out the Field Change Order form, and get it initialed by the client. Based upon the AV integration company’s management and sales conversations, a client may not be billed for all of the work required to fulfill the Field Change Orders. Again, this is a business management decision, but you should always list the Field Change Orders’ impact on a project in its entirety. “I’ve found that clients will understand and respect you more when you show them the effort and materials required to make the inevitable project changes, then show them that you will not be charging them for a portion of that effort (you may even decide to credit the client when a change causes a reduction in the total labor required for the project).” Brad Malone I’m not saying give away the store, but it’s amazing how a client’s perception of value and professionalism changes when you share factual information. • The client requests a change, or the facility doesn’t match the drawing, or other subcontractors don’t complete their portion of the job.
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