Managing Change

When we're on the job site, we want to make the most progress possible on our clients' new home. Building is a dynamic and exciting process; one that we try to make trouble free and easy to understand. Once we get going, things happen quickly, so we work with our clients to make decisions well ahead of time to help ensure they get their home on time, on budget, as promised.

Before the first scoop of dirt is moved, we collaborate with our home owners to make most of the big decisions, but that is rarely the end of the process. Once we're underway, owners often think of a few things they'd like to change. Such changes may range from making the house larger to a change in bathroom cabinets, a different floor pattern or material in the kitchen, or just adding an extra light switch or two.

We document such requests, called "change orders," to make sure that all parties have a clear understanding of the scope and cost of the change. It is important for the homeowner to understand how change orders affect the building process. When owner and builder communicate well, the impact of change orders on construction schedule and budget can be minimized.

A change order made after construction begins always has a cost attached. The cost may be the time and labor it takes to make the change or it may be the price of additional materials or products required -- sometimes both.

The timing of a change order has a big impact on such costs. Typically, the later in the building process, the more expensive the change order. Some changes, of course, are simply impossible or truly cost prohibitive, such as altering the foundation or adding a basement once we've started building a home's structural frame.

We respect our clients' desires to get exactly the house they want. We know that some finishes (or even floor plans) may be hard to visualize until they're actually installed or built. Changes will happen! For that reason, we've become more sophisticated and systematic about managing change orders. Our process not only ensures good communication and provides assurances between everyone involved, but also helps us maintain the building schedule and minimize additional costs.

The change order process: The most effective change order processes follow a general pattern that creates a paper trail and provides reliable cost information up front, including:

• Centralization. Your change order requests are often managed by one person to help ensure effective communication between everyone involved. This includes specialty trade contractors, suppliers, our job site managers, and, of course, our customer. We discourage owners from making special requests directly to a trade contractor, as this is a quick route to misunderstandings and disrupted schedules.

• Documentation. Customer requests are transferred to an electronic or paper-based change order form that initiates a paper trail and helps ensure greater accuracy and communication.

• Terms. We anticipate many of the changes our homebuyers make. We have a good idea of the cost and time most changes require. As a result, we can often communicate the terms quickly so that owners can make an informed decision in plenty of time to make the change or decide against it.

• Confirmation. It's important to everyone involved that no change occurs without a client signature. Clients must approve the cost and terms, as well as the style, finish, or other details about the change. In addition, clients must be aware of how the change may affect their move-in date or other aspects of the construction schedule.

• Inspection. We may request a client to visit the new home's job site when the alteration is being made so they can see it happen, ask any questions and insure satisfaction.

• Payment. Costs for change orders may be billed separately, usually as soon as the change has been made and completed to a client's satisfaction. Sometimes we ask for a percentage of the cost or full payment up front before making the alteration, depending on the type of request.

By using a dedicated, document-based change order system, our clients are assured that any changes they consider -- whether minor or extreme -- are taken care of in a timely fashion without confusion, miscommunication or unnecessary costs.

What is an Organized Builder?

Investing in the design and construction of a new home is a daunting task, something most people do once or maybe twice in a lifetime. The last thing you need is a builder who doesn't have it together.

Why does that matter? Simply, homebuilding today is an increasingly complex endeavor, involving dozens of trade partners and materials suppliers, requiring compliance with building codes and other regulations, demanding financial savvy and tight management, and calling for keen attention to every detail. This demands a highly organized approach to the new home construction process.

A hitch along the way can have a big impact on quality, performance, durability and satisfaction ... or it can be mitigated or avoided altogether to protect your investment and give you peace of mind through the process and beyond.

The difference between these vastly different scenarios depends on how organized your builder is.

But what does an organized builder look like, and how do you evaluate a builder's ability to guide you through this time-consuming and sometimes confusing process?

There are several signs that indicate a professional builder's business acumen, organizational skills, and other capabilities that help ensure ultimate satisfaction with your new home.

Cleanliness. A clean and organized job site can often reflect a builder's overall organizational competency. Beyond its aesthetic appeal, a clean job site is safer for workers and visiting homeowners, reducing liability. In addition, materials that are properly stacked, staged, and covered reflect a concern for quality construction and respect for the budget and schedule.

Responsiveness. The number-one complaint among dissatisfied homebuyers is that their builder was slow to respond, or never did. By contrast, an organized builder understands the importance of being responsive from the first contact through completion and beyond.

Often, professional builders develop a process for responding to calls or emails from potential and current clients, usually within 24 hours. They articulate that policy upfront and follow it through to establish and maintain reliable expectations.

Protection. Professional builders don't allow themselves or their clients to be at risk. To mitigate and prepare for hazards, they are fully insured and -- if required by law -- licensed and bonded. And if you ask about those protections, they'll provide the necessary documentation and lead you to the proper agencies and organizations for more information.

In addition, an organized builder pays his subcontractors and materials suppliers from your job (and only your job) on time and per his contracts with those partners. He then collects lien releases once the contracts are satisfied (based on mutual satisfaction with the work performed) to protect you from having any liens placed against your property for unpaid services or products.

Passing the baton. If you haven't yet noticed, organized builders work to make sure their clients know what to expect throughout the building process ... including what happens after move-in and beyond the expiration of the builder's service warranty.

Professional builders know how and when to pass the baton for the care and maintenance of the house to homeowners. This is an incremental process that logically shifts responsibility over time rather than abandoning clients at the doorstep of their new home.