From the course: Construction Change Orders
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Change-order negotiation
- [Instructor] Very often, the subject of change orders causes great discomfort for customers and owners, because they feel powerless to control the cost when these necessary changes are made. That's one of the main reasons there's sometimes a negative feeling attached with change orders and change order pricing. Be sure to read your project requirements, including the specifications, and find out if there are any parameters that dictate exactly how the change orders are managed for your project. Sometimes the overhead and profit are predetermined in the contract. As you can see, we took the time to carefully identify the work, price the work, and illustrate our pricing openly and fairly with the customer or owner. Take your time to explain your change order pricing to your customer and iron out any issues or discrepancies early in the project. Once you're able to establish a good working relationship with your customer and they are comfortable with your pricing and the method that…
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