Writing · Pricing / Revenue Management

2025-07-08
Change Orders: The Unavoidable Pain You Can Manage In construction, change orders are like death and taxes—nobody likes them, but they’re coming. Here’s how to keep your deal from getting blindsided. 🎯 It Starts with the Bid You need a new roof. You get three bids. One’s dirt cheap. Another’s high—but you’ve worked with them before and they didn’t cut corners. Do you go with the low number? Not so fast. Most bids aren’t apples to apples. They’re Fuji to rotten Granny Smith. You must ask: • How many squares? • Full tear-off? • Flashing, underlayment, vent boots? • Decking replacement? How much included? Ignore this, and you’re asking for a mid-project “surprise.” 💣 The Change Order Bomb Demo day. The roofer finds rotted decking. Boom: $12,000 upcharge. And now? You’re not negotiating. You’re stuck—because the roof’s off and rain’s coming. That’s where contractors make margin. Not always unfair. They can’t X-ray your building. ✅ Five Ways to Stay in Control 1. Scope Like a Lawyer with OCD Don’t say “Replace roof.” Say: • Shingle type • Full tear-off • Drip edge + vent boots • Flashing • Warranty: labor + material • First 100 SF of decking included, $X.XX/SF after Spell it out. Like it’s going to court. 2. Compare the Details—Not Just the Price • Labor rates • Material specs • Clean-up • Allowances • Warranty terms Cheap bids hide gaps. A low number without drip edge or decking is like selling a car with no tires. 3. Force a Pre-Bid Walk with Your Ops Team No remote bids. Walk the site with your PM and maintenance supervisor. That’s how you spot the hidden risks before they cost you. 4. Lock Down a Change Order Protocol • Photos required • Written scope + pricing • Formal approval before work starts No more “We fixed it already, here’s the invoice.” That’s how you lose control. 5. Budget for Trouble On older buildings, budget 5–10% contingency. Set unit pricing for common add-ons: • Decking @ $/SF • Framing patch @ $/hr • Plumbing tie-ins @ $/fixture This keeps pricing fair—and emotions out of it. 🤝 Contractors Are Your Partner—Treat Them That Way Until you’ve been through a mess together, you don’t know how good a contractor is. If you want loyalty when things go sideways, don’t beat them up on every nickel. Change orders aren’t the problem. Surprises without a plan are. Scope better. Walk the job. Compare the details. Expect trouble. Build a process. Because in construction, trouble isn’t a surprise—it’s a guarantee.
Pricing / Revenue ManagementOperations / Property ManagementSales / NegotiationReal Estate (general)

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