How To Handle Construction Project Variation
Tips for managing variations in construction projects to keep your projects profitable.
Every construction project is subject to the inevitable fluctuations in unit prices, timetables or last-minute changes from a client. Experienced project managers and construction contractors will plan ahead to make sure these variations can be accommodated without losing time or money on the job.
Construction Labor Contractors, a leader in construction labor staffing, has found some of the most common variations to construction projects:
- Client revisions requested during the project
- Cost-cutting due to unforeseen financial problems
- Poorly defined or un-detailed project objectives, scale and scope
- Legislative changes, third-party issues or new demands resulting in replacement of materials or products
- Changes of schedule resulting from bad weather or inadequate workforce or sub-contractors
To combat these construction variations you need a detailed way to take action and keep your clients on board and happy with your service. Having a well-managed construction job can help keep your projects profitable and completed on time. CLC knows that you’re main goal is to complete projects that satisfy your clients while protecting your bottom line. Here are some tips for dealing with construction variations.
Manage expectations and communicate changes
Substitutions and omissions have a large impact on how viable and profitable your construction project can be. Often times where contractors will receive the most push-back from clients is when the client feels variations and substitutions have been used without their knowledge. Avoid this problem by managing the project in a straight-forward, transparent way. Make sure that no one on the team makes variations to a project without other workers or management knowing. Make sure that you’re construction manager and those who are managing your finances and communication with the client are on the same page. Investigate any claims or complaints of lost revenue right away to help maintain detailed records.
Keep everything documented
Echoing the previous point, documentation is key. Detailed internal documents and contracts with clients will eliminate many disputes and future variations. Even if it seems to be agreed upon that a client will pay a certain amount, make sure these agreements are in writing. If there are construction variations, go back with revised documents to be approved and signed, no matter how small the changes may seem to you.
Make sure you have a clear financial overview
As variations happens and clients request changes a solid construction contractor or vendor will make instant adjustments to budgets and projections to help with cost planning. This helps any changed be factored into the overall cost of the job and the client’s budget so no one ends up wasting time and resources. Effective construction management will provide a quick forecast to the cost variations so these can be agreed upon before implemented. This process makes sure that your client doesn’t feel financially accountable for changes they didn’t agree to, saving you potential recourse.
One thing that can help you avoid cost and time-consuming headaches is making sure you have enough reliable, skilled labor on hand to complete every job on time. At Construction Labor Contractors we provide contractors with skilled craftsmen to get the job done. Learn more about our labor staffing solutions, or if construction staffing is the right solution for you.
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