TOPIC: CHANGE ORDERS
Let’s talk about the importance of issuing a Change Order in the home improvement environment. Taking the time to document changes requested by a Client may be easy to overlook and may seem too cumbersome and time consuming, but in the long run it will actually save both parties time and frustration.
Recently, a vendor partner in the iSearchDecor home décor/home improvement business network encountered a situation that could easily have been circumvented had a Change Order been submitted to the client.
REAL LIFE SITUATION:
- Client hired our vendor partner to paint the interior of the home.
- Client selected the paint colors for each room.
- Vendor partner proceeded to paint the rooms.
- Client proceeded to change the color 5 times in 5 different rooms of the house.
- With each color change, the vendor partner also had the laborious task of re-taping baseboards and windows and edging ceilings.
- As the result, vendor partner incurred additional costs in paint and supplies.
- Upon the conclusion, the vendor partner submitted a bill to the Client for $1,800 to cover the cost of labor and supplies.
- Client refused to pay for the changes stating that they had no idea they would be billed for the changes and that this should have been explained to them prior to making the changes.
BOTTOM LINE:
A Change Order would have allowed the vendor partner to clearly detail the work involved with each color change and the additional cost that would be incurred as the result. It would have also given the Client the ability to clearly understand the charges and their commitment to pay them.
STRONG RECOMMENDATION: Take the time to STOP. Think about what the Client is asking and how this will affect the original proposal or work order. If the change causes significant rework or the purchase of additional supplies, create a Change Order for the project. You may end up with multiple Change Orders before the project has been completed, but that is completely acceptable.
Samples of a Change Order template can be found at the following websites:
https://www.elance.com/p/corporate/community/resource-center/contract-change-order.html
http://www.journalofaccountancy.com/Web/SampleChangeOrder.htm
About iSearchDecor:
iSearchDecor offers a FREE personal concierge service to assist homeowners in finding furniture, décor, flooring, window coverings, painters, cabinet refinishers and more with special savings. Contact 480-619-5505 or visit www.isearchdecor.com for FREE assistance today! Vendors interested in applying to join our exclusive business network please contact us at info@isearchdecor.com. We are currently servicing Phoenix/Scottsdale and Dallas. We are actively seeking vendors for San Antonio and Austin.
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How to Write a Project Proposal for the Home Improvement Contractor
How to Avoid Grievances for the Home Improvement Contractor
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