Company owners want satisfied clients that help grow their businesses by word-of-mouth. Keeping their customers happy is inherently part of the job. But savvy business owners soon learn that some customers try to push the envelope when it comes to add-ons and do-overs.
But time and materials are not unlimited on the job. Agreeing to requests for changes to the original plans can quickly put a serious dent in a company’s bottom line. It can also play havoc with the scheduling of subs. Find out how you can stop scope creep before it starts.
Update contracts that lack clarity
Get a legal review of your contracts periodically to ensure that they reflect all current laws and circumstances that affect your business. Pay particular to the phrasing in contracts and work orders. Using “shall” instead of “may” is a different legal concept entirely.
Detail change request process
Be certain that your contracts state just who must sign off on any proposed changes to the agreed-upon work order, as well as the consequences of carrying out the changes (financial and otherwise).
Insisting on signatures at each stage of the construction process limits passing the buck. No approval, no changes.
When you may want to acquiesce
Asking for an additional skylight is not the same as requesting removal of a load-bearing wall. General contractors may find that granting an inconsequential request by the client goes a long way in generating goodwill for your brand.
Including a clause like “or at the discretion of the general contractor” allows owners to comply with reasonable client requests. The already-signed contract should prevent any problems from cropping up.
Is it time for a contract review?
If scope creep poses problems for your bottom line, it may be time to review the contracts you use. Doing so now can prevent costly mistakes later.