Masonry Magazine June 2009 Page. 43
Never give it away. You are only responsible for what's included in your contract. If the plans are incomplete or the specifications don't match what your customer wanted, it's not your fault. Your customer must take responsibility for what he signed and agreed to. Giving away additional work to customers avoids confrontations and conflicts, but doesn't make you rich.
Charge the right price, the first time. Too often, subcontractors present change order requests that are significantly overpriced. When this occurs, customers lose trust and faith in their contractors. This causes re-pricing, delays, unnecessary arguments, and eventually these contractors lose repeat customers. Be fair!
Charge the right markup. To avoid future conflicts, always agree to your change order markup with customers before you start the project. Put the approved markup percentage and terms in your contract. This eliminates arguments later, when negotiating final prices.
Never do additional work without knowing: Is the work extra? How will it be charged? Who pays for it and when? Is there money available to pay for the work? Who is authorized to approve the work?
Always include additional time required. Most customers don't want to approve a time extension until the end of the job, even though they asked for extra work. Additional work requires additional time. Always include on your change order request how many days this will extend the project.
To request and track changes during a project, submit timely field memos documenting each item of extra work before you do the work or within 24 hours after discovering the problem. Outline the additional work, time required and the terms (lump sum, detailed estimate or cost plus) to be submitted to your customer per the contract requirements. Then, make sure you get it signed before it's too late to benefit your bottom-line. Don't be a WIMP, get it in writing, or forever hold your peace! IMAS
Entrepreneur, best selling author, and professional speaker George Hedley helps business owners and contractors build businesses that work. He is the author of the "The Business Success Blueprint Series," available in eight workbook and audio CD sets. Contact him to speak to your organization on his proven system to build profits, people, customers and wealth. Construction company owners are invited to attend his two-day Profit Builder Circle boot camps. Email George at gh@hardhatpresentations.com to receive a free copy of his book, "Everything Contractors Know About Making A Profit, or signup for his free monthly e-newsletter. Visit his Web site and online bookstore at www.hardhatpresentations.com.
George Hedley, HARDHAT Presentations, 3189-B Airway Ave., Costa Mesa, CA 92626 714-437-1122
"WORKING WITH ADVANCED CAST STONE MEANS THE JOB'S DONE RIGHT THE FIRST TIME. THAT SAVES VALUABLE TIME AND REFLECTS WELL ON BOTH OUR COMPANIES."
JUSTIN WILKS, PRESIDENT WILKS MASONRY
Why do masons and architects choose Advanced Cast Stone for cast stone, GFRC and architectural precast? Reliability, stability and a strong record of delivering quality. Every job. Every time. No other company works harder to make it easy for you.
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