Change Management Workflow

For contractors to manage changes effectively, they must understand the entire change management workflow up through the project owner’s approval and payment process.

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Most contractors don’t have a consistent internal process much less a deep understanding of what the process looks like downstream or upstream.

Change Management: Mapping the Process. Identification to Payment.

This lack of knowledge impacts every aspect of change management, including the customer relationship, profitability, and cash flow. Understanding this entire value-stream is really about learning to see.  

The workflow shown is a simple example. This needs to be expanded significantly for your company and modified for each project. Coach your project team members to map this out in more detail with the objectives being:

  1. Shorten time between start of work performed and cash-in.
  2. Improve the customer experience by making the process efficient for them.

For each step know the following:

  • Who is primarily responsible and who is involved?
  • How would you rate your relationship with that person? Will they go out of their way to help you?  
  • What is the estimated timing of how long each step should take? What can shorten it?
  • What specifically is required at each step per the contract, other standards or preferences?
  • What tools are used for each step? 

Change Orders
Change orders are a fact of life in construction. Improve profitability, cash flow and customer satisfaction by effectively managing changes. Build a foundation for success with 12 steps to improve pricing and 11 negotiating strategies for the whole project team....

Related Training
Change Orders
Change orders are a fact of life in construction. Improve profitability, cash flow and customer satisfaction by effectively managing changes. Build a foundation for success with 12 steps to improve pricing and 11 negotiating strategies for the whole project team....

Early Identification as a Trainable Skill
The ability to identify potential changes early is a skill that can be tested, trained, and managed just like a craft skill.
Two Planning Dimensions
Some of the impacts you see on a project are not as clear as a design change, conflict, or obviously changed condition. Some impacts, such as poor project sequencing or congested work areas are hard to notice if you don’t have good tracking systems.
Changes in Construction Survey
Changes are a part of the construction process with many underlying causes. While we have all heard the average of 10% changes on construction projects, it is interesting to look at an industry study for validation.