Changes - Early Identification is Always Better

Early identification of changes and conflicts is the first key to success.

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The capability to identify changes and conflicts early in the process is a combination of organizational structure, systems, management, training, and coaching. 

Change Management: Early Identification of Changes and Profitability. Earlier is Always Better. Profit margin, cash flow, schedule, and customer satisfaction tend to all decline the later changes are identified in the phase of construction (before, during, after/near completion). Example of an electrical power plan not matching kitchen equipment drawings.

  

Keep in mind the problem-resolution cost pyramid for identification of changes as an example. 


 

In general, the earlier you can identify changes and conflicts, the higher the customer satisfaction, profit margin, and cash flow with a faster schedule.  

Which Project Manager in your company is best at early identification? Which Estimator? Field Supervisor?

What can you do to close the gaps between them and others on your team?

Change and conflict identification are trainable skills.

Scalability is not about what one person can do on your team but what the collective average performance capabilities are. 


Changes - Early Identification is Always Better
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
Changes - Early Identification is Always Better
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....

Resource - 2 Second Lean
Dozens of practical and fun ways to save a few more seconds each day. 3 minutes per day of additional productive time on tools (ToT) equals about a 1% labor savings - or $10K for every $1M in job cost labor. Helps develop a continuous improvement culture.
Problem-Resolution Cost Pyramid - Earlier is Always Better
An easy way to visualize the cost of problem resolution at different stages of construction is with this pyramid. The cost of the problem is the cost of the problem (1X). Finding it ahead of time minimizes the costs and maximizes customer satisfaction.
Change Order Profit Improvement
A 10% improvement in change order pricing for a $50M per year contractor will add $500K to their bottom line. This is not about simply marking up the change more, but rather, including the many costs that are typically missed or undervalued.