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Collecting payment for change orders isn't difficult, as long as you have a clear process and you make clients aware of it early in the remodeling process.
Remodelers can save themselves a lot of trouble by ensuring that they define a clear change-order process and closely adhere to it.
TIM FALLER: Should you ask your lead carpenter to estimate and present change orders?
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Pre-construction preparation using a detailed line-item spreadsheet helps build a more accurate estimate and reduce the number of change orders.
Tim Faller: There really is no such thing as a fast track. Skipping steps from planning to production can be costly.
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By leveraging the day-to-day contact your production staff have with homeowners, you can build trust, improve profits, and sail through change orders.
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What do you do when you have a client who is draining your business as well as your mental resources?
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Jeff Berkowitz, project coordinator at Lawrence Murr Remodeling, Jacksonville, Fla., and his team prefer to convert large change orders into separate jobs. This allows them to use the company's full process to develop the project. The "additional work authorization" offers several benefits.
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A quick primer on the best practice of collecting monies owed.
Getting clients to make design decisions well before building helps to streamline the remodeling process and cut down on change orders and schedule glitches. Now there's a Web-based system to help with this process: RemodelVision.