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Managing Variations and Scope Changes Print

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Where contractors lose money.

WHAT A VARIATION IS

Work different from what was priced.

WHY IT MATTERS

It consumes time and materials that were not included.

WHAT COMMONLY HAPPENS

The client asks for a change The contractor does it to be helpful Nobody prices it The contractor absorbs the cost

WHY THAT PATTERN PERSISTS

Raising cost feels confrontational during the relationship.

WHAT IT PRODUCES

Jobs finishing at a loss.

WHAT TO ESTABLISH AT THE START

That changes are priced before they are done.

HOW TO RAISE ONE

Acknowledge the request

State what it affects: cost and time

Provide the price Obtain written approval

HOW QUICKLY

Immediately, before doing the work.

WHY IMMEDIATELY

Retrospective charges are disputed.

WHAT TO PUT IN WRITING

Even a message confirming the change and the price.

WHY

It is sufficient, and it prevents the dispute.

WHAT TO DO ABOUT SMALL CHANGES

Record them, even if you do not charge.

WHY RECORD THEM

They accumulate, and the record supports the conversation when they do.

WHAT TO DO ABOUT CLIENTS WHO RESIST

Explain the effect plainly, once.

WHAT TO NEVER DO

Continue absorbing changes to preserve goodwill.

WHY

The goodwill does not survive the loss.

WHAT TO TRACK PER JOB

Variations raised, approved and paid.

WHAT THAT REVEALS

Whether your original scoping is accurate.


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