CHANGE ORDERS FROM GC PERSPECTIVE

Most of ASAMW's GC Partners responded to these questions:

• List three things that Subs can do better to improve the change order process.
• List three things that GCs can do better to improve the change order process.

The responses are being reviewed by an ASAMW Task Force headed by Evan Winston with Hercules Fence.  Some highlights:

More on Change Orders

To follow up on the event of May 2nd in which owners discussed their positions and recommendations to prevent Subs from financing change orders (see previous edition of this newsletter), there will be an event at a time and place to be determined in September to discuss the challenges that GCs and Subs face in addressing change orders with the Project Managers of ASAMW GC Partners. Please reply to this email with your suggestions on how best to educate GC and Sub Project Managers on this issue.  

As promised, there is a write-up of the May 2nd Owners’ event developed by our facilitator, Scott Peper of Mobilization Funding. Click here for the write-up.

Let’s Talk About Change Orders

Owners – Last Tuesday, a panel of private owners discussed change orders with the major subs and GCs in our area. A complete write-up of the takeaways for each group - Owner, General Contractor, and Subcontractor - will be distributed soon. Some preliminary points made were:

• Owners are also concerned that subcontractors finance construction change orders. Although no solution was developed, best practices encouraged are:
• Owners and GCs should hold regular meetings with subs to communicate change order status and what to expect.
• The status of change orders should be transparent to all involved.
• Subs should escalate non-payment beyond the GC’s Project Manager.
• GCs should provide clear and explicit Change Order requirements.

The ASAMW Board met on Wednesday and is developing the next steps that need to be taken to get subcontractors out of financing construction change orders. 

Where will you be on May 2nd?

Change order payment is one of the most important issues facing subcontractors today.  You, your colleagues, and others are not only invited but expected to attend Owners’ Expectations on Change Orders.  Why be there?

• Subs and GCs need to be part of the solution to slow pay on change orders.
• Your company needs to be part of the solution to slow pay on change orders.
• Network with all the top GCs and Owners in the DMV.
• We all need to understand each other’s perspective on this important issue.

Please attend and bring others in your company who sweat over change orders each day. Click here to register.