Making Money with Change Orders & Allowances
Discipline: Codes & Standards
Learn change order and allowance contractual policies and procedures that can help avoid disputes and debates and boost profits and operating efficiencies. Learn simple methods to determine breakeven cash costs for overhead, supervision and profit-per change, per allowance. Review methods to generate "calculated" allowances that define monetary amounts, spell out exactly what is and is not part of the allowance. Explore change order management that keeps you in control, allows adjustments to the completion schedule and assures payment for estimating and assembling proposed changes that are cancelled or denied. Review seven different change order examples that demonstrate tips, edits and policy revisions to that result in organization and forward movement to successful project completion.
1. Explain contract wording on change order and allowance policies & procedures
2. Discuss receiving payment for requested changes
3. Identify preparation of calculated allowances to separate your company from the competition
4. Evaluate change order and allowance examples
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