How to Control Costs and Risks of Construction Change Orders
Construction change orders can quickly push a project over budget because they slow progress and create tension among owners, contractors, and design teams. Fortunately, though, you can avoid most construction change orders with the right partner and careful planning.
James E. Roberts-Obayashi Corporation helps owners reduce risk through comprehensive construction services. It prioritizes teamwork and takes a solution-oriented approach to the work.
Strengthen Cost Estimating to Reduce Construction Change Orders
A good cost estimate helps you avoid expensive alterations later. The fewer mistakes you have early on, the fewer construction change orders you are likely to need.
James E. Roberts-Obayashi Corporation reviews your plans in detail before work starts. Its team analyzes every major part of your project and creates a detailed quantity survey. Doing so helps find missing or unclear details before contractors prepare their bids. Fixing these problems early is much easier than addressing them during construction.
Using current prices is also crucial for reducing change orders. If you use old estimates, you'll end up with a low budget and have to make changes during construction. James E. Roberts-Obayashi Corporation uses current unit prices and actual material quantities to build a budget that you can trust.
It additionally involves subcontractors early to improve your cost estimates. They can point out problems that may not appear on the drawings and provide current pricing based on today's market. With their input, you'll base your budget on real data instead of assumptions.
Owners and architects may have different priorities. Discussing these goals early helps everyone move in the same direction. It also reduces the need for design changes later in the project. Involve everyone during every step of construction to avoid change orders.
Prevent Design Conflicts With Complete Plan Checks and Specification Reviews
Even good designs can contain mistakes. Unfortunately, a missing note or conflicting detail can confuse contractors. When some bidders are unsure about the plan, they'll increase their prices to cover the risk. Other contractors instead make assumptions, leading to construction change orders after work begins.
Conduct a detailed plan review to avoid these issues. James E. Roberts-Obayashi Corporation performs a complete sheet-by-sheet review of construction drawings and specifications. Its experts will check each drawing, index, and dimension to ensure accuracy. During this process, they will look for:
- Missing information
- Inconsistent notes
- Coordination issues between trades
- Design conflicts
- Drawing errors
- Incomplete specifications
Finding these issues early helps avoid expensive corrections and conflict among your teams. Ensure that you have a clear plan to get better bids. Once contractors fully understand the drawings, they can prepare more accurate estimates. They also won't rely on inaccurate guesses or include high contingency costs in their bids.
Detailed construction documents will improve communication throughout the project. Make sure everyone on your team has access to the same information to reduce the risk of error.
Use Value Engineering to Limit Costly Design Changes
Design choices can affect your project costs long after construction is finished. Choosing the wrong material or system will lead to higher repair costs. You may also have to pay for more maintenance in the future and incur unexpected expenses.
Value engineering helps you review your options before construction begins. Instead of making costly changes later, you can compare different solutions early and choose the best fit for your goals.
James E. Roberts-Obayashi Corporation helps owners and design teams review different building systems and materials. It compares each option based on:
- Initial cost
- Quality
- Durability
- Maintenance needs
- Long-term performance
- Warranty coverage
A lower price doesn't always mean better savings. A cheaper material may cost more if it needs frequent repairs or replacement. Always review the lifecycle costs of each option to understand the true value of each choice.
James E. Roberts-Obayashi Corporation provides accurate pricing for each design option. Using the report, you can then make smart decisions before construction starts. You'll know how each choice affects your budget and avoid changes that lead to cost overruns.
By reviewing alternatives early, you can also lower costs without sacrificing quality or durability. Value engineering gives you more control over your project and helps you build better relationships with investors.
Improve Project Coordination and Scheduling to Control Change Order Risk
Poor coordination creates issues and leads to construction change orders. If your teams aren't on the same page, small delays will quickly affect the entire project. So, work with James E. Roberts-Obayashi Corporation to develop a critical-path schedule during preconstruction. The schedule will help you map out project tasks and show how each activity connects. This will help teams plan the work in the right order.
Late material delivery or missed deadlines can affect the entire construction schedule. James E. Roberts-Obayashi Corporation helps prevent these problems by creating a clear plan before construction begins. It coordinates milestones by involving:
- Owners
- Designers
- Contractors
- Suppliers
Its team liaises with all stakeholders to ensure that they understand their roles in the project's success. Early scheduling with smart solutions like Primavera helps you identify risks and detect scheduling conflicts before they affect the project.
Construction conditions can change during the project. For example, bad weather can stall progress, causing you to rethink the initial plan. The experts at James E. Roberts-Obayashi Corporation regularly review and update schedules to match current progress. Adjusting the plan as needed helps the team respond quickly if something goes wrong. They also enable contractors and owners to better manage construction challenges through proactive measures. For example, if a material delivery is delayed, James E. Roberts-Obayashi Corporation can help adjust the schedule and identify other tasks that can proceed. Its team can help you keep the project active while reducing downtime for workers and contractors.
Accurate scheduling is critical for planning your funding needs. When you know when you'll incur major project costs, you can manage your budget efficiently and avoid unexpected expenses.
Reduce Construction Change Orders With Better Planning
Construction change orders can increase costs, delay completion, and stress your team. While some changes are unavoidable, you can reduce most risks with proper planning. Get accurate cost estimates and create detailed plan reviews to avoid change orders, and assess the short- and long-term costs of each material preconstruction.
By choosing James E. Roberts-Obayashi Corporation’s cost-estimating solution, project managers gain a powerful tool to navigate the complexities of multi-family housing construction. It helps anticipate cash flow needs, support lender and grant planning, and reduce mid-project surprises. Its team’s commitment is to provide reliable, market-aware cost data that enhances project success and stakeholder confidence. Discover how this solution can streamline your project management process and ensure that your affordable housing initiatives stay on track and within budget.
