Benjamin Franklin’s Lesson for Home Construction Contractors
Here’s a lesson for today’s construction contractors from our nation’s founding fathers.
“When you’re finished changing, you’re finished.”
When Ben Franklin said this, he very well could’ve been talking about construction. Because changes happen on just about every project.
No matter if the job was designed by an architect, the homeowner, or your staff, something will deviate from the original plan once work gets underway.
And when these inevitable changes arise, a contractor needs to document the cost and time impacts to the homeowner.
That’s not a suggestion or a best practice. In the State of Ohio, it’s the law.
Whether your project is a small remodel or the full-on build of a new custom home, Ohio law requires any changes in the project scope, time, and/or price to be made in writing.
There are some exceptions. For example, if the customer states in writing at the time of contract that she or he does not need project changes in writing.
However, since communication failure is the number one cause of project failure in home contracting, best practice says you should document changes in writing on every project, regardless of whether they are required.
While documenting changes can be time-consuming and challenging to track, they are easier now than ever before.
Project management apps, email, and even text messages make communicating changes simple and fast. (I personally hate using texts for project communication, but they can work in a pinch.)
Even better is to adopt a simple process to communicate changes on a job internally within the company and to designate someone who documents the change and the cost and time impact to the customer, and who obtains their agreement before proceeding with the changed work.
As Franklin also said, “An ounce of prevention is worth a pound of cure.” Having a process to document and communicate changes to customers is your ounce of prevention.
If you’re a home construction contractor and would like help with your residential construction contract, fill out our contact us form. Reference this article and you’ll get a complimentary consultation with one of our legal team members.
You can also find more related information in our Guide to Avoiding Residential Construction Contract Nightmares.