{"id":163101,"date":"2023-12-06T14:21:22","date_gmt":"2023-12-06T21:21:22","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=163101"},"modified":"2023-12-06T14:21:23","modified_gmt":"2023-12-06T21:21:23","slug":"dont-change-a-construction-project","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/dont-change-a-construction-project","title":{"rendered":"If You Start a Construction Project, Do NOT Make This Mistake"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">When it comes to construction projects, you should always have an incredibly clear scope of work. But first, let\u2019s discuss preconstruction checklists, change orders, and what can go wrong.<\/span><\/p>\n\n\n\n\n\n\n  <div class=\"lg:block\" x-data=\"{ ad_block_block_6570e58a68474: popAds(1) }\">\n      <template x-for=\"ad in ad_block_block_6570e58a68474\">\n        <a\n          :href=\"ad.linkURL\"\n          class=\"no-underline text-black\"\n          x-on:click=\"adClicked('https:\/\/www.biggerpockets.com\/blog\/dont-change-a-construction-project', ad.sponsor, ad.title, ad.id, 'blockAdClicked', 'blockAd', '')\"\n          target=\"_blank\">\n          <div\n            class=\"py-4 border-b flex flex-col flex-nowrap text-sm border-t px-0 rounded-none\"\n            x-init=\"\n              analytics.track('blockAdLoaded', {\n                referrer: 'https:\/\/www.biggerpockets.com\/blog\/dont-change-a-construction-project',\n                sponsor: ad.sponsor,\n                ad_title: ad.title,\n                ad_page_location: ''\n              })\n            \"\n            x-intersect:enter.once=\"adViewed('https:\/\/www.biggerpockets.com\/blog\/dont-change-a-construction-project', ad.sponsor, ad.title, ad.id, 'blockAdViewed', 'blockAd', '')\">\n            <div><span class=\"text-xs text-slate-light block bg-slate-50 p-1 inline-block rounded-md\">Sponsored<\/span><\/div>\n            <div class=\"flex items-center text-sm space-x-4\">\n                <img :src=\"ad.imageURL\" :alt=\"ad.imageAlt\" class=\"h-10 w-10 object-cover rounded-full\">\n\n                <div clas=\"text-sm\">\n                    <span class=\"font-bold block\" x-text=\"ad.sponsor\"><\/span>\n                    <span class=\"text-slate\/80\" x-text=\"ad.description\"><\/span>\n                <\/div>\n            <\/div>\n\n            <div>\n                <span class=\"font-bold\" x-text=\"ad.title\"><\/span>\n                <p class=\"mt-2 text-slate\/80\" x-text=\"ad.body\"><\/p>\n                <span class=\"mt-2 text-themeBlue block mt-2 underline\" x-text=\"ad.linkTitle\"><\/span>\n            <\/div>\n          <\/div>\n        <\/a>\n      <\/template>\n  <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Scope of Work<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Before starting a project of any size, both the property owner and contractor need to be on the same page regarding the larger scope of work and every little detail that goes into the big picture.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">First, when meeting with your prospective contractor(s), you should hand them a written checklist that generally describes your goals and what picture you see in your head. This applies whether you are simply remodeling a kitchen,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rookie-330\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">fixing up a rehab house<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in order to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/how-to-flip-houses\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">flip it<\/span><\/a><span data-preserver-spaces=\"true\">, doing an addition, or building a brand-new home.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This will also allow you to compare apples to apples when getting multiple bids from competing&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/when-to-use-general-contractors-as-a-real-estate-investor\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">general contractors<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;(GC). It\u2019s really difficult to compare bids when the contractors are talking about and bidding on completely different concepts or products.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Product Checklist<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Once you choose a GC for your project, it is very useful to have what I used to call a project checklist. A good GC will ask you to fill out something similar. But a lot of them won\u2019t, so you may need to take charge and start this process yourself.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Include everything\u2014there is no time like now to make sure there are no misunderstandings and confusion when you\u2019re halfway into the job that will cost you time, money, and sometimes hard feelings between you and the contractor.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Even if you\u2019re running your own project, I suggest having a document similar to this. It will just save you time and money, and that\u2019s never a bad idea.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Again, be very detailed. Over four decades of doing this work, most of the issues I had when running remodels or new builds were with the expectation from the customer that I deliver a finished product about which I really knew nothing because they had been so unclear as to their desires or had just forgotten to mention some very important pieces of the puzzle.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For example, if you are planning on ordering a special antique cabinet from Italy that I will be installing as part of the kitchen cabinets, let me know so we can get it here in time, and you won\u2019t blame me for your project not finishing on our projected schedule. Make everything excruciatingly clear, and you will be thankful later.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Change Orders<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here\u2019s an illustration as to why it is so important to have not only a detailed scope of work but also why change orders are so valuable.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I once had a customer on a really large project. It was actually a complete to-the-studs remodel with a couple of additions involved as well\u2014a $500,000 job.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">As the customer and I sat down for our weekly meeting that I required of every customer, I just asked as small talk, \u201cSo, are you happy with the project\u201d? I fully expected a 100% \u201cyes\u201d answer since my company and I were known for our attention to detail and extremely high-end work. I was a bit taken aback when he responded with, \u201cWell, of course, your quality is excellent, but I am disappointed in the schedule running long like it has.\u201d&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">What? This was a customer who, as nice as he was, could not stick to the plan and was constantly amending and modifying it. In my large 3\u201d job binder, we had over 40 change orders at that time.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I answered, \u201cYou know, we have had over 40 change orders to this point, right\u201d? He looked right at me and said, \u201cWhat are you talking about? I haven\u2019t changed anything.\u201d<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">So what is a change order, and why is it so critical? And why do many customers and contractors not use them?<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">When you start a project, you will sign a contract that should lay out, at least in good detail, everything that is expected to happen during this project\u2014what is being done, how much it will cost, when the different phases are expected to be complete, etc. Anything that happens after this that is not in that original document must be addressed in this change order document.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The change order, often referred to simply as the CO, should be on the contractor\u2019s letterhead, have a date, the original contract price, a description of the change, the cost of the change, the additional time that the change will take, and a new contract price. Then it is signed by both the contractor and the owner of the property (or their legal agent). This becomes part of the contract and is usually paid in full at the time of signing. (Note that it is&nbsp;<\/span><em><span data-preserver-spaces=\"true\">not&nbsp;<\/span><\/em><span data-preserver-spaces=\"true\">paid after the CO work is completed but as soon as it is signed).&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But now that we\u2019ve discussed change orders, let&#8217;s never use them, or at least use them as little as possible. Why? Although to you, the customer, they may seem like a small detail, to the contractor, they represent a huge deal: stop work, send the crews home, do the paperwork, order the new parts or materials, etc.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">We all know that there will be changes in any project, whether it\u2019s something unknown that is discovered during demo\u2014like an undersized header\u2014or simply an indecisive customer making changes constantly because they can\u2019t decide (or don\u2019t know) what they want. It is this last type of client that can kill a job and turn a happy job site into a miserable one. So, to the best of your ability, try not to change anything.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_4d284377074d19eeb0c9f5185cd08b23\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_51db4892ab43bce4e1b58b1b86551ded\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=button-custom-event-block_8dfa068d1de395a8d6bea4797c42e24c class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\"\n        x-on:click=\"window.analytics.track('Blog Block | B2C Marketplace Lender Finder', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/dont-change-a-construction-project',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/signup\"\n        x-on:click=\"window.analytics.track('Blog Block | Acquisition | Free Membership Signup', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/dont-change-a-construction-project',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>When it comes to construction projects, you should always have an incredibly clear scope of work. But first, let\u2019s discuss preconstruction checklists, change orders, and what can go wrong. Scope [&hellip;]<\/p>\n","protected":false},"author":613698,"featured_media":163104,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7392],"tags":[],"class_list":["post-163101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rehab-diy"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/163101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613698"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=163101"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/163101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/163104"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=163101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=163101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=163101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}