Change Management – The Cost of Procrastination

There is an old saying that goes something like, “The only thing certain about construction is that there will be change.” We reserve our fleet of belly dump trucks a month in advance, diligently working toward that must-make pave date, only to get rained out. We spend a week on a work plan for a retaining wall, order all of our materials, and then encounter some unknown utilities the moment that we put a bucket in the ground. We bolt-up all of our water line fittings, start to trench, and discover multiple underground conflicts with the alignment. Change is just part of the business, and managing that change is one of the key success factors for any given project.

As professionals, we take great pride in the development of prompt solutions to keep the project on track, but we often put cost entitlement on that back-burner. It’s not because we want to, its simply a matter of time and resources. The project has to keep moving, so we focus on a fix and worry about the cost later. We think to ourselves that we’ll get to it next week, but then another issue comes to light. We fix that issue and now we are two changes behind with regard to cost realization. The cycle of procrastination continues throughout the project life cycle, and now we have a huge laundry list to tackle. So – what’s the big deal?

1.) As a contractor, you’ve been financing the cost of the change throughout construction.

2.) As an owner, you don’t have a good handle on the status of the project budget.

3.) The details of the change get lost over time.

4.) The project closeout period takes substantially longer.

5.) Delayed cost recognition is more likely to lead to escalation and claims.

Dynamic is here to help your team with change management as it happens. We’re experienced in Change Order development for contractors, as well as Change Order review for project owners. We are strategically focused on relationship building, client satisfaction, and continuous improvement. We abide by our core values in all aspects of our business, and we refuse to accept the status quo. Going above and beyond is standard practice at Dynamic, and we promote a culture of innovative teamwork. 

It’s the Dynamic way.