Change Orders

[jmsbrush]

Every time we do a change order, we always get a signature from the proper person who are allowed to make the change order.

It never seems to fail though, when its time to collect, its always hard.

 

[LEO2854]

Every time we do a change order, we always get a signature from the proper person who are allowed to make the change order.

It never seems to fail though, when its time to collect, its always hard.

yes everyone thinks Electrical work is FREE
But when i do a change order i give a bill when finished and ask for a check on the spot. It helps

 

[sparky 134]

My brother had a GC who started a new policy of having his field superintendant's sign all Work Orders with "My signature only verifies the work was performed." In other words, my signature doesn't say I will pay for this work, only that the work was performed.

At the end of the project the GC tried saying his field superintendant's are not authorized to sign field Work Orders therefore no payment.

No problem, my brother contacted the owner and asked where he should send legal correspondence since he was filing a mechanic's lien against the building due to the GC's non payment.

Ta-da, payment was sent by the GC.

 

[growler]

My brother had a GC who started a new policy of having his field superintendant's sign all Work Orders with "My signature only verifies the work was performed." In other words, my signature doesn't say I will pay for this work, only that the work was performed.

At the end of the project the GC tried saying his field superintendant's are not authorized to sign field Work Orders therefore no payment.

No problem, my brother contacted the owner and asked where he should send legal correspondence since he was filing a mechanic's lien against the building due to the GC's non payment.

Ta-da, payment was sent by the GC.

That method will not work every time. Before performing any work on a change order it's important to find out just "who is authorized" to sign a change order and get their signature on the document ( change order).

The same thing goes for work orders. If a store manager or superintendant is not an authorized agent then find out who is.

A work order or change order is a legal document with someone that is authorized agreeing to pay for work performed.

 

[satcom]

That method will not work every time. Before performing any work on a change order it's important to find out just "who is authorized" to sign a change order and get their signature on the document ( change order).

The same thing goes for work orders. If a store manager or superintendant is not an authorized agent then find out who is.

A work order or change order is a legal document with someone that is authorized agreeing to pay for work performed.

Our contract has a section that must be completed, where the person authorized information is inserted, also the terms of change order payments should be listed in this section of the contract.

 

[stevenje]

At the end of the project the GC tried saying his field superintendant's are not authorized to sign field Work Orders therefore no payment.

It should be written in your contract on who can authorize change orders for the GC.

 

[zbang]

The change order ought to say something like "My signature represents that I approve the execution of this work, approve payment for this work, and that I am authorized under existing contracts and agreements to do so."

 

[Sierrasparky]

Any suggestions on how to deal with a customer who fails to sign change orders but demands the work to be done. Meaning you will get a fax or a email stating they recieved the change the work is wanted but does not put his signature on the line.

Later the owner wonders why work has not progressed on that portion. Then gets upset and threatens you for holding up the job.

The weird thing is this has happend many times. Sometimes I just want to progress on the job and keep everyone happy and deal with those issues later after I have successfully completed that portion of the job.

Any tips?

 

[btharmy]

Nearly every GC trailer or truck has a computer. Simply ask that all change orders be submitted by email to your office. Then everyone has a copy of what was requested and by whom.

 

[jmsbrush]

Ok, just to clarify my situation. I have all contracts in place. I have signatures of who can make the change orders. Change orders were made per the customer's request to the GC.
After the customer received the prices, the customer of the GC is the one not wanting to pay for all the changes. I'm waiting on a conference call. When I get updated I will let you know.

 

[LarryFine]

It's no wonder I hate the business side of our work as much as I love the wiring. :roll:

 

[iwire]

It's no wonder I hate the business side of our work

It is awful, I hate it.

 

[satcom]

Ok, just to clarify my situation. I have all contracts in place. I have signatures of who can make the change orders. Change orders were made per the customer's request to the GC.
After the customer received the prices, the customer of the GC is the one not wanting to pay for all the changes. I'm waiting on a conference call. When I get updated I will let you know.

If your contract is with the GC, then he needs to pay for the work he signed for, I would recommend not entering in a discussion with his customer, that will just fan the flames, I hope you priced your change order items at the time they were requested.

 

[ceb58]

Ok, just to clarify my situation. I have all contracts in place. I have signatures of who can make the change orders. Change orders were made per the customer's request to the GC.
After the customer received the prices, the customer of the GC is the one not wanting to pay for all the changes. I'm waiting on a conference call. When I get updated I will let you know.

If the customer wanted it and went through the GC and he approved it then it is up to the GC to make sure payment is made. It could be the GC has added xx% to your charge and now the customer has sticker shock.

It's no wonder I hate the business side of our work as much as I love the wiring. :roll:

That is the truth

If your contract is with the GC, then he needs to pay for the work he signed for, I would recommend not entering in a discussion with his customer, that will just fan the flames, I hope you priced your change order items at the time they were requested.

That is what is in my contracts if they want a change/add it is priced on the change order before any thing is done. That way if they see the price and decide it is not worth it or will strain the budget they can decline it on the spot and it leaves no room for argument in the end.

 

[jmsbrush]

All good advice guys. Thank you.

 

[LEO2854]

It's no wonder I hate the business side of our work as much as I love the wiring. :roll:

It is awful, I hate it.

working for GC's is the worst,I try to work directly with the owners verses GC's
it helps . GC's = Games and smoke and mirrors

 

[jmsbrush]

Hey guys, Here is the update, I got back in town yesterday, all money for change orders will be paid.

 

[rodneee]

for us it seems like if a change order is generated in the field we do not get paid as there are always problems...however if they come from the GC's main office we always get paid...i just take what i can get and make it a piont not to chase bad money...

 

[renosteinke]

As I see it, you have two avenues on the job, and both involve the final customer.

First off, most jobs have a 'retention' that is not paid by the customer to the GC until AFTER all the subs have been paid. You simply don't give the GC a release, and inform the customer why not.

(Sure, GC's love to try to pay you after they have received the retention, but that's not the job they agreed to!0

The second is to file a claim / lien on the property. That's what liens ar for. Many a sub (or supplier) has forced a customer to pay twice - once to the GC, and once to the sub directly. Most often the customer has a retention, or other means to pressure the GC.

All the GC has in his corner is the hammer of "future work." That's not likely to be worth having, if you won't be paid for it.

As for the "my guy wasn't authorised ..." red herring, that's the sort of things lawyers have fun with. If it's the same guy signing for materials, signing time sheets, scheduling crews, etc ... lots of luck with that one. The guy's blowing smoke - and that's a good reason to not do business with him ever again.

I can't speak for others, but I'm in the trade to MAKE things, not to debate them. I really have no desire to deal with game-playing hacks. Oddly enough, the game-playing always seems to come from two types of guys: the guy who has given all manner of other clues that he's not the most professional operation (lack of equipment, poor scheduling, 3rd-rate crew, etc.), or the "Big Corporation" that practically answers their phone with 'we're big, you're little, so kiss our tuckuss, you serf.' In either case, you've been warned.

 

[satcom]

As I see it, you have two avenues on the job, and both involve the final customer.

First off, most jobs have a 'retention' that is not paid by the customer to the GC until AFTER all the subs have been paid. You simply don't give the GC a release, and inform the customer why not.

(Sure, GC's love to try to pay you after they have received the retention, but that's not the job they agreed to!0

The second is to file a claim / lien on the property. That's what liens ar for. Many a sub (or supplier) has forced a customer to pay twice - once to the GC, and once to the sub directly. Most often the customer has a retention, or other means to pressure the GC.

All the GC has in his corner is the hammer of "future work." That's not likely to be worth having, if you won't be paid for it.

As for the "my guy wasn't authorised ..." red herring, that's the sort of things lawyers have fun with. If it's the same guy signing for materials, signing time sheets, scheduling crews, etc ... lots of luck with that one. The guy's blowing smoke - and that's a good reason to not do business with him ever again.

I can't speak for others, but I'm in the trade to MAKE things, not to debate them. I really have no desire to deal with game-playing hacks. Oddly enough, the game-playing always seems to come from two types of guys: the guy who has given all manner of other clues that he's not the most professional operation (lack of equipment, poor scheduling, 3rd-rate crew, etc.), or the "Big Corporation" that practically answers their phone with 'we're big, you're little, so kiss our tuckuss, you serf.' In either case, you've been warned.

Good Post!