Every contractor has their horror stories of projects that bled money, dragged on for months or wound up being a money pit. And while there can be a plethora of reasons for these construction project blunders, many can be attributable to scope creep.
Let’s explore how scope creep in construction can drain off your profits.
How you wound up at this point
One sure sign of failure is when the language used in contracts wasn’t clear. Well-designed contracts detail exactly what will and will not be included in the construction project. Meanings can be subject to interpretation if ambiguous language fails to accurately define the terms of your agreement.
Poor communication
As the GC of a project, you must maintain clear channels of communication between you, the client and all subcontractors on the job. The chain of command must be clear, as the buck ultimately stops with the GC of the project.
Failing to manage change orders
Very few projects get completed without changes at some point. But how those changes get managed is of utmost importance. Make sure that all subs are aware of the change order approval process to avoid unpleasant surprises.
Unmanaged expectations
One of the goals of GCs and project managers is to deliver a solid product that meets expectations. But in the real world, construction companies can bump heads with clients because the goals may be unrealistic or change over the course of a project.
There’s nothing wrong with trying to please a client. But problems occur when clients want GCs and subs to make substantial changes to the work orders, e.g., moving a load-bearing wall.
Don’t let scope creep derail your projects
The best way to fix a problem is to prevent it. If you are worried about the problem of scope creep, get a professional review of your contracts to eliminate any weak areas that could contribute to the fall of your bottom line.