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called Making Money with Change Orders &
Allowances. Some of the key points he shared
include:
� Determine How Much You’re Worth
First, specify each step of the change order
process, no matter how small, and decide
how much time it takes to complete each
step. Then, determine exactly what you need
to charge by the hour, the day and the week
to generate enough income — including
administrative fees.
Dixon advises never to negotiate on your
Finding Hidden Profits rate and to establish a minimum fee for each
From Change Orders change order to reinforce the seriousness of
each request.
“People always tell me, ‘Dennis, I can’t do that.
Is work-related stress causing you heart burn, People will get mad.’ But I tell them they don’t
high blood pressure or even hair loss? There’s a have to explain themselves. By [adding the
chance that improving your health might — to cost of processing the change order] you’re
some degree — involve improving your contracts. not a criminal. That’s how you stay alive in this
Many builders have contracts and change business.”
order policies that leave too much room for � Do Not Proceed Without Formal
interpretation and an excessive amount of client Client Approval
flexibility. That could potentially add stress for Each change order is a mini contract. It must
the builder that could have been avoided. include a decision due date, which if it isn’t met,
Dennis Dixon is the owner of Dixon Builders in will result in the change order being cancelled.
Flagstaff, Ariz. Throughout his 34-year career in Dixon is not a fan of clients sending and
home building, he’s learned the key to finding approving requests electronically. In his
hidden profits — and maintaining his sanity — is experience, those methods can make the
in change orders. But it requires having a refined process seem less serious to the client and, in
contract that thoroughly explains your change fact, encourage them to make more change
order policies. orders.
“Your contract doesn’t have to be fancy. It just “Getting client signatures on change orders
needs to be in plain, simple English, clearly sometimes feels like you’re asking them to
stating what the builder will and will not do, and reach into a bag of rattlesnakes,” Dixon said.
what will be required of the client,” Dixon said. But obtaining that signature first will save the
“It’s incredible how much time and effort you can builder from running into significant issues
save by having things spelled out in the contract down the road.
beforehand.”
Last month during the 2018 International � Document everything, EVERY TIME
Builders’ Show, Dixon led an education session Dixon says it doesn’t matter what you use to
20 MARCH 2018 | GREATER SAN ANTONIO BUILDERS ASSOCIATION
