This Podcast Is Episode Number 0385, And It's About Contractor Clients' Four Critical Words That Leads To Change Orders Are you sick and tired of customers continually changing stuff on you and creating delays or extra work? Is your customer leaving you "love notes" regarding minor changes they would like to make on the counter or someplace you can easily find them when you first arrive in the morning? Or the never-ending chain of emails. Or greeting you with "I/we thought we would like to have...." Do these notes, emails, or greetings send you into a mental or alone verbal rant about why they can't leave you alone to get your work done? Are you concerned they expect you to do the additional work for FREE, NO CHARGE, NA-DA, ZIP, ZERO? You needed to be compensated for your time and your crew's time, and you need to do it right away. Listen to your clients and watch out for these four critical words at the beginning of their sentence: While you're here anyway That should be included Since it's open anyway You get it wholesale It's a small change While we're at it It's easy for you I have an idea I need a favor Contractors hear these all the time. Part of the root cause can be traced to a mild case of "Stockholm Syndrome," where contractors feel their cash flow may be held captive by their customers or clients. They do not want to upset their "Captor-Customers," and so they tend to do more than they should. I have a  to share with you: "Hammer, Hammer, Who Has The Hammer?" In this case, the "Hammer" is a change order. This is a bit harsh; however, if you are a contractor, you live in a harsh reality, and the sooner you realize that and take steps to protect yourself, your company, and your family's financial future, the better. 80% of your customers are going to play fair. You do what you promise, and they will pay you, no questions asked, and are the foundation for high-profit repeat clients. 15% of your customers will try to get a bargain - little extras, minor changes. These are marginal customers you will want to replace with high-profit repeat clients. 3% of your customers are "Grinders" and will try to take all your profit by telling you too "Sharpen Your Pencil" which means do the job for your hard cost for material and whatever you pay your employees in gross wages with no allowance for overhead costs. 2% of your customers will do everything to lie, cheat, and steal. This is harsh but true from my experience as a contractor and now as a construction accountant. I have seen it happen to hundreds of contractors and clients, and more than once in some cases. There Is A Hall Of Justice, But There Is No Hall Of Fairness No law says there have to be change orders. A lawyer may enforce a verbal contract; however, for contractors, unless you have something in writing, it is my opinion that construction contracts are fixed in stone. If a deal states, "I will pay you $X to do Y scope of work", your customer cannot force you to do more, and you cannot do less than agreed. Change orders can protect you and your client. Change orders give contractors leverage because you can refuse to make the change unless you are paid. Six Tips To Help Contractors With Change Orders 1. When The Four Important Words Are Spoken STOP, LOOK, AND LISTEN! If it looks like a duck (change in scope of work) walks like a duck, quacks like a duck, it is a duck (change order). There is no such thing as a no-cost change once you understand  The little leaks sink the ship (construction company's) because they are "no big thing" a simple "freebie" to maintain "goodwill" so that in time the contractor can go to Goodwill charity for a handout. In many cases you are dealing with a customer who has a "Champagne Diet On A Beer Income" and if your customer understands that something is extra and how much it will cost in time and money, they may change their mind or at least they will know ahead of time how much and when they need...