A contractor explains why you shouldn't start work on a change order without payment guaranteed first. Once you've committed resources, you lose leverage if the client refuses to pay. Train clients upfront to approve variations quickly, and always secure payment assurance before your team moves.
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Have you ever been asked to proceed with a variation or change order on a construction project but you're not sure if they're going to pay? Well, if you have, this happens all of the time, right? So they basically go ahead and they go, hey, just go ahead with this work, the contract says you need to proceed, we'll agree the cost after. And a lot of times when you go to agree the cost, all of a sudden, hey, we're not paying for that, you should have done it, blah blah blah, and puts you in a terribly weak position. There's a couple of things you need to do. One is you need to train them to approve variations quickly from the start of the project. And if they're not doing that, then you need to start implementing, yes, no problem, we're going to go ahead and do it, but we're having struggling resourcing for this additional thing. You really don't want to commit people and commit money until you know that they're going to pay, because otherwise it's going to impact your cash flow. And ultimately, cash flow is king on a construction project. As soon as your cash flow gets tightened, then you're in a weak position. That's not what we want for you.