Implementing efficient payment solutions for your remodeling business’s change orders is vital to maintain profits and client satisfaction. In this article, learn how Truss offers robust payment solutions for remodelers handling change orders.
Why Change Orders Matter to Remodelers
Remodeling is all about change. From a kitchen remodeling project to a complete retail space renovation, with all of this change, chaos can ensue. Clients might decide that they don’t like the original plans, you might discover an unforeseen load-bearing wall during demo, or the project might be faced with delays because of supply chain issues. Anything can happen to a remodeler; you’re well aware of that. To tame this chaos, change orders are essential.
Additional profit potential
Firstly, change orders offer remodelers profit opportunities. If a remodeler handles a change order properly, it can lead to financial gains by justifying additional costs. It’s like a blessing-in-disguise. Sure, you have more work to do, but you could increase profits for your business.
Reputation-builder
Secondly, it helps you and your remodeling business build its reputation. Say a client wants to change the plan for their kitchen remodeling and move their stove to the other end of the room. That one move is going to change the entire layout that you already had designed. But that’s what the client wants. You revise the layout and send a change order to them. That client is going to be happy that you’ve listened to them and got the revision process implemented smoothly. That increases your reputation and the chances of word-of-mouth from clients.
Change orders are helpful and essential for remodelers, however, there is a flip side to them. Left unmanaged, change orders can lead to increased costs and project delays. Updating and communicating change orders with clear documentation and explicit approval from clients will avoid these further problems. We’ll discuss these and other best practices for handling change orders next.
Best Practices for Remodelers Handling Change Orders
Managing change orders effectively is all about communication, documentation, and planning. Successful remodelers know that setting clear expectations with clients is the starting point. Here are the other best practices for remodelers who are handling change orders:
Be meticulous
Document every change meticulously. This means keeping a precise record of all adjustments, no matter how small. Documentation provides a clear trail and can prevent misunderstandings that lead to disputes.
Obtain approvals promptly
You must make sure all parties sign off on changes before moving forward on a remodeling project, and you want to do this as quickly as possible. For instance, if a client informs you on a Friday that they’ve changed their mind and want stone on their home’s facade rather than brick, work as quickly as possible to get that change order to them that same day or the next, even if it’s a Saturday. They’ll be more motivated to approve the change order quickly while the thought is fresh in their minds. And an added bonus: your promptness will win you points from the client.
Using construction management software can streamline this process. Which brings us to the next best practice…
Leverage software platforms
Use construction management software for real-time updates and transparency for change orders. Platforms like Clearstory, Fieldwire, and SiteMax offer features that allow you to be meticulous with documentation, communicate clearly with clients, and obtain swift approval. Then with Truss, you can send quick invoices and get instant payment processing–with funds available in your account to spend right away.
For those remodelers looking to integrate technology seamlessly, learn strategies for streamlining the rollout of construction project management software.
Set clear expectations
As stated first–and what can’t be stated enough–clear and open communication with clients about the revised project scope and costs is a top priority.
The Efficient Payment Solutions Truss Offers for Remodelers Handling Change Orders
Efficient payment solutions play a crucial role for remodelers dealing with change orders. Managing these financial adjustments ensures projects continue without hiccups, especially with respect to cash flow and timelines. Here's how efficient payment methods through Truss supports remodelers:
- Speed
Using Truss as your all-in-one business solution affords you the opportunity to get paid faster.
Not only does Truss offer the ability to accept fast payments like ACH transfers and credit card processing, but Truss allows your business instant access to those funds to spend. This can help alleviate a lot of the stress associated with cash flow.
Even paper check processing is faster with Truss. Just snap a picture of a client’s check with your phone and it’s deposited in your Truss account.
For more insights on alternatives to traditional checks, explore our discussion on the best alternatives to checks for construction companies.
- Security
Truss takes security seriously.
Not only do digital payments via Truss reduce the risk of the fraud associated with paper checks, but Truss employs additional security measures for their customers. These include:
- Bank-grade security
- SOC 1 and SOC 2 audited
- Cloud development best practices
- In-house support
- 256-bit SSL encryption
- NSF prevention
- Secure bank connections
View Truss’s security page to learn more about these measures.
- Convenience
In addition to Truss offering fast and secure payment solutions to remodelers handling change orders, it provides convenience for both you and your customers. Use Truss to include payment links right in the invoices you send to customers. Add a payment portal to your website. And even add a payment button to your emails to clients.
Another convenient feature of Truss is allowing you to implement progress payments, which is another way to reduce the stress related to your business’s cash flow.
Discover how adding a payment portal to your contractor website can further enhance payment efficiency and speed.
- Cost-Effectiveness
Using Truss as your payment solution reduces processing fees. You can accept ACH and credit card payments for free.
Not to mention, the time you’ll save not having to collect and deposit paper checks, or paying an employee to do the same. Time is money, after all.
Avoiding Payment Delays
Failing to get prompt approvals to change orders can slow a remodeling project from moving forward. But payment delays can stop you from completing a project and affect your cash flow. Here are some other tips to avoid delaying receivables via a Truss Payments account and elsewhere in your operations:
Clear payment terms
Start with clear payment terms. Make sure your contracts spell out when and how payments should be made. With change orders, state explicitly what you have updated and how those timelines and costs align (or differ) with previous agreed-upon terms.This clarity sets the stage for smooth transactions without misunderstandings.
For more detailed strategies on structuring contracts and payment terms, check out Truss’s article on the best practices to avoid payment delays for your contracting business.
Issue timely invoices
Don’t wait until the end of the month. Send out invoices as soon as work is completed. This speeds up the payment process and keeps cash circulating.
Truss makes it easy to send invoices via text message or email, with a payment link built right in. Learn how to enhance your invoicing process with our guide on sending construction invoices that ensure timely payments.
Use payment reminders
Gentle nudges can do wonders. Automated reminders ensure that payments don’t slip through the cracks, keeping everything on schedule. Truss makes it easy to send reminders to clients with unpaid invoices.
Utilize digital payment solutions
Digital payment solutions are a remodeler’s best friend for handling change orders. They simplify the payment process, offering flexibility and reducing missed payments. Platforms like Truss streamline transactions with online payment portals, making it easy for you and your clients to settle accounts quickly.
Implement progress payments
This is especially beneficial for larger remodeling projects. Say you’re putting a large addition on a 10,000 square-foot home and it’s going to take months of work–not to mention there will be a lot of revisions and change orders. The best way to maintain steady cash flow in your business account is to implement progress payments for project milestones. Truss makes it easy to implement progress payments without the headache, so you can focus on the important aspects of your project.
Learn more about implementing progress payments for your remodeling business.
Maintain open communication
Open communication is the purpose of change orders. Make sure everyone’s on the same page about new payment terms and schedules. This helps minimize misunderstandings and keeps delays at bay, even when a project has been revised.
Read On...
To enhance your business’ financial tracking, reduce manual work, and support more strategic decision-making, read our article on streamlining accounting processes.
The Bottom Line
Change orders matter to remodelers because they offer an opportunity for additional profits and to solidify a reputation. However, handling change orders can cause a lot of headaches from extra administrative tasks. With best practices such as meticulous record-keeping and utilizing platforms like Truss, you can streamline change orders with ease to avoid payment delays.
Give Truss Payment Solutions a Try!
Book a demo with the Truss Team or sign up today for a Truss account to experience how it offers remodelers fast and efficient payment solutions for handling their change orders.
