four steps: 1. Giving proper notice of change to the contractor 2. Receipt of direction to proceed as described in the subcontract 3. Written agreement on entitle- ment to a change order 4. Agreement on the price or pric- ing method The steps do not always occur at the same time, but when subcon- tractors proceed and incur costs without all four steps being satis- fied, they are at risk for nonpay- ment. Insisting on following the process as described in the agree- ment puts subcontractors in the best position to collect payment for the change. When a contractor is unclear in responding to a request for change, a simple communication asking for clarification should be sent: Thank you for the authorization to proceed on this Request for Change. It is our understanding that this work is a change to the sub- contract and a Subcontract Change Order will be subsequently issued for the price quoted in our Request for Change dated ________. Please confirm that our understanding is correct so that we can proceed, or if we have misinterpreted your direction, please clarify. With this response the contrac- tor is forced to come clean with his intent and the subcontractor has solidified its position to collect payment. If a contractor will not confirm or becomes agitated in his position, there is a reason. Either he does not have the contractual authority to authorize the change, or has not received the approvals necessary to grant merit. Remember, contractors’ proj- ect managers will often sway subcontractors to proceed prior to approaching the owner. Subcontractors will vastly improve their chances of collecting pay- ment by understanding the con- tract, and being alert and disci- plined in forcing the contractor to follow the agreement. —————————— Ron Meler began his career in construction working as a carpenter, and spent the next 30 years work- ing his way through the ranks of prominent general contracting firms. Eventually he became vice president of operations for one of the largest self-performing general contractors in the Western United States. In 2006 he opened RW Meler Consulting. As a construction operations con- sultant he has provided services in preconstruction scheduling and planning, project realignment and dispute resolution for well over 60 clients. Ron has taught Construction Ethics, Law and Contracts as well as Construction Scheduling at San Diego State University in the Construction Engineering Program. He has exten- sive experience in training workshops for the development of employees in theconstructionindustry.Reachhimat rwmelerconsulting@gmail.com or 619-723-0487. BUSINESS FEATURE –––––––––––––––––––––––––––––––––––––––––––––––––– 66 TileLetter | September 2018