All For Contractors

We’re excited to invite you to this month’s Q&A with Construction Attorney Kristen Shields! This session from 3:30 to 4:15 CST will dive into the critical topic of OSHA Multi-Employer Liability, covering key areas that affect all hiring contractors and their subcontractors.

During the Q&A, Kristen will discuss:

1) The four types of employers involved in multi-employer liability: Correcting, Controlling, Creating, and Exposing.
2) The citation process, penalties, and impact on your business.
Ask Kristen questions in real time during the Q&A portion of the session.

Don’t miss this chance to get expert advice on navigating OSHA regulations in the construction industry.

Following our OSHA topic, returning by popular demand, Kaitlyn Skarstein from ADP will speak from 4:15-4:45 CST to address follow-up questions from last month's Q&A on 1099 v. W2 classifications, providing valuable insights once again.

Message us for the Zoom details!

Check out more valuable insights from All For Contractors at https://www.allforcontractors.com/

Join us for an insightful, virtual Q&A session where Construction Attorney Kristen Shields and payroll expert Kaitlyn Skarstein will explore the key differences between 1099 and W2 classifications while highlighting missteps, exposing costs of getting it wrong, and presenting solutions.

Kaitlyn, a District Manager at ADP—one of the nation’s largest, leading payroll providers in the last 75 years - helps business owners navigate these critical challenges. With her expertise in payroll nuances and worker classifications, Kaitlyn's insights pair perfectly with Kristen’s legal guidance to provide you with the tools to ensure compliance and smooth operations in the new year.

Don’t miss this opportunity to have your questions answered. Supplemental resources will be provided to those who attend.
Message us your worker classification questions and stay tuned for more on this topic!

Thank. You.

*Newsletter Alert! Implement & Save $$$*

Change Orders Can Change Your Life | Part 1

Change orders are the most underutilized tool in construction. Regardless of your trade or specialty, situations arise in which a change order should be utilized. If you’ve taken our course “Operational Tactics To Reduce Financial Loss," then you know documents are intertwined with operations, and a change order is an extension of the contract documents you should be utilizing. Money is left on the table through change orders because you’re either 1) unable to collect additional expenditures for more labor and materials due to a change in the scope or 2) a customer complains about something leading you to give concessions.

The impact: less money coming in the door of your business or in some instances, you paying to make a situation go away – or sometimes both! You work incredibly hard to bid and execute a project, only for issues to wiggle their way into your project in the strangest of ways.

The primary misconceptions surrounding changes orders are:

1) Change orders are only for when the price increases. = Wrong!

2) Change orders are for commercial projects. = Wrong!

3) Change orders must have a certain formality or format. = Wrong again!

Let’s tackle these in order…

First, many people think change orders are only for when the price increases and hence are “additive.” If you’ve ever heard the term additive or deductive change orders, it is referring to the price increasing or decreasing. Certainly, the type most commonly thought of is additive, but the other two situations of using change orders when the price is decreasing or not changing at all are important too.

In their core, change orders reflect a change in the scope of work. This does not always equate with a change in price as you’ve gotten the hint so far. Sometimes a change results in a price increase, while other times a price decreases. In fact, as strange as it may sound, sometimes the change in scope doesn’t result in any change in price. If you are a roofer and accidentally destroy the customer’s Japanese Maple at the corner of their residence from tear off and offer to replace it, perhaps you log that in a quick change order with a price change of zero to show that the customer is authorizing you to pull up their old plant and add a new. I have seen customers sue contractors for the free stuff offered even if there’s been no mistake, but rather when the contractor is trying to build a rapport or be kind. It’s unfortunate, but even those moments can backfire.

If you’ve taken any of our courses, you know that a contract is a roadmap of mutual expectations that sets forth what each side will and will do not. Those rights and obligations fall largely within two categories: 1) the work, and 2) and the price. If either of those aspects change from the original plan, it needs to be documented in a change order that both you and the customer sign. Remember: If it’s verbal, it didn’t happen. If it’s in text message, bless you as you screenshot months’ worth of text communications between you and the customer that you turn over to your lawyer to handle a dispute that has arisen.

This is how easy it can be: Keep change order forms in your vehicle. If the customer asks for something different on the job, or especially if they’re the flippy floppy customer who always changes their mind, simply walk to your vehicle, grab a change order form or if none, a piece of paper, jot down the change and any price difference, and get the customer’s initials standing in their front yard. Snap a picture on your cell phone so there’s an extra copy and tell the customer you’ll email them a courtesy copy for their records thereafter.

If the customer refuses to have a written acknowledgement, that is a warning sign that perhaps you shouldn’t move forward with whatever they are asking. Document you’re delayed or only giving a short window, perhaps a couple of days, for the customer to give written authorization (via the change order) or you’ll proceed with the only written directive you have, which is the original contract or scope of work. A simple follow up via email transmitting the change order, requesting their electronic signature, and stating this brief window for authorization can help cover you. You cannot be in limbo indefinitely and do not want to be assessed any delay damages. Certain things should be papered and can be done easily and cheaply.

Using change orders does not require an overhaul of your processes, but rather an awareness that a change is being requested and getting in the habit of papering it. Essentially, develop a “if this, then that” mindset of “if the customer asks, then we paper it.” For example, you may put a sugar packet in your coffee each morning. You’ve done it so many times that few brain cells are utilized to do this rinse and repeat function. In fact, you’re usually half asleep still when doing this. Developing a new habit of utilizing change orders is no different and is not difficult. Before long, it’s like adding sugar to your coffee. It’s an easy, quick step.

If you’d like for us train your team on how to use change orders or navigate conversations with customers or have any questions, email [email protected] or message us. This is one of many things the AFC Training Division tackles so that the boots on the ground team members are equipped to get the signatures and customer authorization needed to protect the company. It also results in far less headache when trying to certify the project as complete, but the customer disagrees in some way.

Subscribe to the All For Contractors Newsletter on LinkedIn or our website www.AllForContractors.com and stay tuned for discussion of the second and third misconceptions surrounding change orders that will be posted soon!

Attention Louisiana! Learn with us to get your continuing education credits to renew your contractor’s license. Drop the phrase “teach me” in the comments, and we’ll send you the link to your bundle. Let’s get after it!

Kristen Shields taught a lively group of roofers in Atlanta last week about the revamped W2/1099 law that affects all contractors in ALL 50 STATES! Thank you GAF - Roofing for having us!

Tune in to the course available online to learn how it affects you. www.AllForContractors.com

All For Contractors is proud to announce that we are approved continuing education providers by the Mississippi Board of Contractors!

Mississippi contractors can now obtain all of their continuing education credits at AllForContractors.com.

Alabama Contractors!! 📣

We are thrilled to announce that All For Contractors is an approved continuing education provider by the State of Alabama Home Builders Licensure Board! Contractors can complete all 6 credit hours, including 2 credit hours of required Alabama specific continuing education, now at AllForContractors.com.

Contact us at [email protected] for more information about our courses!

All For Contractors now offers Alabama Specific continuing education courses required by the State of Alabama Home Builders Licensure Board. Register for your Alabama Specific course or Alabama 6 Credit Hour Bundle today at AllForContractors.com!

Thank you for the opportunity to be part of an incredible event! The and teams CRUSHED IT! We’re already on the count down to the next expo😎