Change orders can dramatically reduce project profitability, as demonstrated by a case where profitability dropped from 30% to 9%, resulting in a $4,000 loss on a project that was expected to generate $6,000 in profit.
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Change the way you thinkAdded:
I want to talk about change orders cuz looking at some of the profitability on jobs and this is what ends up happening.
The profitability at the end goes from 30% to 9%. You thought you were going to make six and now you made two grand and you're like, "What the hell?" This is how you prevent all of it.
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