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How to Reduce Change Orders on Lump Sum Contracts

Lump sum contracts provide clear scopes of work and fixed prices, but struggle to accommodate inevitable changes. Discover how technology can help you reduce change orders and enhance transparency.
September 11, 2023

Lump sum contracts have long been a staple in the construction industry. They provide a clear scope of work and a fixed price, which can be appealing for both owners and contractors. However, they often fall short when it comes to accommodating the inevitable changes that arise during construction.

How many projects have you actually completed with no change orders?

For the majority of construction projects, the answer is none. The reality is that, despite even the best planning, the dynamic nature of construction projects often leads to unexpected changes. These changes can stem from various sources: unforeseen site conditions, design modifications, material availability, regulatory changes, and of course, human errors. 

As a result, owners typically keep reserves on hand to account for possible budget increases as changes are approved. Depending on the size and quantity, change orders can quickly eat away at profit margins and lead to serious delays.

But what if there was a simple way to mitigate these risks and provide full transparency throughout the entire construction process? Enter TraceAir.

The TraceAir Solution: Minimizing Change Orders and Enhancing Transparency

TraceAir is revolutionizing the construction industry by offering a comprehensive, simple solution to the change order problem. Through cutting-edge technology and innovative approaches, TraceAir minimizes the occurrence of change orders and empowers users to make better, faster decisions backed by data. This proactive approach doesn't just save money; it saves significant time and reduces stress. Here’s how:

Risk Reduction

By accurately and regularly assessing site conditions, TraceAir helps users detect any deviations from the original plan, so they can be addressed as soon as possible. Overlay line work, utility plans, and other drawings for quality control. Early intervention allows for proactive decision-making, minimizing the impact of changes on the project's timeline and budget.

Full Transparency

By providing unlimited licenses at no additional cost, TraceAir offers an unprecedented level of transparency. Clients, contractors, and stakeholders can cohesively monitor the project's progress and use TraceAir as a single source of truth, fostering trust, accountability, and collaboration among the entire team. When the entire project team collaborates transparently, everyone benefits.

Listen in as Kelly Dykes, Vice President of Operations for Treehouse Builders, shares how he uses TraceAir to verify change orders and hold his team accountable:
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Data-Driven Problem Solving

Gone are the days of needing engineers and consultants to solve problems. TraceAir combines high-resolution imagery with extensive data in an easy-to-use platform. Leverage this data to collaboratively develop solutions based on real time site conditions and data. 

One of my favorite results of TraceAir is the boost of confidence it’s given my team. We pull TraceAir up in every meeting. The ability to visualize project sites, overlay plans, and use data in our conversations helps our entire team collaborate, make confident decisions, and ensure we’re all on the same page.”

Cody Simoneaux, Vice President of Land, M/I Homes - Charlotte Division

Dispute Resolution

The best way to deal with disputes is to avoid them before they start. With TraceAir, you can fully understand current site conditions and plan accordingly. Are there stockpiles that need to be removed? Transformer boxes where a proposed driveway should be? We’ve seen it all. A visual record allows owners to quickly settle disputes and keep projects moving.


Additionally, TraceAir maintains a historical record of scans that can be referred back to at any time. This feature repeatedly proves immense value, whether for demonstrating compliance or discussing a past project status.

With TraceAir, we resolved this issue in days instead of weeks, and we recouped tens of thousands of dollars that otherwise would have been lost.”

Ron Nooteboom, Independent Construction, Vice President of Operations

Embracing a Better Way

If there’s one thing we can all agree on, it’s that construction projects are stressful enough without the added stress of change orders. The benefits of TraceAir reach far beyond budgets and schedules, to significantly reducing stress and improving relationships. 

Schedule a demo to see for yourself how TraceAir is a vital tool for all land development and construction projects, especially those operating under lump sum contracts. 

If you’re considering TraceAir, I encourage you to see a demo and give it a try. The technology is ahead of its time.”

Jean-Michel Le Blanc, Director of Land Development, Minto Communities - Ottawa

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