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Efficient Contract Change Order Process for Project Success

Learn how to improve the validation and processing of change orders quickly and efficiently, ensuring project timelines, costs, and expectations are met. This guide provides valuable insights and tools for contract change order management.

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Efficient Contract Change Order Process for Project Success

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  1. Contract Change Orders procedures Claims and Disputes Manager/Cost Engineer Bob Bourg/Marlene Anglemyer

  2. Change Orders • Change Order Process • Reducing turnaround time (Lean Process) • Introduction of new forms

  3. Improving Change Order Process Why it’s important • Keeps project on-time • Keeps project costs low • Sets project expectations high • Team building • Reduces risk • Accurate reflection of project changes • Builds healthy relationships

  4. Improving the method of validating and processing changes quickly and efficiently begins with GC requirements of the proper method Follow GC’s regarding preferred method of processing changes to the Contract Change Order Proposal (COP) vs. FA -- COP in lieu of FA when possible

  5. See attached for Checklist that must be included with the COP or FA package

  6. COP/FA Calculation Worksheet

  7. General Conditions • 7.02 A General Application • 7.02 4. Fixed price method is default: Owner may direct otherwise: When Owner has requested Contractor to submit a Change Order Proposal, Owner may direct Contractor as to which method in subparagraph 3 above to use when submitting its proposal. Otherwise, Contractor shall determine the value of the Work, or of a request for an equitable adjustment, on the basis of the fixed price method.

  8. Fixed Priced Method This method includes the following for pricing components: Labor (rate x # of hours) + burden Supervision (15%) Safety (% of labor) Small tools (% of labor) Material units x cost per unit Equipment costs length of time x rate Subcontractor costs on subtotal of above Overhead and Profit Insurance and bond on total of all of above

  9. Mature Scoping and Description of Change Mature Scope Description includes: • clear and explicit language • details, drawings, sketches • dimensions • unique characteristics of the work • quantities • supplementary specification sections • all RFI’s relevant to change • expectations *These are vital to a reasonable, comprehensive cost compilation*

  10. Achieving success in contract administration begins with an attitude of cooperative engagement from all levels of the project team throughout the project lifecycle! Successful changes

  11. Use the change order log as tool in your weekly meetings to discuss outstanding, pending or disputed changes

  12. Tools for Change Orders

  13. Comments/Questions/Feedback? Successful projects Teamwork leadership • Value in reduced turnaround time • Transparency • Risk reduced • Uncertainty reduced • Cohesive projects • Within budget • Improved communication • Productivity increased • Accurate project costs

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