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Fundamentals of Project Management: Part 1c APEGGA Annual Conference April 24 & 25, 2003 Dr. George F. Jergeas PEng. University of Calgary.

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Presentation on theme: "Fundamentals of Project Management: Part 1c APEGGA Annual Conference April 24 & 25, 2003 Dr. George F. Jergeas PEng. University of Calgary."— Presentation transcript:

1 Fundamentals of Project Management: Part 1c APEGGA Annual Conference April 24 & 25, 2003 Dr. George F. Jergeas PEng. University of Calgary

2 Schedule Day 1a zIntroduction z5-Step PM zPlanning and definition Day 1b zEstimating cost and time zVideo zOrganize project team zSelecting PM and team zEffective teams Day 2 c z Project procurement z Bidding process z Building & sustaining project team z Contract administration Day 2 d z Schedule control z Cost control z Project Close-out z Claims and disputes

3 5-Step Project Management PLANNING IMPLEMENTATION DEFINE Identify project activities Estimate time and cost Quality and Communic ation manageme nt Write Project Proposal ORGANIZE CONTROL PLANCLOSE State the Problem Identify Project Goal List the Objectives Determine Preliminary Resources Identify Risks and stakeholders Success criteria Determine Personnel Needs Recruit Project Manger Recruit Project Team Organize Project Team Bidding Assign Work Packages Define Management Style Establish Control Tools Prepare Status Reports Review Project Schedule, cost, team report Issue Change Orders Obtain Client Acceptance Install Deliverables and Commissioning Document the Project Issue Final Report Conduct Post- Implementation Audit Project charter WBS Recruit Criteria Variance Reports Final Report Project network Define Work packages Status Reports Audit Reports Project proposal Assign Work Packages Decision

4 Implementation Phase zStart once the project has been approved zProject team for the implementation is formed/procured yIn-house and external yProcurement procedures zWork package assignments can commence zDeliverables are agreed upon and clearly understood zControl systems are established yTime, Quality, Cost, Safety ….

5 Procurement Management zPlan procurement needs (goods and services external to the firm that you need to deliver the product) yMake or buy decisions yContract type options (risk sharing) zSolicitation yProcurement management plan yVendor selection process and criteria xProposals, contracts, legal issues

6 Procurement Management zSelect and manage sources (vendors, partners) yNegotiations yManage contracts zClose contracts yFormal acceptance and closure zLegal and ethical issues

7 Procurement Tips zDevelop charters with vendors and partners yRules of the game, conflict management guidelines, escalation process zTake lead times into account zDo risk management on procurement

8 Bidding Process zAdvertise and Award yIssue bidding documents yPre-qualification of bidders yOpening, acceptance and documentation of bids.

9 Bidding Process zIssue Bidding Documents yBefore the issuance of bidding documents, carefully go through all documents yErrors and omissions can later cause great problems, disputes and claims yKeep good records of all contract documents, bidders, dates sent out, etc. yCarefully and fairly manage addenda.

10 Bidding Process zPre-qualification of Bidders yPrescreening xinvited xshort-list yImproves the quality of bidders and the bidding process.

11 Bidding Process zOpening, Acceptance and Documentation of Bids yTreat all bidders equally yEnsure the process is fair and well documented yBid cannot be withdrawn yAward contract to compliant lowest bidder ySubcontractor bids irrevocable

12 Problem: Bid Shopping/Peddling zA prime contractor, after being notified of selection, shops for cheaper subcontractors rather than using the original subcontractor estimates. yBad practice, unethical and maybe illegal

13 Responsive Bids zOne that meets all of the requirements specified in the bidding documents: ySubmitted on time; any required forms are completed and properly filled out; required signatures are included and dated; no changes or conditions may be attached to the bid.

14 Bid Acceptance and Recording zBid opening is sometimes done in front of bidders; a formal process is required zChecklists help to determine if a bid is responsive zCarefully document the process zUse predetermined evaluation criteria.

15 Contracting zAdversarial zWin-lose approach zRisk allocation zFixed price and fast-tracking zIncrease in claims

16 Contract zContract: A promise, or a set of promises, which one person gives in exchange for the promise, or set of promises, of another person

17 Elements of a binding contract zOffer and Acceptance yOffer terminates xA counter-offer xOffer withdrawn xTime lapses zConsideration yMaybe money ($1 for a 2001 Mercedes) yMaybe promise to pay zCapacity to contract ( no minors, lunatics or drunkards ) zLawful purpose No illicit purpose or contrary to statute law

18 Case study ARA established its own construction company and decided to bid on a major infrastructure project for a Government agency. In its bid price of $2,750,000, ARA made a mistake by failing to include an amount of $750,000. This mistake resulted in its bid being substantially lower than the second lowest bidder of $3,400,000. Within an hour, subsequent to opening of bids, ARA requested to withdraw its bid, which had not yet been accepted, and asked for its bid deposit of $150,000 to be returned. When the owner rejected ARA request to withdraw its bid, ARA refused to proceed with the work. The owner sued the contractor for the bid deposit amount and the difference between the contractor’s bid price and the second lowest bidder’s price.

19 Case Study In groups, please answer the following questions using your common sense and experience: zIs ARA allowed to withdraw its bid after submission and before award? zIs ARA allowed to withdraw its bid after award? zIs ARA entitled to a return of its bid deposit? zMust the lowest bid be accepted? zWhat if all bids come in over budget? zWhat if contractor qualifies his/her bid?

20 Invitation to Tender v. Ron Engineering InvitationOffer Acceptance Call for Tender Submission of tenders Award of contract Completion of contract OfferAcceptance Call for tenders by owner by contractor by owner Contract AContract B Bid BondPerformance Bond

21 Practical Implications zTreat all bidders equally zBid should be submitted on time zContractor cannot withdraw bid zAward to lowest compliant bidder zDescribe selection procedures zSubcontractor tenders irrevocable

22 Project Partnering and Collaborative Relationships

23 Agenda zDefinitions of Partnering zKey success factors zBenefits zFramework zExamples

24 Partnering zPartnering reverse backward trend by: yChanging mind sets yFocus on real issues zStart partnering early! zDoes not replace contracts

25 “Partnering is a long-term commitment between two or more organisations for the purpose of achieving specific business objectives by maximising the effectiveness of each participant’s resources. This requires changing traditional relationships to a shared culture without regard to organisational boundaries. The relationship is based on trust, dedication to common goals, and understanding of each other’s individual expectations and values”

26 “Project partnering is a method of transforming contractual relationships into a cohesive, co-operative project team with a single set of goals and established procedures for resolving disputes in a timely manner”

27 “… to establish working relationships among the parties through a mutually developed formal strategy of commitment and communication. It attempts to create an environment where trust and teamwork prevent disputes, foster a co-operative bond to everyone’s benefit, and facilitate the completion of a successful project.” The Associated General Contractors of America (AGC)

28 Key Elements to Success zCommitment of all parties including senior management to the common goals zTrust yHonest and open communication at all levels yNo hidden agenda zDevelopment of mutual goals/objectives zContinuous evaluation zTimely responsiveness zA process for issue resolution zA fair contracting strategies based on the ability to control/manage risk.

29 Benefits of Partnering zReduced administrative costs zBetter utilization of resources zImproved communication zIncreased innovation zMore effective performance zNon adversarial approach

30 Partnering Framework Selection Teambuilding Project Managers Stake- holders Persistent Leadership Problem Resolution Continuous Improvement Joint Evaluation Completion Pre-projectImplementation Top Management Support and

31 Step 1: Partner Selection zIdeally based on track record zIn Public Sector - Competitive zPrivate Sector - RFP and/or negotiation zInterest in partnering zCommitment to partnering principles by: yTop management of all involved yProject team members

32 Step 2: Teambuilding zTeambuilding for Project Managers and Stakeholders zBuild collaborative relationship zAt best: common team culture zAt worst: shared understanding with cultural differences

33 Step 2: Team Building 1. Meet key players to review mutual objectives 2. Two-day workshop

34 Step 2: Team Building zExamine problems and barriers that have prevented collaboration in the past zRepresentatives of each group are asked the following questions: xWhat actions do the other groups engage in that create problems for us? xWhat actions do we engage in that we think create problems for them? xWhat recommendations would we make to improve the situation?

35 Step 2: Team Building zThe group share responses and ask questions zIdentify problem areas zEach group assigned the tasks of identifying its specific interests and goals for the project zGoals are shared across groups zEstablish goals they have in common

36 Step 2: Team Building zMixed groups assigned specific problems and asked to work out a recommended solution zConsolidate the efforts into a series of agreements and procedures to guide the partnering process

37 Step 2: Team Building zCreate Project Charter xStates common goal and objectives xStates procedure to achieve objectives xDefine indicators for success and identify early warning signs that the project will be tested against xCommits to realistic success xSigned by all zCreate a passionate, creative team that will deliver an outstanding project

38 Partnering Workbook Project overview Project Name - Deerfoot Trail AI/Carmacks Problem/Opportunity Transfer maintenace of Deefoot Trail from the City of Calgary to Alberta Infrastructure Goal The project team will maintain open road in a safe manner meeting the budget and schedule requirements for all stakeholders Objectives (KRA) - To develop maintenace strategy/plan for winter, summer and emergency - Hire personnel (and properly train) - Provide adequate equipment - Implement strategy - Reduce number of accidents (ultimately towards zero) - Cost reduction and increased efficiency (beating budget and schedule) - Minimize traffic disruptions - Maintain to at least the level of city - Avoid negative publicity - Seamless transition - Happy motorists - Learn as much as possible about urban maintenance Success Criteria - Reduced cost without reduced service (cost effectiveness) - Safety: reduced accidents compared to average of past 5 years - Ratio of favorable: unfavourable stories 1:10 - Positive media and population response - Quicker response times than specified - Reduce accidents on bridges Risks and Assumptions - Weather worse than average - Every small problem magnified by opposition - Stakeholders resistance and lack of support - No meaningful cost information or incomplete information - Starting conditions of road Prepared by Date Approved by Date

39 Our Common Goals and Objectives We, the partners of the Deerfoot Trail maintenance team, recognizing the unique nature of this project, commit to creating an environment of trust and communication to deliver a high quality project which meets or exceeds the requirements of all stakeholders. We commit to maintaining a positive and optimistic work environment in which all goals can be achieved. After discussion it was agreed that the partnering objectives for the maintenance contract are: 1. To obtain maximum value for money for Alberta Infrastructure, and for Carmacks to obtain a reasonable profit. 2. To provide high quality work that minimizes the inconvenience to the travelling public and is completed on time and in a safe manner. 3. To provide an environment in which both Alberta Infrastructure and Carmacks personnel work co-operatively to optimize this contract to both partners. 4. To provide an environment where the avoidance of disputes and conflicts is fundamental to the relationship between the parties. 5. To provide a non-confrontational forum for the resolution of any disputes which may arise. 6. To improve budget management by improved communication of potential cost overruns and changes. 7. To properly control costs. 8. To encourage innovation. 9. To develop a closer relationship to avoid misunderstandings - develop and maintain trust. 10. To understand and respect each partner’s role within the project team. 11. To manage the project efficiently. 12. To get it right the first time. 13. To achieve the above by performing in a manner which will ensure project success. 14. To have fun.

40 Framework: Implementation

41 Step 3: Persistent Leadership zLead by example yUnwavering, consistent, and fanatical support of senior management yConsistently display a collaborative as opposed to confrontational response to problem solving yTo champion the principles of openness, trust and teamwork

42 Step 3: Persistent Leadership yMutual trust will be tested by how partners respond to the first disagreements or setbacks that emerge yReward to those who adhere to the principles of alliance yAdmonish those who resort to more adversarial practices

43 Step 4: Problem Resolution zSystematic approach zSeek solutions zIncreased and higher quality discussion zWin-win solutions zEquality of rights among parties zAgree on no adversarial relations

44 Step 4: Problem Resolution zLowest level with time limit zEscalated to the next level of management zNo action is not an option

45 Step 4: Problem Resolution Stage One Problem becomes apparent Solution to problem offered by those who are directly involved with it. If problem not resolved, go to stage two. If solution agreed, do not go to stage two. If changes affect other project parties, record them onto a form for circulation. Stage Two Problem discussed at progress meeting. Solution to problem offered by project team. If solution to problem cannot be agreed at progress meting, go to stage three. If solution agreed, do not go to stage three. Solution to problem recorded in meeting minutes. Stage Three A resolution committee comprising a representative from each of the project parties is formed. Problem resolution meeting called for committee. Mutual way forward for project agreed by resolution committee. Statement of way forward recorded and issued. Finish If any project party is not content with the way forward agreed by the resolution committee then they may take normal recourse through the contract Problem Identified Within 2 day(s) Names: 1.Gary B 2. Gary M Within 3 day(s) Names: 1. Todd 2. Leane Within_5 day(s) Names: 1. Bruce 2. Dave Partnering Workbook Resources Available 1. Ron 2. Darrell

46 Step 5: Continuous Improvement zEliminate waste and rework zPursue cost saving opportunities zApply Value Engineering zShare risks and benefits

47 Step 6: Joint Evaluation zSpecific criteria to evaluate team effectiveness yTeamwork yTimely problem resolution zComparisons of survey responses identify areas of improvement and potential problems

48 Partnering Workbook

49 Step 7: Project Completion - Celebrating Success zFormal joint management review zReview accomplishments zReview disappointments and lessons learned zFestive celebration (picnic or banquet) yRecognize special contributions

50 Contract Administration Issues

51 Agenda: zOpening a project zJob philosophy zAuthority and responsibility zTemporary facilities zTime inspections and tests zContractor submittals zAdministrative activities zSuspension or termination of the work zSummary

52 Opening a Project zAfter award of contract, the contractor: yMake arrangement for the required policies of insurance yObtain permits yOrder long-lead purchase items yCheck the site to determine availability of storage and work staging areas yMake arrangemnets for off-site disposals of surplus or waste materials

53 Opening a Project zOwner schedule a preconstruction meeting: yMeet contractor and other key personnel yIdentify areas of responsibility yEstablish job philosophy (set the ground rules) ySet up requirements for on-or off-site meetings and set the frequency of such meetings, who should attend yDiscuss problems anticipated in construction yDiscuss special sequence of operations or shceduling limitations zIssue written Notice to Proceed ySet precise start date - good practice

54 Opening a Project zOutline project requirements on paper yContractor submittals yMaterial testing yOperational testing yReviews and updates required in schedules yDelivery dates of equipments zProcedures for handling of all communications

55 Job Philosophy: Instructions to Field Personnel zBasic Policy yContractors to be present at meetings with subcontractors yJob openning philosophy with contractor: Be firm but fair zResponsibility and Authority yBe a team member; avoid adversary relationship with contractor

56 Job Philosophy: Instructions to Field Personnel yInspections and tests to be made promptly yInspect the work as it progresses yAvoid overly-literal specification interpretation yNo field change without PM approval yFollowup all required corrective work until completed yDo NOT supervise any construction nor the contractor’s personnel yNo authority to stop the work; notify PM if necessity arises

57 Job Philosophy: Instructions to Field Personnel yNo authority to require quality exceeding that covered by the contract Instruction to the contractor thru Superintendent or PM yDocument all action taken zDocumentation yAll field personnel must keep approved type diary yContractor submittals to be documented both coming in and going out yBusiness telephone calls should be documented

58 Job Philosophy: Instructions to Field Personnel yKeep photographic records of progress yAll orders to the contractor must be in writing zCommunications yContractor submittals handled only thru Resident Project Rep. ySurveys and special inspections requested thru Resident Project Rep. yOrders to contractor from ANY source must be submitted thru RPR

59 Job Philosophy: Instructions to Field Personnel zChanges yField orders and change orders must be handled thru RPR yNo changes on oral instructions without written confirmation yNo significant deviations from plans and spec except by change order- even if no cost or time extension is involved

60 Job Philosophy: Instructions to Field Personnel zOther yAll inspection should be at irregularintervals yInspector should be one of the first ones at the job and one of the last to leave xnot a police officer xcontractor’s prior experience xlack of understanding of the A/E requiremnets

61 Authority the Owner zAward contracts in connection with the same work zRetain a specific portion of the contractor’s monthly payments zCarry out portions of the work with owner’s own forces in case of contractors default or neglect zWithhold payments from the contractor for adequate cause

62 Authority the Owner zTerminate the contract for cause zInspect the work as it progresses zDirect the contractor to expedite the work zUse completed portions of the work before contract completeion zMake payment deductions for incomplete or faulty work

63 Responsibility of the Owner zFurnish property surveys- locate project on site zMake periodic payments to contractor zMake extra payment in case of unforseen events zAllow extensions of time to complete the work for unanticipated events zCannot intrude into the direction and control of the work yCannot issue instructions as to method or procedures unless specifically provided for in the contract yNot to interfer unreasonably with construction operations

64 Responsibilities of A/E zNo contractual relationship with the contractor zRepresents the owner in the administration of the contract zSurveillance of the construction operations yOverseeing the progress of the work zSee that quality of work and materials are in conformance with the requirement of the drawings and specifications yJob inspection and approval of materials

65 Responsibilities of A/E zInspect and approve the contractor’s program of field procedure and even the equipment that is planned for use, as well as the schedule and sequence of operation yDoes not mean they assume responsibility zInstruct contractor to speed up the work to recover delay zInterpret the requirement of the contract yDecision is binding and final - questions of fact only xwhat materials, quantities, or quality yQuestion of law- no jurisdiction - time completion, claims, and liquidated damages

66 The General Contractor zFewer rights and more obligations zConstruct the project in accordance with drawings an specifications zExpected to deliver a completed project in the alloted time zOnly severe contingencies can relieve the contractor from contractual obligations zResponsible for the management and control of construction operations to maintain established work schedules, promote safe working condition zMust be on site at all time during working hours

67 The General Contractor zConform to all laws concerning job safety, licensing, employment, sanitation, insurance, zoning, building codes … zComply with tough rules relating to air polltion, noise, dust, trash disposal, sanitary wastes, pile driving, blasting, riveting, demolition, fencing, open excavations, traffic control, and house keeping zMust guarantee all work and materials on the project zInsurance coverage - protection of persons and property in, on, and adjacent to construction site

68 Resident Project Representative (Inspector) zAgent of the owner, consultant, CM firm zInspect the workmanship, materials, and manner of construction to determine whether requirements described by the plans, specifications, contract documents, codes… are met by the obseved work zInspection is to detect, recognize, and report deficiencies in material or workmanship, or non compliance with applicable plans, specifications, procedures, standards, codes or regulations

69 Contractor Quality Control Rep. zInspect its own work zAssure that all inspections and tests are made zChecking of all material and equipment delivered zAchieve quality construction by preventing defective work rather than discovering deficiencies that may result in costly removal and replacement zTake action to correct the deficiency even though it means stopping the work

70 Time of Inspection and Tests zContractor must give Engineer timely notice zTests and inspections required by public agencies must usually be paid for by the contractor zTests and inspections required by the contract documents will be paid for by the owner zWork covered prior to required inspections must be uncoveredfor inspection at contractor’s expense zFailure of an inspector to observe a deficiency does not relieve the contractor of obligation for performance

71 Time of Inspection and Tests zExtra inspections required as the result of a deficiency must be paid for by the contractor zThe contractor must provide all materials for testing at its own cost and expense zContractor Submittals should be handled in a systematic, consistent, and orderly manner. yChanges in the systems during a job lead to confusion, errors, and abuses yAll submittals transmitted directly to Resident Project Rep.

72 Administrative Activities of Engineer zCoordinate and provide general direction of work and progress zReview contractor’s schedules regularly zAssist in resolution of construction problems zEvaluate contractor claims for the design firm zMaintain log of change orders

73 Administrative Activities of Engineer zMaintain log of contractor submittals zDevelop and administer a quality control program yProofs of compliance yQualifications of testing services yDefine required tests yMaintain QC reporting systems yMaintain QC records of all tests and test results yEstablish frequency of testing

74 Administrative Activities of Engineer zPhysically inspect all construction every day zObserve all contractor tests zMaintain daily diary and construction records zMaintain record drawing data zReview contractor progress payment requests zReview contractor’s change order requests for design firm zAssure that construction area is safe zParticipate in field management meetings

75 Administrative Activities of Engineer zProvide negotiation assistance on contractor claims zReveiew and recommend contractor value engineering proposals zSupervise inspection forces and field office staff zReport field conditions that prevent original construction zOn unit-price projects, obtain accurate field meauremnents zOn all jobs, verify contractor’s monthly work quantities zAssist scheduling and ordering required field services

76 Suspension zSuspention is to cease all or part of the work without actual contract termination yThe owner may order the contractor in writing to suspend, delay, or interrupt all or part of the work for: xbudgetary limitation xupdating equipment xfailure of contractor to carry out orders or perform any provision of the contract xunsuitable weather conditions

77 Termination zOwner to discontinue all or any part of the work being done by a contractor yContractor default and bankrupcy yContractor abandoning the work yUnnecessary delay zIssue a change order

78 Summary zDo not get the idea that you should become a police officer, and everyone in the contractor’s camp is out to defraud zThe majority of contractors and their employees want to do a good job zKeep good records and communication yRead and understand all contract documentation yDocument anything that may change the terms of the contract yKeep as complete records as possible invariably the effort pays for itself in the long run: they protect you, your employer and your client.

79 Changes and Extra Work


81 This Session zDefinition zImpact costs zBasic principles in handling change orders zTypes of changes zElements of a change order zRecommendations for good practice zEvaluation of delays in the Work

82 Change Order zIs a written agreement to modify, add to, or otherwise alter the work from that set forth in the contract documents at the time of opening bids, provided that such alteration can be considered to be within the scope of the original project; otherwise, a contract modification may be required. zIt is the only legal means available to change the contract provisions after the award of contract

83 Addenda Vs. Change Order ADVERTISING DATE BID OPENING AWARD DATE SIGN AGREEMENT 1234 Changes by Addenda No ChangesChanges by Change Order

84 zCould be addition to or deletion from the work ychanges in the method of execution or manner of work performance ychange in owner-furnished materials or facilities ychange in the contract time or order of the work ycorrect errors in the plans or specifications ydirect results of contractor suggestions that are approved by the owner and its agents zChanges may involve ya price change in the contractor’s favor ycash credit to the owner yno price change at all

85 Impact Costs zOften, an owner fails to realize that the cost of changes in the work may well exceed the cost of the immediate change itself. zMany change order forms contain an exculpatory (disclaimer) clause that precludes a contractor from recovery of impact costs. zParties sometimes agree on the price of a change in both time and money, but the contractor wants to reserve the right to file for impact costs. zContractor would be ill-advised to sign off on a change order without a clear reservation, if it expects to claim any future impact costs. yif owner refuses to accept reservation, contractor should perform the changed work under protest without signing the change order or agreeing to a price

86 Basic Principles in Handling Change Orders zNo work should be included beyond the scope of the base contract. zThe identity of the individuals authorized to request and approve change orders should be established early. zDuring the pre-execution conference, a meeting should be held to establish the change order handling procedures. zAll changes in the work must be authorized in writing prior to the execution of any change. zThe scope of a change order must be clear, and a request for a change order proposal should contain enough information to enable the contractor to make a realistic estimate.

87 Basic Principles in Handling Change Orders zThe contractor should submit its proposal to execute a change order as soon as possible after receiving the request and the owner’s approval or rejection should follow as soon as possible. zThe proposal should be fair. It should recognize the contractor’s right to include: yoverhead and profit percentages ycompensation for legitimate time-delay claims ycompensation for legitimate impact costs if any

88 Types of Changes zDirected changes yowner directs the contractor to perform work that differs from that specified in the contract yeasy to identify, mutually recognized ydisagreements tend to center on questions of financial compensation and the effect of change on the schedule zConstructive Changes yis an informal act authorizing or directing a modification to the contract caused by an act or failure to act xdefective plans and specifications xengineer’s interpretation xhigher standard of performance than specified ximproper inspection and rejection xchange in method of performance xchange in the construction sequence xowner nondisclosure ximpossibility/impracticability of performance ymust be claimed in writing within time specified in the contract ymajor source of disputes

89 Sample of a change order PROJECT TITLE PROJECT NO.CONTRACT NO.CONTRACT DATE CONTRACTOR The following changes are hereby made to the Contract Documents: Construction of access bridge abutment No. 1 drainage system; and Reset two penstock bearing plates. All in accordance with revised DWG S-17209 Revision 3, dated 28 August 1991. Justification: Unforeseen soil conditions CHANGE TO CONTRACT PRICE Original Contract Price: $ Current contract price, as adjusted by previous change orders: $ The Contract Price due to this Change Order will be (increased) (decreased) by: $ The new Contract Price due to this Change Order will be: $ CHANGE TO CONTRACT TIME The Contract Time will be (increased) (decreased)by calendar days. The date for completion of all work under the contract will be Requested bydated Recommended bydated Ordered bydated Accepted bydated

90 Recommendation for good practice (AGC) zPercentages for overhead and profit to be applied to change orders zLength of time that a change order proposal price is to be considered as firm zDetermination of the individual representative of the owner who is authorized to approve change orders zProcedures to be followed in the submittal of change order proposals zChange order forms to be used zTime extensions required, if any zThe detail required of contractors when submitting change order proposals - will a complete breakdown of all costs be required? Brief description - Descriptive drawings zOvertime necessary due to change orders - consideration of decreased productivity zWhen materials or equipment is to be removed due to a change, which party owns the removed items, and who removes them from the site of the Job ? zResponsibility for record drawings brought about due to the change orders

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