Directed Change Constructive Change Owner directs contractor to do work No question change occurred only how much it costs Constructive Change Informal act authorizing or directing a modification of the contract caused by an act or failure to act Owner causes contractor to increase costs/time -> change order

Major cause of disputes Constructive changes Defective plans and specs Engineer’s interpretation Higher standard of performance than specified Improper inspection and rejection Change in method of performance Change in the construction sequence Owner disclosure Impossibility/impracticability of performance Major cause of disputes Usually center around plans and specs A/E interpret differently than contractor

Elements of a Change Order ID of change order Description of change Reason for change Change in contract price Change in unit prices change in contract time Statement that secondary impacts are included Approval by owner’s and contractor’s reps

Following is a list of items to discuss in contract Change orders are responsible for more disputes than any other aspect of project Following is a list of items to discuss in contract % for overhead and profit, costs that will and will not be included in price Length of time that a change order proposal price is firm Determination of the individual rep of owner who is authorized to ok CO

Procedures to follow in submittal of CO’s CO forms to be used Time extensions required Detail required by contractor when submitting CO proposals – complete cost breakdown? Drawings Overtime necessary due to CO – decreased productivity When materials or equipment is to be removed – who owns it Responsibility for record drawings brought about by COs

Purposes served by change orders Change contract plans or specify the method and amount of payment and changes in contract time Change contract specs Effect agreements concerning order of work Administrative purposes to establish method of extra work payment and fund for work stipulated in contract Authorize an increase in extra work funds to complete changes

Cover adjustments to contract unit prices for overruns and underruns, when required Effect cost reduction proposals (value eng) Effect Payment after claim settlements

o Consideration for evaluation Differing site conditions Errors and omissions in plans and specs Change from regulatory agency Design changes Overruns/ underruns in quantities beyond limits Factors effecting time of completions

Evaluating delays in the work Was cause of delay beyond control of contractor Was GC ready and able to work Did the GC submit a detailed schedule projecting completion within time allotted Schedule updated regularly Did updated schedule justify time extension CPM analysis

Has the GC proven “unusually severe weather” with reliable data Contractor maintained sufficient forces in CP activities to meet target dates How have causes other than normal weather, beyond the control of and not caused by the GC affected the target date Has the GC proven “unusually severe weather” with reliable data Did weather cause delays to CP activities Was GC shut down for other reasons

Change order justification Did GC promptly and before such conditions were disturbed comply with owner’s modification requirements Did GC make a site inspection and evaluate conditions prior to bid Is construction layout right- who did staking Did utilities locate their facilities, where marks protected, where facilities protected

Change Order Process Initiation Anyone can initiate a change order Change to plans, additional work, deleted items Preparation Clear, concise, explicit What needs to be done, how much is it worth, additional time? Authorization Only owner or their agent can sign