CON 2001 CVE 4070 Construction Methods/Engineering Changes & Extra Work Prof. Ralph V. Locurcio, PE

Change order defined…  A written agreement to modify, add to or otherwise alter the work, timing or payment set forth in the original contract documents, for an agreed upon sum or compensation, which is signed by both parties to the original agreement.

Reasons for changes…  Change of purpose or need…  Changes to methods or manner of work...  Correct errors or omissions…  Differing site conditions…  Value engineering…  Contractor suggestions…  Almost any other reason not envisioned when the original contract was written.

Timing of changes…

Types of change orders…  Oral change orders  Written and/or directed change orders  Bilateral change orders  Unilateral change orders  Constructive change orders

Oral change order…  An oral directive to accomplish work that is not part of the original scope of work.  May be issued by the owner’s rep or other party representing the owner.  May be precluded by the contract, but will be upheld in court if the contractor performs work that is accepted.  Very dangerous because terms may not be clear, conditions may change, memories may differ as to what was agreed.

Written or directed change…  A formal document directing a change in scope or method.  Generally bilateral, but not essential.  Becomes part of the contract.  Issued before work is accomplished.  Parties agree on specific scope and associated costs.  Culminated by “notice to proceed”.  Signed by parties authorized by the owner and builder.

Unilateral change…  Used in emergency situations or when time does not permit a fully processed bilateral change.  May be issued over builder’s protest.  May be backed by law in government contracts.  Intended to expedite a necessary change to the contract.  Must be replaced by a written bi- lateral change

Bilateral change…  Both parties agree to the scope and terms of the agreement.  The normal or desired form of change.

Constructive change…  An “informal” act that authorizes or directs a modification to the contract.  May be act of commission or omission.  Must be claimed in writing by the contractor within a specified time (usually 10 days).  These are a major source of disputes.

Situations for constructive change…  Engineer’s interpretation of work.  Improper inspection or rejection.  Impossibility or impracticability of performance.  Unclear/conflicting contract documents.  Owner fails to decide in timely manner.  Unclear standards of work.

Change order process…  Identify of need/reason for change  May be initiated by owner or contractor  Initiator prepares detailed scope  Change approved by owner  Submit to designer of record for approval  PM makes detailed cost estimate  CM makes detailed estimate  Negotiate final cost (PM & CM)  Owner agrees & signs change document  Notice to proceed issued to contractor

Change order process…

Change order request… Proceed to Approval

Change order approval… Begin Approval Process

Change order cost estimate(s)…  Study the plans  Organize your estimate  Determine critical items & dimensions  Determine materials & methods  Determine quantities & labor  Calculate the cost of each item  Add taxes + overhead & profit  Negotiate with the contractor

Making a detailed estimate  Take-off (count) quantities from plans  Determine cost of materials in units  Determine cost of labor in units  Calculate cost of materials + labor  Add sales taxes on materials (6%)  Add labor taxes on labor cost (~25%)  Add Overhead & Profit (~10%) Note: obtain costs from RS Means or similar data

Foundation excavation-1…

Foundation-2… Excav

Foundations…  Concrete…  volume of concrete in CF  cost of concrete in $$$/CF  cost of labor in $$4/CF  Excavation  volume of excavation in CF  cost of excavation labor in $$$/CF  cost of equipment in $$$/CF or $$$/HR  Foundation Cost = sum(conc + excav + labor)

Masonry walls… W1 W2 W3/W6 W4 W5 W7 W8 W9 12”CMU 8” CMU Insul Brick

Walls…  Walls…  length of walls in LF  height of walls in LF  area of walls in SF  cost of wall material in $$$/SF  cost of wall labor in $$$/SF  cost = material + labor  Repeat for different materials  Add all components for total cost of walls

Floor slab… FS-1 FS-2

Floor Slab…  Floor Slab  length of floor-1 in LF  width of floor-1 in LF  depth of floor-1 in LF  volume of concrete in CF  cost of concrete in $$$/CF  cost of labor in $$$/CF  repeat for floor-2  Floor = slab-1 + slab-2

Cost of Change Order  Cost of foundations + cost of walls + cost of floor slabs + other costs  Sum cost of all materials  Sum cost of all labor  Add sales taxes on materials (6%)  Add labor taxes on labor cost (~25%)  Add totals  Add Overhead & Profit (~10%)  Final estimate of change order

Impact costs…  Unforeseen costs that impact the progress of work as a result of the change, but are not calculated, or agreed to, at the time that the change is made.  Usually expressed as a claim for additional work at the end of a contract.  Some contracts may preclude these, but courts may honor them if actual costs or burden can be proven.

Format for Change Order

HW #7

Almost the last slide…  Change Order Estimate  Due Nov 10

Questions…