1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

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

8. 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

9. 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

10. 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

11. 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

12. 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