How do you evaluate the validity and necessity of change order requests from contractors? (original) (raw)

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Change order requests are inevitable in any construction project, but they can also cause delays, disputes, and cost overruns if not managed properly. As a construction administrator, you need to evaluate the validity and necessity of each request from contractors and decide whether to approve, reject, or negotiate them. Here are some tips on how to do that effectively.

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Understand the contract terms

The first step is to review the contract terms and conditions that govern the change order process. These may include the scope of work, the schedule, the budget, the payment terms, the quality standards, and the dispute resolution mechanism. You should also check the drawings, specifications, and any other documents that define the project requirements and expectations. Make sure you understand what constitutes a valid change order request, what are the roles and responsibilities of each party, and what are the procedures and deadlines for submitting, reviewing, and approving change orders.

• This entails a comprehensive examination of the contractual language related to scope changes, unforeseen conditions, and permissible alterations. I assess whether the proposed changes align with the contractual framework and scrutinize the supporting documentation provided by the contractor, such as impact analyses and cost breakdowns. Additionally, I consider the project specifications and original scope, determining if the requested modifications are essential for project completion or if they deviate from the agreed-upon scope. By adhering to analysis of contractual obligations and project requirements, I ensure that change order requests are not only valid but also necessary for the successful delivery of the construction project.

Assess the impact of the request

The next step is to assess the impact of the request on the project objectives and outcomes. You should consider how the request affects the project scope, schedule, cost, quality, and risk. Evaluating how the request aligns with the project goals, vision, and stakeholders' needs and expectations is also important. To determine this, ask yourself if the request is necessary to comply with codes, regulations, or safety standards? Is it due to unforeseen site conditions, design errors or omissions, or client requests? Is it beneficial or detrimental to the project performance and value? Is it reasonable and feasible within the project constraints and resources? Is there sufficient documentation and justification to support it? Answering these questions will help you make an informed decision.

• I will analyze the proposed changes against established project goals, timeline, and budget, ensuring alignment with the original scope. Rigorous scrutiny involves evaluating potential disruptions to the construction schedule, resource allocations, and overall project efficiency. I weigh the necessity of each change against its potential to enhance project outcomes, considering factors like improved functionality. This approach not only safeguards the project's integrity but also ensures that change orders are validated based on their essential contribution to project success. The focus remains on balancing flexibility with the project's overarching objectives, fostering a strategic and efficient adaptation to evolving project needs.

Communicate and negotiate with the contractor

The final step is to communicate and negotiate with the contractor about the request. You should acknowledge the receipt of the request, ask for clarification or additional information if needed, and provide feedback and comments. You should also discuss the options and alternatives for resolving the request, such as modifying the design, adjusting the schedule, reallocating the budget, or sharing the risks. You should aim to reach a fair and mutually acceptable agreement that reflects the best interests of the project and the parties involved. You should also document and formalize the agreement in a written change order that specifies the scope, cost, time, and quality implications of the change.

By following these steps, you can evaluate the validity and necessity of change order requests from contractors and manage them efficiently and effectively. This will help you avoid conflicts, delays, and cost overruns, and ensure the successful delivery of your construction project.

• I will engage in open dialogues to comprehend the rationale behind the proposed changes, seeking detailed explanations and supporting documentation. Through conversation, I work towards a mutual understanding of the project's evolving needs and assess the contractor's perspective on the necessity of the change orders. This collaborative process allows for a transparent exchange of information, enabling me to evaluate the validity of the requests within the project's contractual framework. Negotiation becomes a key element, aiming to find common ground that aligns with project objectives while considering the contractor's concerns. This approach fosters a cooperative environment, minimizing disputes, and ensuring that change orders are valid

Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

• My assessment of the validity and necessity of change order requests extends beyond contractual considerations and communication. It involves a holistic analysis that encompasses project risk, feasibility, and long-term impact. Moreover, I will evaluate the technical feasibility of proposed changes, ensuring they align with industry standards and regulatory requirements. This multifaceted approach allows me to gauge the true necessity of change orders, considering their broader implications on project success. It involves a strategic balance between accommodating legitimate variations for project improvement and safeguarding against unnecessary modifications that may compromise the project's integrity.

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