Description

“Change is inevitable,” as the old saying goes. On construction projects, a more appropriate statement might be that “change orders are inevitable.” Change orders in construction projects are the most significant source of financial increases, disputes and schedule delays for general contractors, subcontractors, owners, and consultants! 

Are you losing money on changes, schedule getting out of control, subcontractors not providing pricing on time, owners not issuing change orders when they should? Are you leaving money on the table and overlooking recoverable change order cost items? The “Contractor’s Practical Guide to Change Order Pricing and Management” workshop will provide the contractor with valuable guidance and working tools for effective change order management to increase the effectiveness in preparing for change orders, simplify the process and boost change order approval rates. This workshop is a comprehensive and practical guide for managing one of the most critical areas of construction contracting: preparing, pricing, gathering, submitting, negotiating, and getting paid for all changes to construction projects. 

Working with the manual, that has over 25 example checklists, forms and letters, this workshop will guide the contractor through step-by-step procedures, checklists, forms, and letters that combine to create the blueprint for the successful submittal of proposed change order pricing and issuance of change orders. 

Topics will include:

• Understand conditions that create change orders and be prepared for them 
• Learn the Request for Information (RFI) process and how to leverage RFI’s for answers and changes
• Understand the Supplemental Instruction (SI) – a no cost, no time document and how to manage risk associated with improperly issued SI’s 
• Learn about contractual obligations of the change order process including overhead and profit, valid pricing periods and more 
• Learn the step-by-step change order process including: 
  • Creating a master change control log
  • Managing subcontractors pricing including distributing, managing receipt of, reviewing, and returning pricing for correction
  • Managing and determining all internal company costs, including direct, indirect and consequential costs
  • Determining schedule impact and additional general conditions costs related to the proposed change, including time impact analysis and creating fragnets
  • Compiling and assembling all proposed change costs including internal, external and schedule impact costs
  • Learning the value of complete and comprehensive supporting documentation
  • Submitting the proposed change pricing package and the importance of submitting it on time
  • Understand the qualifications to add to proposed change order pricing to protect the contractor regarding the validity of the pricing duration as well as others
  • Managing the consultant and owner review and issuance of the change order
  • Understanding when the contractor needs to raise the flag by issuing first and second notices and then a “Notice of Delay”, if required, to the owner for prompt change order issuance
  • Managing the change orders and issuing subcontractor change orders 
• Understand and be prepared for common change order issues 
• Learn the risky business of change directives and the importance of submitting daily labour timesheets (example included) and costs 
• Learn the importance of issuing “zero dollar” subcontractor change orders to ensure that all subcontractors are working from the most current set of documents. 
• Learn about the cumulative impact of changes and how it is the contractor’s responsibility to be able to predict the future impact of current changes 

Exclusive to this workshop is a comprehensive manual that is used as a reference and guide throughout the sessions. The manual is based on accumulated knowledge gathered over 40 years in the construction industry. It is a valuable and effective tool that contains not only practical how-to’s, checklists and templates but will also be a foundation for new processes and procedures back in the office or on the jobsite. 

Who Should Attend:

Owners, senior managers, project managers, project coordinators and supervisors for general contractors and subcontractors who want to learn how to create repeatable and profitable processes for change order management. 

Virtual Classroom Sessions:

2 session of 3.5 hours each 

Gold Seal Accreditation:

This workshop is worth 1 Gold Seal credit.