What is a change order process and why is it important for construction management?

Exploring change order types reveals the intricate nature of project modifications. Owner-initiated changes reflect the evolving project landscape. Contractor-initiated changes highlight adaptability in execution. Engineer-initiated changes contribute to ongoing refinement. Unforeseen changes emphasize the inherent unpredictability in construction. A robust understanding is fundamental for effective management, enabling strategic responses to dynamic challenges in large-scale projects.

Change orders can come in many forms. Typical types are but not limited to: - Scope changes - Schedule changes - Damages by others - Contract delays - Weather delays These can be caused by any reason the contract isn’t accurate and can be mitigated, in some cases by good relationships and trading around different skill sets, shared equipment, etc.

The delineation of change order process steps in construction management offers a systematic approach for managing modifications within a project. From the initiation through a formal change request to the subsequent phases of evaluation, negotiation, approval, implementation, and verification, each step plays a crucial role in ensuring transparent communication, alignment of stakeholders, and adherence to project objectives. This structured framework contributes to the overall success and integrity of the construction project by emphasizing precision in execution and quality assurance.

Change orders are in steps very generically and not always in this order. - Change order is identified - RFI, Submittals change, scope revision, delay, etc - Request subcontractor scope change pricing, material, etc. - Combine and submit for the client - Work approved in writing - email with price and scope, executed change order, etc. - Work is performed. - Work is paid. Work being approved in writing is up to the discretion of the performer of the work. If the relationship is rocky, contracts typically require an executed change order before work is contractually bound but most cases, work gets performed in good faith based on a written acceptance. Do not proceed on verbal or you’re asking for legal trouble.

The order I commented on the last question of this section is the best practice, however, rarely followed. The industry is based on relationships and quick timelines but with more and more corporate processes, change orders take much longer to process then needed causing delays in schedule. Following this process is a companies best chance of avoiding any issues on receiving payment for change orders.

In my experience the largest pitfalls with change orders are: - Unclear scope - Slow processes from company to company to turn around pricing and formally approve - Scope needing clarification on RFI - Clients expectation for blanket pricing to cover a general idea or napkin sketch There are many more but again, follow a legal process and approach to change orders to both keep expectations clear and work flowing.