Changes and Change Orders

What happens when you find yourself doing extra work on a job? Hopefully the result will be additional compensation for that work. Here is a checklist for the management of changes.

Before you begin work pull the following information out of the specifications and list with the project cover sheet:
1) What is the notification timeline for changes from time of discovery
2) Who gets notified
3) What is the deadline / timeline for pursuing changes
4) Is there a change pricing clause in the agreement

Educate your field staff
1) They should be familiar with the scope of work
2) They should know the schedule
3) They should report anything that looks like a change to the home office

Determine the basic cause of the change
1) Extra work ordered by owner
2) Error or omission on the plans
3) Delay or event beyond your anticipation or control
4) Hidden condition

a) State specifically what changed
b) State why it changed
c) State what you want (money, time, etc.)
d) Keep good records and be prepared to negotiate

Follow up
1) Watch deadlines - Especially for claim notification
2) Keep cost / impact documentation

Use Judgment
Not all changes are worth pursuing. Many contractors allow for some minor additional costs due to changes. Be careful of a job where there are numerous small changes, no single one of which is large enough to pursue, which add up to a major cost impact. In such cases you can notify and submit requests for changes and then drop some or all of them at the end of the project.