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Fundamentals of Project
Management: Part 1c
APEGGA Annual Conference
April 24 & 25, 2003
Dr. George F. Jergeas PEng.
University of Calgary
Schedule
Day 1a
Introduction
5-Step PM
Planning and definition
Day 1b
Estimating cost and time
Video
Organize project team
Selecting PM and team
Effective teams
Day 2 c
Project procurement
Bidding process
Building & sustaining
project team
Contract administration
Day 2 d
Schedule control
Cost control
Project Close-out
Claims and disputes
5-Step Project Management
PLANNING
IMPLEMENTATION
DEFINE
PLAN
ORGANIZE
CONTROL
State the
Problem
Identify
project
activities
Determine
Personnel
Needs
Define
Management
Style
Obtain
Client
Acceptance
Estimate
time and
cost
Recruit
Project
Manger
Recruit
Project Team
Establish
Control Tools
Install
Deliverables and
Commissioning
Organize
Project Team
Review
Project
Schedule, cost,
team report
Identify
Project
Goal
List the
Objectives
Determine
Preliminary
Resources
Identify
Risks and
stakeholders
Success criteria
Project charter
Quality
and
Communic
ation
manageme
nt
Bidding
Assign Work
Packages
Write
Project
Proposal
Decision
Recruit Criteria
WBS
Project network
Project proposal
Define Work packages
Assign Work Packages
Prepare
Status Reports
Issue Change
Orders
Variance Reports
Status Reports
CLOSE
Document the
Project
Issue Final
Report
Conduct PostImplementation
Audit
Final Report
Audit Reports
Implementation Phase
Start once the project has been approved
Project team for the implementation is
formed/procured
In-house and external
Procurement procedures
Work package assignments can commence
Deliverables are agreed upon and clearly
understood
Control systems are established
Time, Quality, Cost, Safety ….
Procurement Management
Plan procurement needs (goods and services
external to the firm that you need to deliver the
product)
Make or buy decisions
Contract type options (risk sharing)
Solicitation
Procurement management plan
Vendor selection process and criteria
Proposals, contracts, legal issues
Procurement Management
Select and manage sources (vendors,
partners)
Negotiations
Manage contracts
Close contracts
Formal acceptance and closure
Legal and ethical issues
Procurement Tips
Develop charters with vendors and
partners
Rules of the game, conflict management
guidelines, escalation process
Take lead times into account
Do risk management on procurement
Bidding Process
Advertise and Award
Issue bidding documents
Pre-qualification of bidders
Opening, acceptance and documentation of
bids.
Bidding Process
Issue Bidding Documents
Before the issuance of bidding documents,
carefully go through all documents
Errors and omissions can later cause great
problems, disputes and claims
Keep good records of all contract documents,
bidders, dates sent out, etc.
Carefully and fairly manage addenda.
Bidding Process
Pre-qualification of Bidders
Prescreening
invited
short-list
Improves the quality of bidders and the
bidding process.
Bidding Process
Opening, Acceptance and Documentation
of Bids
Treat all bidders equally
Ensure the process is fair and well
documented
Bid cannot be withdrawn
Award contract to compliant lowest bidder
Subcontractor bids irrevocable
Problem: Bid
Shopping/Peddling
A prime contractor, after being notified of
selection, shops for cheaper
subcontractors rather than using the
original subcontractor estimates.
Bad practice, unethical and maybe illegal
Responsive Bids
One that meets all of the requirements
specified in the bidding documents:
Submitted on time; any required forms are
completed and properly filled out; required
signatures are included and dated; no
changes or conditions may be attached to the
bid.
Bid Acceptance and
Recording
Bid opening is sometimes done in front of
bidders; a formal process is required
Checklists help to determine if a bid is
responsive
Carefully document the process
Use predetermined evaluation criteria.
Contracting
Adversarial
Win-lose approach
Risk allocation
Fixed price and fast-tracking
Increase in claims
Contract
Contract: A promise, or a set of
promises, which one person
gives in exchange for the
promise, or set of promises, of
another person
Elements of a binding
contract
Offer and Acceptance
Offer terminates
A counter-offer
Offer withdrawn
Time lapses
Consideration
Maybe money ($1 for a 2001 Mercedes)
Maybe promise to pay
Capacity to contract (no minors, lunatics or
drunkards)
Lawful purpose
• No illicit purpose or contrary to statute law
Case study
ARA established its own construction company and decided
to bid on a major infrastructure project for a
Government agency. In its bid price of $2,750,000, ARA
made a mistake by failing to include an amount of
$750,000. This mistake resulted in its bid being
substantially lower than the second lowest bidder of
$3,400,000. Within an hour, subsequent to opening of
bids, ARA requested to withdraw its bid, which had not
yet been accepted, and asked for its bid deposit of
$150,000 to be returned.
When the owner rejected ARA request to withdraw its bid,
ARA refused to proceed with the work. The owner sued
the contractor for the bid deposit amount and the
difference between the contractor’s bid price and the
second lowest bidder’s price.
Case Study
In groups, please answer the following questions
using your common sense and experience:
Is ARA allowed to withdraw its bid after submission
and before award?
Is ARA allowed to withdraw its bid after award?
Is ARA entitled to a return of its bid deposit?
Must the lowest bid be accepted?
What if all bids come in over budget?
What if contractor qualifies his/her bid?
Invitation to Tender v. Ron
Engineering
Invitation
Call for tenders
by owner
Offer
Call for
Tender
Offer
Acceptance
by owner
by contractor
Acceptance
Submission
of tenders
Contract A
Bid Bond
Award of
contract
Completion
of contract
Contract B
Performance
Bond
Practical Implications
Treat all bidders equally
Bid should be submitted on time
Contractor cannot withdraw bid
Award to lowest compliant bidder
Describe selection procedures
Subcontractor tenders irrevocable
Project Partnering and
Collaborative Relationships
Agenda
Definitions of Partnering
Key success factors
Benefits
Framework
Examples
Partnering
Partnering reverse backward trend by:
Changing mind sets
Focus on real issues
Start partnering early!
Does not replace contracts
“Partnering is a long-term commitment
between two or more organisations for
the purpose of achieving specific
business objectives by maximising the
effectiveness of each participant’s
resources. This requires changing
traditional relationships to a shared
culture without regard to organisational
boundaries. The relationship is based on
trust, dedication to common goals, and
understanding of each other’s individual
expectations and values”
“Project partnering is a
method of transforming
contractual relationships into
a cohesive, co-operative
project team with a single set
of goals and established
procedures for resolving
disputes in a timely manner”
“… to establish working relationships among
the parties through a mutually developed
formal strategy of commitment and
communication. It attempts to create an
environment where trust and teamwork
prevent disputes, foster a co-operative bond
to everyone’s benefit, and facilitate the
completion of a successful project.”
The Associated General Contractors of America (AGC)
Key Elements to Success
Commitment of all parties including senior
management to the common goals
Trust
Honest and open communication at all levels
No hidden agenda
Development of mutual goals/objectives
Continuous evaluation
Timely responsiveness
A process for issue resolution
A fair contracting strategies based on the ability to
control/manage risk.
Benefits of Partnering
Reduced administrative costs
Better utilization of resources
Improved communication
Increased innovation
More effective performance
Non adversarial approach
Partnering Framework
Pre-project
Implementation
Teambuilding
Project and StakeManagers holders
Problem
Resolution
Continuous
Improvement
Joint Evaluation
Top Management Support
Completion
Selection
Persistent
Leadership
Step 1: Partner Selection
Ideally based on track record
In Public Sector - Competitive
Private Sector - RFP and/or negotiation
Interest in partnering
Commitment to partnering principles by:
Top management of all involved
Project team members
Step 2: Teambuilding
Teambuilding for Project Managers and
Stakeholders
Build collaborative relationship
At best: common team culture
At worst: shared understanding with
cultural differences
Step 2: Team Building
1. Meet key players to review mutual
objectives
2. Two-day workshop
Step 2: Team Building
Examine problems and barriers that
have prevented collaboration in the past
Representatives of each group are
asked the following questions:
What actions do the other groups engage in
that create problems for us?
What actions do we engage in that we think
create problems for them?
What recommendations would we make to
improve the situation?
Step 2: Team Building
The group share responses and ask
questions
Identify problem areas
Each group assigned the tasks of
identifying its specific interests and goals
for the project
Goals are shared across groups
Establish goals they have in common
Step 2: Team Building
Mixed groups assigned specific problems
and asked to work out a recommended
solution
Consolidate the efforts into a series of
agreements and procedures to guide the
partnering process
Step 2: Team Building
Create Project Charter
States common goal and objectives
States procedure to achieve objectives
Define indicators for success and identify early
warning signs that the project will be tested
against
Commits to realistic success
Signed by all
Create a passionate, creative team that
will deliver an outstanding project
Project overview
Project Name - Deerfoot Trail
AI/Carmacks
Problem/Opportunity
Transfer maintenace of Deefoot Trail from the City of Calgary to Alberta
Infrastructure
The project team will maintain open road in a safe manner meeting the budget and
schedule requirements for all stakeholders
Objectives (KRA)
- To develop maintenace strategy/plan for winter, summer and emergency - Hire
personnel (and properly train) - Provide adequate equipment - Implement strategy
- Reduce number of accidents (ultimately towards zero) - Cost reduction and increased
efficiency (beating budget and schedule) - Minimize traffic disruptions - Maintain to
at least the level of city - Avoid negative publicity - Seamless transition - Happy
motorists - Learn as much as possible about urban maintenance
Success Criteria
- Reduced cost without reduced service (cost effectiveness) - Safety: reduced accidents
compared to average of past 5 years - Ratio of favorable: unfavourable stories 1:10
- Positive media and population response - Quicker response times than specified
- Reduce accidents on bridges
Risks and Assumptions
- Weather worse than average - Every small problem magnified by opposition Stakeholders resistance and lack of support - No meaningful cost information or
incomplete information - Starting conditions of road
Prepared by
Date
Approved by
Date
Partnering Workbook
Goal
Our Common Goals and Objectives
We, the partners of the Deerfoot Trail maintenance team, recognizing the unique
nature of this project, commit to creating an environment of trust and
communication to deliver a high quality project which meets or exceeds the
requirements of all stakeholders. We commit to maintaining a positive and
optimistic work environment in which all goals can be achieved.
After discussion it was agreed that the partnering objectives for the
maintenance contract are:
1.
2.
To obtain maximum value for money for Alberta Infrastructure, and for Carmacks to obtain a
reasonable profit.
To provide high quality work that minimizes the inconvenience to the travelling public
and is completed on time and in a safe manner.
3.
To provide an environment in which both Alberta Infrastructure and Carmacks personnel
work co-operatively to optimize this contract to both partners.
4.
To provide an environment where the avoidance of disputes and conflicts is fundamental to
the relationship between the parties.
To provide a non-confrontational forum for the resolution of any disputes which may arise.
5.
6.
7.
8.
9.
To improve budget management by improved communication of potential cost overruns and
changes.
To properly control costs.
To encourage innovation.
To develop a closer relationship to avoid misunderstandings - develop and maintain trust.
10.
11.
12.
13.
To understand and respect each partner’s role within the project team.
To manage the project efficiently.
To get it right the first time.
To achieve the above by performing in a manner which will ensure project success.
14.
To have fun.
Framework: Implementation
Step 3: Persistent
Leadership
Lead by example
Unwavering, consistent, and fanatical support of
senior management
Consistently display a collaborative as opposed
to confrontational response to problem solving
To champion the principles of openness, trust
and teamwork
Step 3: Persistent
Leadership
Mutual trust will be tested by how partners
respond to the first disagreements or setbacks
that emerge
Reward to those who adhere to the principles of
alliance
Admonish those who resort to more adversarial
practices
Step 4: Problem Resolution
Systematic approach
Seek solutions
Increased and higher quality discussion
Win-win solutions
Equality of rights among parties
Agree on no adversarial relations
Step 4: Problem Resolution
Lowest level with time limit
Escalated to the next level of
management
No action is not an option
Step 4: Problem Resolution
Stage Two
Stage Three
Within 2 day(s)
Names:
1.Gary B
2. Gary M
Within 3 day(s)
Names:
1. Todd
2. Leane
Within_5 day(s)
Names:
1. Bruce
2. Dave
Problem becomes
apparent
Problem discussed at
progress meeting.
Solution to problem
offered by those who
are directly involved
with it.
Solution to problem
offered by project
team.
A resolution
committee
comprising a
representative from
each of the project
parties is formed.
If problem not
resolved, go to stage
two.
If solution agreed, do
not go to stage two. If
changes affect other
project parties, record
them onto a form
for circulation.
Finish
If solution to problem
cannot be agreed at
progress meting, go
to stage three.
If solution agreed, do
not go to stage three.
Solution to problem
recorded in meeting
minutes.
Finish
Problem resolution
meeting called for
committee.
Mutual way forward
for project agreed by
resolution committee.
Statement of way
forward recorded and
issued.
Finish
Resources Available
1. Ron
2. Darrell
If any project
party is not
content with
the way
forward
agreed by the
resolution
committee
then they may
take normal
recourse
through the
contract
Partnering Workbook
Problem
Identified
Stage One
Step 5: Continuous
Improvement
Eliminate waste and rework
Pursue cost saving opportunities
Apply Value Engineering
Share risks and benefits
Step 6: Joint Evaluation
Specific criteria to evaluate team
effectiveness
Teamwork
Timely problem resolution
Comparisons of survey responses
identify areas of improvement and
potential problems
Partnering Workbook
Step 7: Project Completion
- Celebrating Success
Formal joint management review
Review accomplishments
Review disappointments and lessons
learned
Festive celebration (picnic or banquet)
Recognize special contributions
Contract Administration
Issues
Agenda:
Opening a project
Job philosophy
Authority and responsibility
Temporary facilities
Time inspections and tests
Contractor submittals
Administrative activities
Suspension or termination of the work
Summary
Opening a Project
After award of contract, the contractor:
Make arrangement for the required policies
of insurance
Obtain permits
Order long-lead purchase items
Check the site to determine availability of
storage and work staging areas
Make arrangemnets for off-site disposals of
surplus or waste materials
Opening a Project
Owner schedule a preconstruction meeting:
Meet contractor and other key personnel
Identify areas of responsibility
Establish job philosophy (set the ground rules)
Set up requirements for on-or off-site meetings
and set the frequency of such meetings, who
should attend
Discuss problems anticipated in construction
Discuss special sequence of operations or
shceduling limitations
Issue written Notice to Proceed
Set precise start date - good practice
Opening a Project
Outline project requirements on paper
Contractor submittals
Material testing
Operational testing
Reviews and updates required in
schedules
Delivery dates of equipments
Procedures for handling of all
communications
Job Philosophy: Instructions to
Field Personnel
Basic Policy
Contractors to be present at meetings
with subcontractors
Job openning philosophy with
contractor: Be firm but fair
Responsibility and Authority
Be a team member; avoid adversary
relationship with contractor
Job Philosophy: Instructions to
Field Personnel
Inspections and tests to be made promptly
Inspect the work as it progresses
Avoid overly-literal specification interpretation
No field change without PM approval
Followup all required corrective work until
completed
Do NOT supervise any construction nor the
contractor’s personnel
No authority to stop the work; notify PM if
necessity arises
Job Philosophy: Instructions to
Field Personnel
No authority to require quality exceeding
that covered by the contract Instruction to
the contractor thru Superintendent or PM
Document all action taken
Documentation
All field personnel must keep approved type
diary
Contractor submittals to be documented
both coming in and going out
Business telephone calls should be
documented
Job Philosophy: Instructions to
Field Personnel
Keep photographic records of progress
All orders to the contractor must be in
writing
Communications
Contractor submittals handled only thru
Resident Project Rep.
Surveys and special inspections requested
thru Resident Project Rep.
Orders to contractor from ANY source must
be submitted thru RPR
Job Philosophy: Instructions to
Field Personnel
Changes
Field orders and change orders must be
handled thru RPR
No changes on oral instructions without
written confirmation
No significant deviations from plans and spec
except by change order- even if no cost or
time extension is involved
Job Philosophy: Instructions to
Field Personnel
Other
All inspection should be at irregularintervals
Inspector should be one of the first ones at
the job and one of the last to leave
not a police officer
contractor’s prior experience
lack of understanding of the A/E
requiremnets
Authority the Owner
Award contracts in connection with the
same work
Retain a specific portion of the
contractor’s monthly payments
Carry out portions of the work with
owner’s own forces in case of
contractors default or neglect
Withhold payments from the contractor
for adequate cause
Authority the Owner
Terminate the contract for cause
Inspect the work as it progresses
Direct the contractor to expedite the work
Use completed portions of the work
before contract completeion
Make payment deductions for incomplete
or faulty work
Responsibility of the Owner
Furnish property surveys- locate project on site
Make periodic payments to contractor
Make extra payment in case of unforseen events
Allow extensions of time to complete the work for
unanticipated events
Cannot intrude into the direction and control of
the work
Cannot issue instructions as to method or procedures
unless specifically provided for in the contract
Not to interfer unreasonably with construction
operations
Responsibilities of A/E
No contractual relationship with the
contractor
Represents the owner in the administration of
the contract
Surveillance of the construction operations
Overseeing the progress of the work
See that quality of work and materials are in
conformance with the requirement of the
drawings and specifications
Job inspection and approval of materials
Responsibilities of A/E
Inspect and approve the contractor’s program of
field procedure and even the equipment that is
planned for use, as well as the schedule and
sequence of operation
Does not mean they assume responsibility
Instruct contractor to speed up the work to recover
delay
Interpret the requirement of the contract
Decision is binding and final - questions of fact only
what materials, quantities, or quality
Question of law- no jurisdiction - time completion,
claims, and liquidated damages
The General Contractor
Fewer rights and more obligations
Construct the project in accordance with drawings
an specifications
Expected to deliver a completed project in the
alloted time
Only severe contingencies can relieve the
contractor from contractual obligations
Responsible for the management and control of
construction operations to maintain established
work schedules, promote safe working condition
Must be on site at all time during working hours
The General Contractor
Conform to all laws concerning job safety,
licensing, employment, sanitation, insurance,
zoning, building codes …
Comply with tough rules relating to air polltion,
noise, dust, trash disposal, sanitary wastes, pile
driving, blasting, riveting, demolition, fencing,
open excavations, traffic control, and house
keeping
Must guarantee all work and materials on the
project
Insurance coverage - protection of persons and
property in, on, and adjacent to construction site
Resident Project
Representative (Inspector)
Agent of the owner, consultant, CM firm
Inspect the workmanship, materials, and
manner of construction to determine whether
requirements described by the plans,
specifications, contract documents, codes… are
met by the obseved work
Inspection is to detect, recognize, and report
deficiencies in material or workmanship, or non
compliance with applicable plans, specifications,
procedures, standards, codes or regulations
Contractor Quality Control
Rep.
Inspect its own work
Assure that all inspections and tests are made
Checking of all material and equipment
delivered
Achieve quality construction by preventing
defective work rather than discovering
deficiencies that may result in costly removal
and replacement
Take action to correct the deficiency even
though it means stopping the work
Time of Inspection and
Tests
Contractor must give Engineer timely notice
Tests and inspections required by public agencies
must usually be paid for by the contractor
Tests and inspections required by the contract
documents will be paid for by the owner
Work covered prior to required inspections must
be uncoveredfor inspection at contractor’s
expense
Failure of an inspector to observe a deficiency
does not relieve the contractor of obligation for
performance
Time of Inspection and
Tests
Extra inspections required as the result of a
deficiency must be paid for by the contractor
The contractor must provide all materials for
testing at its own cost and expense
Contractor Submittals should be handled in a
systematic, consistent, and orderly manner.
Changes in the systems during a job lead to
confusion, errors, and abuses
All submittals transmitted directly to Resident Project
Rep.
Administrative Activities
of Engineer
Coordinate and provide general direction of
work and progress
Review contractor’s schedules regularly
Assist in resolution of construction
problems
Evaluate contractor claims for the design
firm
Maintain log of change orders
Administrative Activities
of Engineer
Maintain log of contractor submittals
Develop and administer a quality control
program
Proofs of compliance
Qualifications of testing services
Define required tests
Maintain QC reporting systems
Maintain QC records of all tests and test results
Establish frequency of testing
Administrative Activities
of Engineer
Physically inspect all construction every day
Observe all contractor tests
Maintain daily diary and construction records
Maintain record drawing data
Review contractor progress payment requests
Review contractor’s change order requests for
design firm
Assure that construction area is safe
Participate in field management meetings
Administrative Activities
of Engineer
Provide negotiation assistance on contractor claims
Reveiew and recommend contractor value engineering
proposals
Supervise inspection forces and field office staff
Report field conditions that prevent original construction
On unit-price projects, obtain accurate field
meauremnents
On all jobs, verify contractor’s monthly work quantities
Assist scheduling and ordering required field services
Suspension
Suspention is to cease all or part of the
work without actual contract
termination
The owner may order the contractor in
writing to suspend, delay, or interrupt all or
part of the work for:
budgetary limitation
updating equipment
failure of contractor to carry out orders or
perform any provision of the contract
unsuitable weather conditions
Termination
Owner to discontinue all or any part of
the work being done by a contractor
Contractor default and bankrupcy
Contractor abandoning the work
Unnecessary delay
Issue a change order
Summary
Do not get the idea that you should
become a police officer, and everyone in
the contractor’s camp is out to defraud
The majority of contractors and their
employees want to do a good job
Keep good records and communication
Read and understand all contract documentation
Document anything that may change the terms of
the contract
Keep as complete records as possible invariably
the effort pays for itself in the long run: they
protect you, your employer and your client.
Changes and Extra Work
Changes and Extra Work
This Session
Definition
Impact costs
Basic principles in handling change orders
Types of changes
Elements of a change order
Recommendations for good practice
Evaluation of delays in the Work
Change Order
Is a written agreement to modify, add to, or
otherwise alter the work from that set forth in
the contract documents at the time of opening
bids, provided that such alteration can be
considered to be within the scope of the original
project; otherwise, a contract modification may
be required.
It is the only legal means available to change the
contract provisions after the award of contract
Addenda Vs. Change Order
ADVERTISING
BID
AWARD
SIGN
DATE
OPENING
DATE
AGREEMENT
2
3
4
1
Changes by
Addenda
No Changes
Changes by
Change Order
Change Order
Could be addition to or deletion from the work
changes in the method of execution or manner of
work performance
change in owner-furnished materials or facilities
change in the contract time or order of the work
correct errors in the plans or specifications
direct results of contractor suggestions that are
approved by the owner and its agents
Changes may involve
a price change in the contractor’s favor
cash credit to the owner
no price change at all
Impact Costs
Often, an owner fails to realize that the cost of
changes in the work may well exceed the cost of the
immediate change itself.
Many change order forms contain an exculpatory
(disclaimer) clause that precludes a contractor from
recovery of impact costs.
Parties sometimes agree on the price of a change in
both time and money, but the contractor wants to
reserve the right to file for impact costs.
Contractor would be ill-advised to sign off on a
change order without a clear reservation, if it expects
to claim any future impact costs.
if owner refuses to accept reservation, contractor should
perform the changed work under protest without signing the
change order or agreeing to a price
Basic Principles in Handling Change
Orders
No work should be included beyond the scope of the
base contract.
The identity of the individuals authorized to request and
approve change orders should be established early.
During the pre-execution conference, a meeting should
be held to establish the change order handling
procedures.
All changes in the work must be authorized in writing
prior to the execution of any change.
The scope of a change order must be clear, and a
request for a change order proposal should contain
enough information to enable the contractor to make a
realistic estimate.
Basic Principles in Handling Change
Orders
The contractor should submit its proposal to execute
a change order as soon as possible after receiving
the request and the owner’s approval or rejection
should follow as soon as possible.
The proposal should be fair. It should recognize the
contractor’s right to include:
overhead and profit percentages
compensation for legitimate time-delay claims
compensation for legitimate impact costs if any
Types of Changes
Directed changes
owner directs the contractor to perform work that differs from that
specified in the contract
easy to identify, mutually recognized
disagreements tend to center on questions of financial
compensation and the effect of change on the schedule
Constructive Changes
is an informal act authorizing or directing a modification to the
contract caused by an act or failure to act
defective plans and specifications
engineer’s interpretation
higher standard of performance than specified
improper inspection and rejection
change in method of performance
change in the construction sequence
owner nondisclosure
impossibility/impracticability of performance
must be claimed in writing within time specified in the contract
major source of disputes
Sample of a change order
PROJECT TITLE
PROJECT NO.
CONTRACTOR
CONTRACT NO.
CONTRACT DATE
The following changes are hereby made to the Contract Documents:
Construction of access bridge abutment No. 1 drainage system; and
Reset two penstock bearing plates. All in accordance with revised DWG S-17209
Revision 3, dated 28 August 1991.
Justification:
Unforeseen soil conditions
CHANGE TO CONTRACT PRICE
Original Contract Price: $
Current contract price, as adjusted by previous change orders: $
The Contract Price due to this Change Order will be (increased) (decreased) by: $
The new Contract Price due to this Change Order will be: $
CHANGE TO CONTRACT TIME
The Contract Time will be (increased) (decreased)by
calendar days.
The date for completion of all work under the contract will be
Requested by
Recommended by
Ordered by
Accepted by
dated
dated
dated
dated
Recommendation for good practice (AGC)
Percentages for overhead and profit to be applied to change orders
Length of time that a change order proposal price is to be
considered as firm
Determination of the individual representative of the owner who is
authorized to approve change orders
Procedures to be followed in the submittal of change order
proposals
Change order forms to be used
Time extensions required, if any
The detail required of contractors when submitting change order
proposals - will a complete breakdown of all costs be required?
Brief description - Descriptive drawings
Overtime necessary due to change orders - consideration of
decreased productivity
When materials or equipment is to be removed due to a change,
which party owns the removed items, and who removes them from
the site of the Job ?
Responsibility for record drawings brought about due to the change
orders