Consulting-Specifying Engineer - October 2007 - (Page 29)

Professional Practices CHANGE ORDERS Change order language makes a difference BY LEONARD W. WHITE, PE, RCDD, Senior Electrical Engineer, Stanford White, Raleigh, N.C. he term “change order” (CO) refers to the formal method by which contract documents for a construction project are modified. While generally used to add work to a project, a CO can be used to modify any item that is related to the construction process. It’s fairly safe to say that COs universally are disliked and much maligned by everyone who is a part of the construction process, with the possible exception of the contractor. It is unfortunate that COs have become synonymous with cost overruns, delays, and poor performance of the design team. A bit of thought about the construction process will reveal that the CO is a logical, cost-effective, and necessary component in the construction project delivery. It has been said many times that “construction is not manufacturing.” The key ingredient of the manufacturing process—repetition—is missing from the construction process. It is rare that a construction design is erected more than T the CO process. The formal documents used by the American Institute of Architects (AIA) to accomplish project changes are the Change Order form (AIA Document G701) and the Construction Change Directive (AIA Document G714). While neither of these forms provide a place to enter the reason for the CO, many similar forms used by government agencies and private organizations require the design professional to enter a reason for the change. The information gathered by such agencies occasionally is used to evaluate the designer, so it is important to be certain that the correct cause be assigned to all change orders. While not all CO forms provide a place to accommodate them, the following are the most common causes for COs: Designer request Designer request COs originate when designers notice something during the construction process that should have been shown differently on the contract documents. There are many reasons for this type of CO, but the main reason is that the designer wants to improve the design. If this is the case, the CO will either reduce the project cost or add value at a relatively high value-to-cost ratio. A Designer request CO also can originate when the designer recognizes that a change is needed for any reason and is simply taking the initiative to issue the CO before someone else makes the request. In cases of this type, the Designer request designation is not really appropriate and obscures the true reason for the change. Contractor request A Contractor requested CO originates when the contractor wants the construction done differently from that shown on the contract documents. Reasons can be as simple as unavailability of building materials or time delays in obtaining specified materials, ease of Consulting-Specifying Engineer • OCTOBER, 2007 Change orders are much maligned, having become synonymous with cost overruns, delays, and poor performance, but they are actually a cost-effective component of project delivery. one time, so there is no opportunity to refine the design by observation of problems encountered in earlier designs. It will be noted that in cases where the same design is erected in more than one location—a fast food restaurant, for example—the number of COs falls dramatically after the first use of the drawings. In many projects, especially renovations, information critical to the design is available only after the demolition portion of the construction has begun. The construction contract must be issued before any work starts. After the contract for a project has been executed, the only way to change the design is through 29

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Consulting-Specifying Engineer - October 2007 Contents On the Web In the News M/E Roundtable How To Beat the Energy Codes Professional Practices Codes & Standards A Capital Job on Engineered Buiding Systems Going Green in Data Centers Overcurrent Protection: Fuses or Breakers? Third-Party Liability Management Report New Products Product Spotlight Jobs/Classifieds Specifier's Notebook

Consulting-Specifying Engineer - October 2007

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