As the age-old saying goes, "Change is inevitable." However, in the realm of construction projects, a more fitting adage might be that "change orders are inevitable." Change orders represent the primary catalyst for financial escalations, disputes, and schedule disruptions among general contractors, subcontractors, owners, and consultants.
Are you experiencing financial losses due to changes, finding it challenging to control schedules, facing delays in subcontractor pricing submissions, or encountering delays in owner-issued change orders? Are you potentially missing out on recoverable change order costs?
The "Contractor’s Practical Guide to Change Order Pricing and Management" workshop offers invaluable guidance and practical tools to contractors for effective change order management. By enhancing preparedness for change orders, simplifying processes, and increasing change order approval rates, this workshop aims to significantly boost effectiveness in managing change orders.
This comprehensive workshop serves as a practical guide, covering critical aspects of construction contracting, including preparation, pricing, collection, submission, negotiation, and payment for all project changes. Participants will work with a manual comprising over 25 example checklists, forms, and letters. Through step-by-step procedures and practical examples, this workshop equips contractors with the necessary tools and knowledge to successfully navigate change order pricing submittals and issuance processes.
Course Content:
- Identifying the conditions that lead to change orders and implementing strategies for proactive preparedness.
- Understanding the Request for Information (RFI) process and leveraging RFIs for obtaining answers and initiating changes.
- Exploring the Supplemental Instruction (SI) and its implications, including strategies for managing risks associated with improperly issued SIs.
- Reviewing contractual obligations related to the change order process, such as overhead and profit considerations, valid pricing periods, and more.
- Detailed examination of the step-by-step change order process, including:
- Establishing a master change control log.
- Managing subcontractor pricing, including distribution, receipt management, review, and correction return.
- Evaluating internal company costs, including direct, indirect, and consequential expenses.
- Assessing schedule impacts and additional general conditions costs, including time impact analysis and fragnet creation.
- Compiling and organizing proposed change costs, covering internal, external, and schedule impact expenses.
- Emphasizing the importance of thorough supporting documentation.
- Timely submission of proposed change pricing packages and understanding qualifications to protect the contractor's interests regarding pricing validity.
- Managing consultant and owner reviews and issuance of change orders.
- Recognizing situations requiring proactive action, including issuing notices and "Notice of Delay" if necessary for prompt change order issuance.
- Managing change orders and issuing subcontractor change orders.
- Identifying and preparing for common change order issues.
- Exploring the risks associated with change directives and emphasizing the importance of accurate daily labor timesheets and cost tracking.
- Understanding the significance of issuing "zero dollar" subcontractor change orders to ensure all parties are working from current documents.
- Evaluating the cumulative impact of changes and the contractor's responsibility to anticipate future impacts based on current changes.
The workshop offers an exclusive, comprehensive manual serving as a reference and guide during the sessions. Drawing from over 40 years of accumulated knowledge in the construction industry, this manual is an invaluable resource. It features practical how-to guides, checklists, and templates, serving as a foundation for implementing new processes and procedures both in the office and on the jobsite.
Course Format:
- Virtual instructor-led training (live and online)
- This course is facilitated by the instructor on the AdobeConnect platform. Access information from the instructor will be provided to you in advance of the training.
Course Requirements (Technology & Participation):
This course requires full face-to-face interaction and participation from both the instructor and students. In order to attend, you’ll must make sure you have the following:
- Computer or laptop with webcam (webcams are mandatory): This course will involve 100% on-screen interaction with your instructor and classmates, reading/viewing on-screen content like slides or videos, and interacting via typing with questions or responses. For this reason, you must have a webcam and use a full computer/laptop, and we do not permit students to attend using a tablet or cell phone.
- A quiet space with minimal distractions: Please plan to be fully engaged in the class, and clear your work schedule just as you would for attendance in an in-class program.
Course Dates:
- April 28, 2025 - 12:00pm - 3:30pm
- April 29, 2025 - 12:00pm - 3:30pm
Attendance in both sessions is mandatory for course completion.
Next Scheduled Date: May 21 & 22, 2025
Course Credits:
- 2 - CCA Gold Seal Credits
- 7 - BC Housing CPD Points
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This course is offered in partnership with construction associations across western Canada.
