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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
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