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(PM-3705) Field-Level Enhancement Practices For Change Orders

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Level: Intermediate
TCM Section(s):
10.3. Change Management
Venue: 2021 AACE International Conference & Expo

Abstract: Changes from as-bid work scope are common in construction and therefore construction contracts typically have provisions for handling change orders.There is a significant amount of published information concerning change orders but this information fails to focus on field-level enhancements in this area.Both from experience and discussions with other industry professionals has found that failures in handling change orders at the field level are a key reason for profit fade.

Therefore field personnel need enhanced procedures for recognizing changes and then dealing with these changes.There are times when design-drawing changes seem to be purposely not called out but these same changes will significantly increase line-item work scope.Field personnel can take advantage of technology such as electronic document analysis to spot changes that otherwise would have been missed in plans.An approach to improvement should also look at pricing of change orders on a lump-sum basis unless unit-pricing is in place.Daily time cards and time-card automation can both help to capture all labor costs.Field-first-line supervisors, often, are ill-suited to the paperwork involved in change order management and require training.Corrections for these above issues and others are essential and the focus of this discussion.