Cha ng e Orde rs A Study Se ssio n April 6, 2016 Me a sure Q Ste e ring Co mmitte e
Wha t is a Cha ng e Orde r? An AME NT to a c o nstruc tio n c o ntra c t NDME T ypic a l c ha ng e s: Sc o pe o f Wo rk Co ntra c t Pric e Co ntra c t Co mple tio n T ime Ma y b e a n inc re a se , de c re a se o r no c o st o r time impa c t
Wha t’ s inc lude d in a c o nstruc tio n c o ntra c t? Co ntra c t a nd F o rms, inc luding Bid F o rm Co nstruc tio n Dra wing s Co nstruc tio n T e c hnic a l Spe c ific a tio ns Ge ne ra l Co nditio ns a nd Supple me nta ry Co nditio ns
Wha t c a use s Cha ng e Orde rs? Unfo re se e n c o nditio ns in c o nstruc tio n E me rg e nc y c o nditio ns no t c a use d b y Co ntra c to r Owne r re q ue ste d c ha ng e s (usua lly sc o pe o f wo rk) Arc hite c t/ E ng ine e r e rro rs o r o missio ns in the c o nstruc tio n do c ume nts Co de / inspe c to r re q uire me nts (Re g ula to ry Ag e nc y re q uire me nts) T ime de la y – c ha ng e s a g re e me nt fo r c o mple tio n da te ; ma y o r ma y no t ha ve a n a sso c ia te d c o st Othe r, e x: una va ila b ility o f spe c ifie d pro duc ts
Wha t do we do to a vo id o r minimize Cha ng e Orde rs? No te tha t e a c h pro je c t is uniq ue , a o ne -o ff de sig n, a nd b uilding s a re c o mplic a te d with lo ts o f inte r-re la te d b uilding syste ms. Prima ry fo c us: PRE VE NT ION 1. T ho ro ug h due dilig e nc e o f e xisting c o nditio ns (pre -de sig n) Ac c ura te a sse ssme nt o f e xisting c o nditio ns; lo c a te a ny a s-b uilt dra wing s & spe c s Co nfirm o f e xisting unde rg ro und utilitie s Site g e o te c hnic a l inve stig a tio n Ha za rdo us ma te ria ls study a nd te sting
Minimizing Cha ng e Orde rs, c o ntinue d 2. Co mple te a nd we ll-c o o rdina te d c o nstruc tio n do c ume nts Re vie w o f de sig n do c ume nts a t re g ula r inte rva ls prio r to issuing fo r b id Co mplia nc e with b udg e te d sc o pe o f wo rk a nd Owne r re q uire me nts Co nstruc ta b ility, c o o rdina tio n o f disc ipline s, c o mple te ne ss I nvo lve a ll sta ke ho lde rs thro ug ho ut the de sig n pha se , so the diffe re nt Owne r pe rspe c tive s a nd re q uire me nts a re ta ke n into a c c o unt in the de sig n a s it de ve lo ps
Minimizing Cha ng e Orde rs, c o ntinue d 3. Ma na g e a nd minimize sc o pe c re e p during de sig n a nd Owne r c ha ng e s a fte r the pro je c t b ids Be c le a r with sta ke ho lde rs wha t sc o pe o f wo rk wa s b udg e te d a nd a ppro ve d b y the Bo a rd, a nd whe n the ‘ c ut-o ff’ fo r c o mme nt is during the de sig n pha se E ng a g e a ll te a m me mb e rs in prio ritizing sc o pe o b je c tive s to fa c ilita te de c isio ns 4 . L o o k a he a d during c o nstruc tio n pha se Pro je c t Ma na g e rs a nd Co nstruc tio n Ma na g e rs c o nsiste ntly lo o k a he a d o f the c o nstruc tio n pro c e ss to ide ntify po te ntia l issue s a nd pre -e mpt the m, o r re so lve the m with the Co ntra c to r prio r to the ne e d fo r a c o stly fix (a nd po te ntia l Cha ng e Orde r)
Pro c e ss fo r Cha ng e Orde r Appro va l Bo a rd Po lic y – De le g a tio n o f Autho rity fo r Po te ntia l Cha ng e Orde rs Ja nua ry 15, 2014 – o ne ye a r tria l (do we ne e d to e va lua te , re c o nfirm? ) De le g a te s a utho rity to Supe rinte nde nt/ Pre side nt, Vic e Pre side nt o f Co lle g e Ope ra tio ns, o r E xe c utive Bo nd Ma na g e r to a ppro ve a ll Po te ntia l Cha ng e Orde rs (PCOs) o n b e ha lf o f the Bo a rd Appro va l o f Cha ng e Orde rs (a g g re g a tio n o f PCOs) is re q uire d b y Bo a rd b y ra tific a tio n Re q uire s pro je c t ma na g e me nt te a m to ma inta in lo g o f a ll o pe n po te ntia l PCOs
Pro c e ss fo r Cha ng e Orde r Appro va l 1. Unfo re se e n o r e me rg e nc y c o nditio ns tha t ha ve to b e ha ndle d imme dia te ly in o rde r to no t de la y c o nstruc tio n pro g re ss Co ntra c to r b ring s ite m to a tte ntio n o f Co nstruc tio n Ma na g e r with pro po se d fix a nd ro ug h ma g nitude e stima te o f time a nd ma te ria ls re q uire d. Co nstruc tio n Ma na g e r re vie ws it a nd b ring s it to a tte ntio n o f Pro g ra m Pro je c t Ma na g e r a nd E xe c utive Bo nd Ma na g e r. E xe c utive Bo nd Ma na g e r e va lua te s a nd if in a g re e me nt, issue s dire c tio n fo r the Co ntra c to r to pro c e e d with the wo rk o n a time a nd ma te ria ls b a sis, a nd sub mit a Cha ng e Orde r Re q ue st with the a c tua l c o st. T he fina l Cha ng e Orde r Re q ue st is sub mitte d, ne g o tia te d b y the Co nstruc tio n Ma na g e r if ne e de d, a nd g ro upe d to g e the r with o the r Po te ntia l Cha ng e Orde rs to b ring a fo rma l Cha ng e Orde r to the Bo a rd fo r a ppro va l o r ra tific a tio n.
Pro c e ss fo r Cha ng e Orde r Appro va l 2. Othe r ite ms Co ntra c to r a nd/ o r Co nstruc tio n Ma na g e r ide ntify Po te ntia l Cha ng e Orde r (ma y b e a n Owne r sc o pe c ha ng e re q ue st) Co ntra c to r de sc rib e s sc o pe o f wo rk a nd pro vide s a c o st q uo te Co nstruc tio n Ma na g e r e va lua te s the pro po se d c o st a nd ne g o tia te s if ne e de d to a rrive a t re a so na b le a nd mutua lly a g re e a b le c o st fo r the wo rk Co nstruc tio n Ma na g e r pre se nts Po te ntia l Cha ng e Orde r to Pro g ra m Pro je c t Ma na g e r a nd E xe c utive Bo nd Ma na g e r fo r re vie w Onc e a Po te ntia l Cha ng e Orde r ha s b e e n c o nditio na lly a c c e pte d b y the E xe c utive Bo nd Ma na g e r, a numb e r o f Po te ntia l Cha ng e Orde rs a re g ro upe d to g e the r into a fo rma l Cha ng e Orde r, whic h is sub mitte d to the Bo a rd fo r a ppro va l o r ra tific a tio n.
F unding fo r Cha ng e Orde rs Co nstruc tio n Co nting e nc y is inc lude d in Pro je c t Budg e ts fo r po te ntia l Cha ng e Orde rs – typic a lly 10% Whe re the Co nstruc tio n Co nting e nc y is he ld de pe nds upo n the pro je c t de live ry me tho d a nd type o f c o ntra c t De sign Bid Build de live ry me tho d (Pe rfo rming Arts, Sma ll Ca p pro je c ts) Co nting e nc y is typic a lly he ld b y the Owne r a nd is no t in the c o nstruc tio n c o ntra c t T he Co ntra c to r ha s b id e xa c tly a nd o nly the wo rk de sc rib e d in the c o nstruc tio n do c ume nts
F unding fo r Cha ng e Orde rs De sign Build de live ry me tho d (Auto te c h, Bio te c h, Sc ie nc e pro je c ts) Owne r’ s Co nting e nc y inc lude d within the De sig n Build c o ntra c t Sinc e Co ntra c to r a nd Arc hite c t/ E ng ine e rs o n sa me te a m, Owne r no t invo lve d in a ny c ha ng e s due to e rro rs a nd o missio ns Prima rily Owne r re q ue ste d c ha ng e s Co ntra c to r must sub mit sub sta ntia te d re q ue st fo r use o f Owne r’ s Co nting e nc y Distric t a lso ho lds sma ll Pro je c t Co nting e nc y o utside the De sig n Build c o ntra c t. I f a nd whe n the Owne r’ s Co nting e nc y within the De sig n Build c o ntra c t is e xha uste d, a nd a dditio na l c ha ng e s to c o ntra c t/ c o st/ time a re ne e de d, the De sig n Builde r wo uld sub mit a Cha ng e Orde r Re q ue st, whic h wo uld b e pro c e sse d a s pre vio usly de sc rib e d a nd b ro ug ht to the Bo a rd fo r a ppro va l. Go a l is NO CHANGE ORDE RS o n the De sig n Build pro je c ts
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