Change Orders – Setting Change Orders – Setting Expectations Expectations
• Change orders, as a % of construction cost, increase Change orders, as a % of construction cost, increase as the contract amount decreasesas the contract amount decreases
• Change orders, as a % of construction cost, increase Change orders, as a % of construction cost, increase for modernization projects as compared to new for modernization projects as compared to new constructionconstruction
• The majority of change orders, as a % of construction The majority of change orders, as a % of construction cost, occur in site construction, rather than building cost, occur in site construction, rather than building constructionconstruction
GeneralizationsGeneralizations
• Discovery of unforeseen physical site or Discovery of unforeseen physical site or building conditionsbuilding conditions
• Designer mistake (error, omission, lack of Designer mistake (error, omission, lack of coordination of documents)coordination of documents)
• Owner-requested changes in the projectOwner-requested changes in the project
• Regulatory agency requirementsRegulatory agency requirements
Common Sources of Change OrdersCommon Sources of Change Orders
• Examples:Examples:o Septic tankSeptic tank
o Unsuitable soilsUnsuitable soils
o Buried debrisBuried debris
Discovery of Unforeseen ConditionsDiscovery of Unforeseen Conditions
• Designers not perfectDesigners not perfect
• ““Error or omission” versus “negligence”Error or omission” versus “negligence”o Legal precedentLegal precedent
o Designer insuranceDesigner insurance
• ““Value Added” conceptValue Added” concepto Net cost to OwnerNet cost to Owner
o Change order premiumChange order premium
Designer-Caused Change OrdersDesigner-Caused Change Orders
• Intentional change in contract amount or Intentional change in contract amount or scheduleschedule
• Usually educational program relatedUsually educational program related
• Responsive to bids and available fundsResponsive to bids and available funds
Owner-Requested Change in ScopeOwner-Requested Change in Scope
• Change in regulationsChange in regulations
• Change in interpretation of regulationsChange in interpretation of regulations
• New regulationsNew regulations
• Change is staffChange is staff
Regulatory Agency RequirementsRegulatory Agency Requirements
• Normal K-12 new construction projects change Normal K-12 new construction projects change order % = 2%-3% of construction costorder % = 2%-3% of construction cost
• WHS budget for construction change orders = WHS budget for construction change orders = 5% of construction cost5% of construction cost
• Expect a change order to come before the Expect a change order to come before the Board about once a monthBoard about once a month
o Made up of multiple “Construction Change Made up of multiple “Construction Change Directives” Directives”
Woodland High School SpecificsWoodland High School Specifics
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