Contractor's Practical Guide To Change Order Pricing and Management
Gold Seal: 2 Credits * BC Housing: 7 CPD Points
Description
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 is 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.
Workshop topics will include:
- Identifying the conditions that lead to change orders and implementing strategies for proactive preparedness.
- Understanding the Request for Information (RFI) process and leveraging RFIs to obtain answers and initiate 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 returns.
- 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.
- Manage change orders and issue 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 that serves 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 job site.
Important Note: This session is designed to be an interactive experience, similar to our in-person workshops. Participants should expect to interact with the instructor and other participants. Computers or laptops with a microphone 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.
Participants will receive an email with instructions on downloading and installing the program and the participant manual a few days before the session. The join links for the workshop will be sent to all participants 30 minutes before the scheduled start time.
If you have not received the first email with the download instructions and manual by the day before the session, please email training@icba.ca and a training team member will assist you.
Delivery Method: Virtual Session – Adobe Connect
Course Fee Includes: Access to the course, course materials, and a digital certificate upon completion.
This course is delivered in partnership with local and provincial construction associations across Canada. You will be participating with a group of industry peers from multiple regions.
Sharing a single registration between two or more individuals is not permitted. Please register each person that will be in attendance.
Prerequisites
There are no prerequisites to this course.
Who Should Attend
This workshop would be beneficial for:
- Contractors and Subcontractors: Individuals and firms responsible for executing construction work, managing change orders, and ensuring project profitability.
- Project Managers: Those responsible for overseeing construction projects, including managing change orders, negotiating with clients, and ensuring project success.
- Estimators: Professionals responsible for estimating project costs, including evaluating and pricing change orders accurately.
- Construction Managers and Supervisors: Individuals responsible for supervising on-site construction activities, managing subcontractors, and implementing change orders effectively.
- Project Controls Professionals: Experts in project scheduling, cost estimation, and risk management, who play a crucial role in managing change orders and ensuring project profitability.
Overall, anyone involved in the construction industry who deals with change orders who want to learn how to create repeatable and profitable processes for change order management.
Technical Requirements
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Computer or laptop
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This course will involve on-screen interaction with your instructor and classmates, reading/viewing on-screen content (slides or videos), and interacting via typing with questions or responses. For this reason, cellphones may not be adequate.
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Windows 10 or Mac iOS.
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Webcam (Mandatory)– in order to engage and collaborate, participants will be expected to have their webcams on for the duration of the class
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Microphone (Mandatory)
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Internet connection- For best results, you will want to ensure you have an internet connection with an upload/download speed of 3-5 Mbps. You can test your internet speed here. The minimum recommended speed is 1.5 Mbps, but anything below 3 Mbps may result in loss of quality or buffering. Ideally hardwired connection versus wireless for stability - connect your computer directly to your router using an ethernet cable, rather than using your home wi-fi.
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A quiet space with minimal distractions –The microphone will be engaged for interactive sessions. Please plan to be fully engaged in the class and clear your work schedule just as you would for the in-class program.
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Comfortable chair
What Previous Participants Have Said
"Everything was new. This was extremely helpful."
"Great course, learned alot and have more to learn as there is so much information."
"It was great, a lot of information. Thankful for the document handouts."
Course Credit Information
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This course is eligible for 2 CCA Gold Seal education credit and 7 BC Housing CPD credits upon completion.
Registrants seeking BC Housing CPD credits for this course must complete all course components before a certificate showing BC Housing CPD credits earned will be issued.
Registrants seeking gold seal credits for this course will be required to complete an assessment during the course to qualify to have the gold seal credit endorsement appear on their certificate of completion.