Change Orders - Stop! We need to figure this out.
Change Orders - Stop! We need to figure this out.
Change Orders - Stop! We need to figure this out.
A change order also referred to as a contract change note refers to changes in the scope of work agreed by the owner, contractor and architect or engineer. In other words, extra work for the contractor which requires additional resources, extra time, lots of backup and quite frankly a pain the ass. Sorry, but unless you have experienced this in the trenches and had to fight for your change orders to be approved, this may not be for you. Of course, there are change orders that are not disruptive and just add to your existing scope in a very seamless way, but you can’t always be so lucky. On larger projects or specifically high-rise construction, a change order is usually a big deal. Not only do you have to fight to get them approved, but good luck getting paid any time soon or making up the days on your schedule.
Picture this, you are the general contractor self-performing the shell work and you have over 100 of your men working up in the building, one or two tower cranes swinging over your head on rent, sub-contractors waiting online for the buck-hoist 20 deep and steel stacked up everywhere watching you as you walk by, like an anxious child waiting to go to the park. Suddenly you see the architect, engineer and owner walking out of the office trailer and they sort of look your way then look at each other and try to hide a smirk but keep walking in the other direction. Minutes later the developer’s project manager climbs up to the 4th level where you are getting ready to pour concrete that same day and says, “Stop! Come to the office, there is a revision you need to understand before you proceed.” “What do you mean stop? We already have concrete scheduled for this afternoon”, you reply. “OK, well cancel the concrete and come to the office there have been some changes and we need to figure this out”, he says. “I’m going to cancel the concrete, but I need that in writing, and you are going to pay for this mobilization”, you say firmly. “My finish crew and pump are already here and if I don’t pour today, we can’t receive that big delivery scheduled for tomorrow or pour the ramp to stay on schedule”, you add. “Like I said, let’s figure this out”, he repeats. As he walks away you squint your eyes looking at the back of his head like a sniper remembering he doesn’t have a clue of the ramifications or a final say in the matter and is just a messenger. In fact, he is probably going to repeat exactly what you just said to his boss and start creating a problem taking everything out of context.
At that moment the whistle blows and everyone stops for lunch. You tell the pump and finish crew not to move and you will be right back. Your first thought is, there must be a way we can still pour and not stop production. As you walk slowly towards the office, every possible scenario is running through your head, your lips are whispering what you think you are about to say and your fingers are counting on their own. As you open the door to the office the first face you see is the owner’s rep and you have to swallow the baby burp that just shot up to the roof of your mouth and is burning your throat. The developer’s project executive is cool, but you can already tell by his face he was also blindsided. You decide to sit down and don’t even say hello because you are turning numb and it starts. The owner’s rep takes the lead and says, “You’re behind schedule and this place is a mess”. You have zero patience for his bullshit, so you sit up in your chair sort of close to his face and say, “Don’t go there, what is going on? I was just told to cancel my pour and I’m incurring expenses while we are sitting here by the minute”. The superintendent jumps in, because he can see your veins starting to show on your neck and says, “This place is not a mess, the truth is, it has rained a lot so we have to figure out the schedule moving forward but we do have to cancel the pour. Sorry, but the engineer is adding some additional reinforcement and there are going to be some additional embeds too”. Luckily the superintendent knows what he is talking about and you immediately focus on the task again and before they can turn a page on the structural plans you already know the area and exact columns they are referring to. While you were recreating a 3D model of the building in your head on the way into their office you remembered during pre-con months ago you brought this possibility to their attention to avoid exactly what is happening now and they ignored you. You stay silent with your best poker face and decide to hear what they have actually figured out so far, so you can have time to pop up the original RFI, refresh your memory and then hit them in the morning with a stop work order request and change order for the additional work.
I can go on forever with this scenario because it’s ever so familiar, but the truth is nobody wins. Change orders can cause a significant impact and they are just a part of construction we have to deal with on a regular basis. Hopefully you have a good enough agreement which details the change order directive in depth and an experienced project manager who can create the change order request with all of the backup necessary to get the approvals quickly.