Change happens. Change is inevitable. The construction industry has accepted the fact that changes will occur on almost all construction projects. The industry is aware that changes often lead to disputes; but the knowledge that change is coming is not the same thing as being prepared for it. To determine whether we are truly prepared for change, we look to our contracts.
A review of standard and custom contracts for construction and professional services highlights an absence of specific requirements for processing changes. Specifically, most contracts do not define what the contractor is required to submit, what the professionals are required to review, when submittals and reviews must be completed, or when the contractor can expect payment once the work has been performed. There is a general consensus that change will happen, but our contracts rarely define how to deal with it when it does.
The lack of detailed contract requirements leads to a lack of organization when the first change occurs on the project. Because few contracts define a systematic process to manage the anticipated changes, the parties usually have conflicting expectations. The disputes that arise often relate to both the pricing of the change and the length of time between the performance of the work and the eventual execution and payment of the change.
This paper addresses the implementation of a systematic change order review process to reduce conflicts when changes occur. While it is preferred that the requirements for managing changes be contractual, it is possible to implement a system after contract award.
Reprinted with the permission of AACE International,
209 Prairie Ave., Suite 100, Morgantown, WV 25601 USA.
Phone: 800-858-COST/304-296-8444. Fax: 304-291-5728.
Internet: http://www.aacei.org. E-mail: info@aacei.org.
Copyright 2010 by AACE International. All rights reserved.
