CHANGE ORDERS
Change order costs on a construction project are often more than a simple estimate of the direct
costs.
Many contract change order provisions require an assessment of all direct and
indirect costs, including the effects of out-of-sequence work and acceleration.
Usually the specifications require that the project delay costs be included with the
change order request, including a fragnet of the critical path delay.
This becomes a daunting task for the project participants themselves when already burdened
with building and monitoring the contract work impacted by changes. The task of
evaluating complex changes can become overwhelming.
Fortunately, Delta CPM can help evaluate and present the effect of project changes
in a professional and reliable manner to provide you with the tool you need to assess
project changes and to negotiate payment.
A CASE IN POINT
A Major Pharmaceutical Company
During the construction of a major pharmaceutical company's construction of a new 100+
million dollar facility, extensive change orders were required. It was critical for
the owner to deliver the project as scheduled, and time extensions were not granted.
In this construction environment of complex changes and critical path delays, Delta CPM
was requested to evaluate the impacts of each of the multiple changes and determine fair
and appropriate costs. Working with a number of the major subcontractors, Delta CPM
was able to assist with change order presentation and negotiation, forestalling the need
for the project to go to claims.