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Change Orders – Setting Expectations

Change Orders – Setting Expectations. Generalizations. Change orders, as a % of construction cost, increase as the contract amount decreases Change orders, as a % of construction cost, increase for modernization projects as compared to new construction

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Change Orders – Setting Expectations

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  1. Change Orders – Setting Expectations

  2. Generalizations Change orders, as a % of construction cost, increase as the contract amount decreases Change orders, as a % of construction cost, increase for modernization projects as compared to new construction The majority of change orders, as a % of construction cost, occur in site construction, rather than building construction

  3. Common Sources of Change Orders Discovery of unforeseen physical site or building conditions Designer mistake (error, omission, lack of coordination of documents) Owner-requested changes in the project Regulatory agency requirements

  4. Discovery of Unforeseen Conditions Examples: Septic tank Unsuitable soils Buried debris

  5. Designer-Caused Change Orders Designers not perfect “Error or omission” versus “negligence” Legal precedent Designer insurance “Value Added” concept Net cost to Owner Change order premium

  6. Owner-Requested Change in Scope Intentional change in contract amount or schedule Usually educational program related Responsive to bids and available funds

  7. Regulatory Agency Requirements Change in regulations Change in interpretation of regulations New regulations Change is staff

  8. Woodland High School Specifics Normal K-12 new construction projects change order % = 2%-3% of construction cost WHS budget for construction change orders = 5% of construction cost Expect a change order to come before the Board about once a month Made up of multiple “Construction Change Directives”

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