CONSTRUCTION CHANGE ORDERS
COST MUNICIPALITIES MORE THAN MONEY
By MITCH TARZIAN, President, Tarcom Corporation
Change orders. Those budget-breaking words are
nerve-racking for many government officials and facility managers during office renovations and build-outs.
Change orders create headaches for every party
involved in the construction process — official, architect and contractor. Design or construction alterations
will cost both the municipality (which pays for additional materials and labor) and general contractor (who
loses money on the administrative costs required for
every change).
In addition, changes can cause the general contractor to lose momentum in the office project and delay
on-time delivery of the job.
What seems like a simple construction modification
can become a very time- and cost-consuming event.
Not only is there an added charge for new materials,
but the construction flow is disrupted to accommodate
the change.
For example, if the request for another window is
made after drywalling has been completed, the entire
scheduling of contractors goes awry. First, a carpenter
must cut a hole into the drywall for the window. If
conduit is in the way, an electrician must be called to
move the conduit. The carpenter then reframes the
window and a drywall contractor re-patches and tapes
the wall. This one window, in effect, becomes a separate, significant job within the job.
Scheduling each subcontractor also can become a
logistics nightmare. If each sub's timetable permits, the
change can be made in about two days. But if the
carpenter or drywaller is booked for a few days, this
one change may delay the project for a week or more
until work can be assigned.
Avoiding Change Orders
How can change orders be avoided? Open communication among all parties involved in the project is
the key.
Prior to the initial meeting with the general contractor and architect, government officials should meet
with the staff that will use the facility to discuss office floorplans and layouts. Input should be obtained during
this preliminary stage.
Drawings can be posted and staffs should be encouraged to review the new layout and provide comments. The number of private offices and windows,
type of lighting and placement of doors are some of the
issues that should be addressed and agreed upon.
This first — and crucial — step should help eliminate a majority of the problems that occur during construction.
When a consensus is realized among all the relevant
players, plans can be finalized with the architect and
general contractor. All three parties can then carefully
scrutinize and agree upon every aspect of the project
together.
General Contractor's Responsibility
If facility managers and government officials follow
these steps, they can just about eliminate the need for
change orders. However, general contractors must also
do their part.
When renovating existing office space, the architect
and contractor should make a list of potential problem
areas and anticipate changes or design flaws not noted
on the blueprints that may disrupt work flow. Power
sources should be verified and key mechanical areas
— such as 11 VAC duct work and plumbing lines —
should be carefully examined to ensure exact location.
Before renovating existing office space, for instance, the contractor should verify the power requirements and source. Can the electrical panel sufficiently supply power for the new space? If not, a
breaker panel should be added before the project begins. If the need for additional power is determined
while construction is under way, the project temporarily comes to a halt, change papers are filed for the panel
to be added, and the job flow is interrupted.
Monetary compensation cannot replace the problems, disruptions and delays that can result from
change orders. Therefore, it's in the best interest of both
the municipality and general contractor to reach a final
consensus on every element of the project before the
first stud is set.
January 1994 / Illinois Municipal Review / Page 7
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