CHANGE ORDER PRICING & BEST MANAGEMENT PRACTICES

March 5, 2025 – This seminar is focused on three areas.  First, proper management of change orders which involves setting up mechanisms to handle the change orders as they occur on the project.  Proper management attempts to preempt later disagreements.  Second, legal considerations involve prior case studies and acceptable theories of recovery.  The third area of focus in this seminar is how to quantify loss of labor efficiency and price change order including forward pricing.  Few studies have been undertaken in this area including the widely acceptable Hanna/CII study. The course is divided into multiple topics, including:

1. Change order [definition, types (formal, constructive, and cardinal), contract language]
2. Why change order cost more and typical recoverable costs
3. Change Orders Pricing (3 levels)
4. Theories of recovery (total cost, modified total cost, measured mile and Hanna method
5. What cost can be added, at what percent and why (20 legitimate cost items)
6. Change order and schedule compression including the impact of overtime, overmanning and shift work