Responsibility:
Job cost modifications occur after the initial budget has been set up either for preconstruction or the initial construction set-up. This is either caused by needing to redistribute funds between phases, added funds from an owner change order, or a GMP update. You will work with your PA on the appropriate method to update the job cost budget. This can be done via an updated job cost set-up, the lines from an owner change order, or a narrative provided to your PA via e-mail or another document.
Responsibility: PM
A change item can be identified through an RFI, field condition, bulletin, etc.
Once a change item is issued on a bulletin or identified in an RFI, the project record documents should be updated in Procore. The PM will forward Bulletin, CCD, COR, RFQ, etc., for pricing by the relevant trade contactors. Request for quotations should include a due date. If a new subcontract is required, reference the Bidding and Procurement section.
For a professional services project, the PM will review trade contractor quotations for accuracy and completeness before generating a COR to the Owner. The exact process for processing change items should be reviewed and agreed upon by the Owner and A/E at the start of the project.
For a self-perform project, the PM should perform takeoff and apply appropriate pricing, including subcontractor pricing, to generate a quotation for the change.
Review your contract requirements and include the allowable markups for bonds, insurances, and fee. If a the OH&P has not been pre-established, use 7.5% for subcontracted work and 15% for self-perform work.
It is important to identify schedule impacts due to the change in scope of work and include the necessary time extension, or OT manpower on the COR, and update the Project Schedule.
Once a COR has been approved, create trade contractor change orders as necessary and update the Project Budget.
Supporting Resource:
Note: Depending on the software you're using for your change management please follow the appropriate folder.
Responsibility:
A change event can be identified through submittal mark ups, RFI’s, schedule updates/releases, field conditions and directives, bulletin, etc.
Review the contract to determine the notification requirements for a change event (duration) as well as the allowable mark up for OH&P.
Document the change event via email, document control (RFI, T&M Ticket, etc.).
Send out the change event documents to all subcontractors and vendors to get formal pricing. Provide a due date that allows you to gather all related costs to submit to the Construction Manager (typically 1 day before it is due).
Perform a takeoff of the change event for labor/material costs and apply appropriate pricing to the units.
Gather all related costs to the change event and submit it to the Construction Manager. Remember to clarify the change event with what is included/excluded. Also include whether the work will be performed on OT or if a schedule/duration increase is required to perform the work.
Update the Change Management Log including the date of submission.
Do not proceed with the work unless you are instructed to do so. Save the directive to proceed in the appropriate change management folder.
Once a change event is approved and a CO is received, update the Change Management Log with the date of approval and send out subcontractor/vendor change orders. A best practice is to NOT provide a CO to a subcontractor and/or vendor until once is received from the Construction Manager.
Responsibility: PM
Job Cost Projections should be done on a monthly basis, at a minimum, to ensure that you are staying on top of your project budget and reviewing commitments that are hitting the different phases on your project.
Once you have completed your job cost review and projections, run the GCC JC Variance by Cost Type and GCC JC Contract Status Report in Viewpoint, and email these reports to your Project Accountant and the Finance Director.
Supporting Resource:
Responsibility:
Change order pricing and negotiation applies to both subcontractor and supplier pricing submitted to Granger and Granger pricing submitted to owners. It is the responsibility of the project team to review and analyze the changes to ensure they are warranted (legitimate) and accurate. Ensuring they are approved for submission by the team before processing them or submitting them to the owner maintains credibility and builds trust. Reviewing the contract documents and requiring the appropriate amount of backup are ways to ensure accuracy. Other ways to confirm change order pricing is by consulting someone on the estimating team or comparing the rates with other similar trades in the industry.