Pricing Change Orders & Differing Site Condition Claims
Presented by Scott Lowe, P.E., Principal
Trauner Consulting Services
Preparing and evaluating pricing for change orders is an essential project management skill. On the surface, it seems like a simple task. But like most things related to money, appearances can be deceiving.
Interesting and very refreshing. Everything is to the point.
Scott is the favorite wuith the audience. He always provides relevant content and gets very high review scores from attendees.
Good job - our company learned a lot.
I liked Scott's addressing questions as they came in; it adds to the "live" feeling. (via chat)
The webinar begins by introducing the many “methods” for pricing changes and differing site conditions. The methods discussed will range from basic estimates, to pricing using actual costs, to problematic “total cost” approaches. Of particular importance will be a thorough discussion of the methods allowed by typical construction contracts, common terms and what they mean, and the pitfalls of each method. The presentation will then shift to a discussion of each component of change order and differing site condition pricing. Every change has three parts – entitlement, impact, and cost. To many, the most important part is cost.
At the conclusion of this webinar, you will be well prepared to establish and defend your position with regard to the pricing of changes and differing site conditions. You’ll know what to expect from the owner and the contractor; when to agree, and when to respectfully disagree. With this knowledge, you can ensure that your organization is properly compensated for the work you do or you can ensure that you pay only a fair and reasonable price for the change order work that must be performed.
In particular, because it is often an issue when the change or differing site condition causes a delay, we will focus on the issue of recovering overhead costs associated when the project is delayed. Pricing overhead can be a tricky combination of contract and accounting issues.
We will touch on the issue of inefficiency, both because it can lead to substantial added costs and because it is a costs that can be easily overlooked.
The webinar concludes with a detailed discussion of how present requests for reimbursement for changes and differing site conditions persuasively. This includes the discussion of how to conduct an effective review and offer reasonable and appropriate criticisms of the contractor’s costs proposal.
Listen to this information-pack program to review how to:
- Select the appropriate method to price the change or differing site condition
- Document, price, and present the costs associated with labor, equipment, material and overhead
- Determine a fair and reasonable price for profit
- Present a request for additional compensation completely and persuasively
- Critique pricing proposed by others fairly and in accordance with your contract
This event features key insights from our knowledgeable construction expert:
J. Scott Lowe, P.E., is a Principal with Trauner Consulting Services. He is the co-author of the book "Construction Delays." He is also past Chairman of CMAA's Time Management Committee, leading the development of CMAA's scheduling standards and procedures. Mr. Lowe was the lead developer of and an award-winning instructor for the National Highway Institute's course "Managing Highway Contract Claims: Analysis and Avoidance." He has analyzed delays and delay costs on hundreds of construction projects throughout his 30+ year career. His expertise lies in the areas of critical path method scheduling, construction claim preparation and evaluation, dispute resolution, technical document development, contract administration, and cost analysis. He has directed and performed virtually all types of analyses, including delay, productivity and efficiency. On many occasions, he has also provided expert testimony at deposition, arbitration, and trial.