The Impact of Changes on Construction Cost and Schedule

Changes can be expected, but those directing the change must understand the cost and schedule consequences. There is always a ripple effect throughout the project, and overhead administrative and engineering effort must be added to evaluate, process, and manage each change. The following recommendations and ideas are a sampling that may improve the change process and/or minimize the adverse effects of changes. The complete list is detailed in Research Summary 6-10.

• Owners freeze the scope as early as possible in the design process.
• A strong constructability program will reduce the potential for changes.
• Proposed engineering changes should be reviewed and authorized through a structured change control program.
• Owner risks should not be transferred to the contractor.
• Fixed-price contracts should specify owner and contractor jointly own that float.
• Owner and contractor should establish the mechanisms and procedures for administering changes at the outset.
• The contract Changes Clause should include price and schedule adjustments for direct and consequential effects.
• Owners, engineers, and contractors should establish a team approach to change management and openly communicate.
• Changes should be resolved in a timely manner as they occur. Do not defer their resolution until the end of a project. Contractors should not leave pricing of changes to estimators alone. It should be a team effort.
• All project stakeholders should make their personnel more knowledgeable about the consequences of changes.