A no-drama approach to changes and change orders

{"version":"0.3.0","atoms":[],"cards":[],"markups":[["i"]],"sections":[[1,"h2",[[0,[],0,"The\nnature of change"]]],[1,"p",[[0,[],0,"Changes on construction\nprojects are the rule, not the exception. Construction documents are not\nintended to be exhaustive or to anticipate every possible circumstance; many\nfactors outside the architect\u2019s control can affect the cost or schedule of a\nproject once construction has begun. Everyone expects changes on a construction\nproject, but somehow changes still become a common source of claims against\narchitects, alleging errors and omissions in the preparation of the\nconstruction documents. The inevitability of changes can be exacerbated by the\ntendency of some contractors to bid low on a project, eliminating profit in the\nbid in hopes of winning the job and recouping the profit through change orders."]]],[1,"h2",[[0,[],0,"Changes\nand the role of the architect"]]],[1,"p",[[0,[],0,"The client and contractor sign the construction contract; the architect\ndoes not. The architect has no authority to authorize changes to that contract.\nOnly the parties to the agreement\u2014the client and the contractor\u2014 may approve\nchanges, including changes to the contract sum or contract time."]]],[1,"p",[[0,[],0,"Construction contracts should contain provisions for preparing and\nexecuting documentation related to changes. Some standard construction\ncontracts authorize the architect to interpret the contract documents and make\nminor changes that do not affect the cost or the schedule. The architect should\nbe mindful of the conditional nature of this authority, and not make changes\nthat affect cost or schedule without the client\u0027s prior knowledge and express\nwritten consent."]]],[1,"p",[[0,[],0,"Under the terms of typical\nconstruction contracts, the contractor, client, and architect must sign all\nchange orders. The role of the architect is to advise the client on whether or\nnot the change is in general conformity with the overall design concept and\nintent, and whether it adequately protects public health, safety, and welfare.\nIn other words, the architect has a duty to apply the same standard of care in\npreparing, reviewing, and approving change orders as in the preparation of the\noriginal construction documents."]]],[1,"h2",[[0,[],0,"Keep\nyour cool"]]],[1,"p",[[0,[],0,"Changes typically take place in a highly charged atmosphere. The work is\nunder way on the construction site, and the client is spending a lot more\nmoney. There can be considerable pressure on the architect to move things along\nquickly. Every member of the architect\u0027s team should be aware that the degree\nof professional liability is the same no matter how or when construction\ndocuments are prepared. The possible implications of a proposed change on other\nparts of the project are especially important considerations. Because changes\noccur in an environment of greater haste and urgency, there is a heightened\nneed to track them in an organized way, with sufficient documentation to show\nthat the architect met the reasonable standard of care."]]],[1,"h2",[[0,[],0,"Educate\nand inform the client"]]],[1,"p",[[0,[],0,"Before construction begins, it may be useful to advise the client that changes are inevitable and that some changes may add costs. The project budget should include a line item for contingencies sufficient to cover the cost of possible changes that might be reasonably anticipated by analyzing statistical data on projects of similar type, size, and scope."]]],[1,"p",[[0,[],0,"It is important to propose\nchanges to the client in sufficient detail to enable the client to make an\ninformed decision and the contractor to incorporate each change into the work.\nProper documentation takes time. The owner-architect agreement should include\nprovisions to properly compensate the architect for that time. It may be helpful\nto review these provisions with the client before construction begins and to\nexplain the scope and importance of the architect\u2019s services related to\nchanges."]]],[1,"h2",[[0,[],0,"Administering\nchanges"]]],[1,"p",[[0,[],0,"The following may be helpful in administering changes and change\norders."]]],[3,"ul",[[[0,[],0,"Use standard change order forms."]],[[0,[],0,"Use the same care in preparing change orders\n as in preparing the original documents."]],[[0,[],0,"Initiate a change order only after\n considering its necessity and propriety, alternative methods of\n accomplishing the work, the mode of compensation, the effect on contract\n time and other parts of the project, and an estimate of additional cost."]],[[0,[],0,"Inform the contractor and client immediately if the time needed to prepare drawings and specifications related to changes will affect the construction schedule or cost."]],[[0,[],0,"Document the reasons for changes."]],[[0,[],0,"Communicate all changes and the reasons for\n them to the contractor and client."]],[[0,[],0,"Do not issue any change orders until the client approves them in writing."]],[[0,[],0,"Document all telephone conversations related\n to changes, either in a log book or a memorandum to file. Include the\n date, time, the name of the person to whom you spoke, and a summary of the conversation."]],[[0,[],0,"File correspondence related to changes so\n that it remains accessible."]],[[0,[],0,"Inform the client if a change order involves additional compensation to the contractor."]],[[0,[],0,"When a contractor proposes equipment substitutions, require the contractor to obtain approvals from all applicable regulatory authorities."]],[[0,[],0,"Before altering construction documents, make\n a reproducible file copy of the original. It is essential to be able to\n track any changes made to construction drawings after the contract is\n signed."]],[[0,[],0,"Maintain an in-house record of all construction change directives and the history of all drawings. This may help control the cost of a job as well as future claims. It is important\n that the history of changes be traceable through drawing revision blocks\n and construction change directives."]]]],[1,"p",[[0,[0],1,"The\nAIA collects and disseminates Best Practices as a service to AIA members\nwithout endorsement or recommendation. Appropriate use of the information\nprovided is the responsibility of the reader."]]]]}