contract change management
TRANSCRIPT
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CONTRACT CHANGE MANAGEMENT
Mark Adams PEFacility Services SupervisorNov. 5, 2014
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Fight
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Bigger Fight
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Paperwork
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Confusion
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Stress and Frustration
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Where to Go
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What to Do
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Meet the Experts
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-Jim Dreier – Contract Administrator (CA) Facility [email protected] 303-342-2674
-Annette Kimble – Contract Administrator (CA) Infrastructure [email protected] 303-342-4681
-Neal Swift – Project Controls Estimator – AIM [email protected] 303-342-4550
-David Mashburn – Director of Facility Services – AIM [email protected] 303-342-2610
-Glenn Frieler – Director of Infrastructure Management – AIM [email protected] 303-342-2933
-Jen Stein – Project Controls Scheduler – AIM Development [email protected] 303-342-2324
-Mark H Adams – Manager of Facility Services – AIM [email protected] 303-342-2762
Meet The Experts
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Alphabet Soup
RFI – Request for Information
CN – Change Notice
CCR – Contractor Change Request
COD – Change Order Directive
TCOD – Task Change Order Directive
CO – Change Order
TCO – Task Change Order
BMS – Business Management Services
Unifier – New DIA Project Management Software produced by
Oracle (Primavera)
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Common Contract Types
− Unit Cost− Hard Bid− On-Call Task Order− Mainly used with our Civil Infrastructure Projects
− Lump Sum− Hard Bid− On-Call Task Order− Negotiated/Best Value/Design Build− Mainly used with our Building/Facility Projects
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How does a Change get Started?
− RFI’s− Design Initiated Change (CR)− Owner Initiated Change (CR or CN)− Contractor Initiated Change (CCR)− Deficiency or NCR
How Does a Change Order Get Issued?
− Change Notice (CN)− Change Order Directive (COD)
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CHANGE MANAGEMENT
Annette Kimble & Jim DreierContract AdministratorsNov. 5, 2014
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NEGOTIATION REQUIREMENTS
Neal SwiftProject Controls - EstimatorNov. 5, 2014
- Change Order Submission and Pricing Requests– Explain concisely, accurately and with appropriate detail
– Why added scope and / or time is required
– Include pictures to illustrate issues difficult to explain
– How or what caused potential change
– Provide basis for determination of time required and other
constraints that may include additional cost and time
– Understand that reviewer will already have comprehensive
knowledge of your contracted scope of work and be familiar
with project - outline major points26
– Negotiation Meetings
– When level of complexity requires face-to-face meeting
– Come prepared with logs, reports, project docs, photographs
– Receipts and invoices for materials and equipment
– Cost of labor to be fair and reasonable, verified with LMT
– General Info
– Follow contract & general condition before starting added work
– Weather – understand what is considered Adverse Weather
– Mark-up’s, Staff & OH costs and pass-thru costs27
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What’s the difference between a Change Order Directive (COD) and a Change Order (CO)?
− Change Order Directive (COD)− Directs the contractor to
immediately proceed with the work
− Only used when time does not allow the standard Change Notice (CN) process to be used
− 90% of DIA’s Cost Estimate or T&M with a Not-To-Exceed (NTE)
− A change order (CO) will be issued when final amounts are agreed to
− Change Order (CO)− Proposed work is negotiated
first and then completed− Final amounts to be agreed to
in negotiations− Only mechanism to completely
revise contract terms, dollars or durations
− References Change Notices (CN) and Change Order Directives (COD)
COD vs. CO
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REDUCING AND AVOIDING CHANGE ORDERS
Glenn FrielerDirector of Infrastructure and QANov. 5, 2014
Change Orders
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Misinterpretation of the Plans
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Unclear Plans and Specifications
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Working at an Airport
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Things DIA is Doing to Limit Change Orders
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- Work on improving the quality of our plans
- Involving contractors during the design process
- Limiting additional work that is added to a contract
- Working with the contractor when a change condition occurs
- Using “Common Sense” as we interpret our specifications
- Set realistic timelines for the completion of our projects
Change Condition
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Plan Error
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Missing Items
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Working Together
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REDUCING AND AVOIDING CHANGE ORDERS
David MashburnDirector of Facility ServicesNov. 5, 2014
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Avoiding Change Orders
The best defense is a good offense
One of our Key Performance Indicators (KPI) is to be below 15% on change orders now. In the future, we want to be below 5%. Currently, on all our projects we are at 4%. Going to BIM and a stronger plan review process will reduce further.
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Reviewing models with designers leads to stronger coordination. With BIM, the plans are prints of the model, with eSpec, the keynotes in the plans are tied to the specifications.
Plan and Model Review Process
Contractors review models with sub-contractors because it is more cost effective to virtually build first.
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Reviewing plans with more people in less time.
A 2015 KPI is: turning around plan reviews in under 17 days.
Plan Review Process
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Improved Planning for projects allows more time for project teams and reviews = reduced changes due to rushing emergency projects
Project Planning Process
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REDUCING AND AVOIDING CHANGE ORDERS
David MashburnDirector of Facility ServicesNov. 5, 2014