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Training Tuesday – Cumulative Impact of Change Orders

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Frequently, change orders cause a significant disruption to a construction project. The disruptions cause changes in the planned schedule and increase costs through rework and decreased labor efficiency for the contractor. Productivity and profit will suffer from this loss in labor efficiency. Owners have the right to initiate changes on their project after the contract has been signed.

The difficulty arising from change orders is determining an equitable adjustment for the parties involved. Contractors need to be compensated for impacts that the change-directed work have on their estimated baseline efficiency. Owners believe that the additional costs of the changes should be minimal due to the similar nature of the work.

This seminar is focused on three areas. First, proper management of change orders which involves setting up mechanisms to handle the change orders as they occur on the project. Proper management attempts to pre-empt later disagreements. Second, legal considerations involve prior case studies and acceptable theories of recovery. The third area of focus in this seminar is how to quantify loss of labor efficiency and price change order including forward pricing. Few studies have been undertaken in this area including the widely acceptable Hanna/CII study.

The course is divided into multiple topics, including:

  1. Change order [definition, types (formal, constructive, and cardinal), contract language]
  2. Why change order cost more and typical recoverable costs
  3. Theories of recovery (total cost, modified total cost, measured mile and Hanna method
  4. What cost can be added, at what percent and why
  5. Change order and schedule compression including the impact of overtime, over-manning and shift work

Instructor: Dr. Hanna is a professor of construction engineering and management at the University of Wisconsin. As a registered professional engineer in Canada and the US, Dr. Hanna has been an active construction practitioner, educator and researcher for over 25 years. He has been involved with construction management and dispute resolution on a wide variety of engineering, consulting and construction projects worldwide. Dr. Hanna has presented over 1,000 one-day seminars and instructed more than 20,000 people in the U.S. and Canadian construction industry on how to improve construction labor productivity and site performance through proper pre-construction planning.

Where and When
September 6
Burnaby
Course Information and Registration

 

Other courses coming up soon:

Negotiation Skills WorkshopThe truth is that in our professional lives we don’t get what we deserve – we get what we negotiate. In this seminar you will learn a proven, practical step-by-step approach to win-win negotiations and how to protect yourself from “hardball” negotiators.

Where and When
July 24
Kamloops
Course Information and Registration

July 26
Victoria
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September 17
Burnaby
Course Information and Registration

 

Spill Response Course (Level One): This course slated for August 14 in Nanaimo is appropriate for personnel who work with, or could come across hazardous materials in the course of their duties. Learn the various Canadian legislation and regulations (both Federal and Provincial) governing hazardous materials, identification of HAZMAT, spill response procedures, personal protection equipment, and much more.

ICBA offers a wide range of courses. You can check out the complete course offerings here.

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