Construction Delays and Other Claims - Construction Project Scheduling and Control - page 346

0 inches wide. Let us consider the following five different scenarios, along with the
cost associated with each:
Scenario 1 : The owner makes the change before the design is completed. The cost
is minimal (the difference in the door prices).
Scenario 2 : The owner makes the change after the design is completed but before
the bidding begins. There may be a minor additional cost associated with the
architect redoing some of the drawings and specifications.
Scenario 3 : The owner makes the change after signing the construction contract
but before the doors are delivered and the work on that portion has started. The
cost may still be minimal, but this has become a change order. The contractor
may try to make some “extra profit.”
Scenario 4 : The owner makes the change after the door openings have been framed
(in masonry walls) but before the walls are finished. The change includes the cost
of widening the door openings, that is, demolition of part of the masonry walls,
and installing new door frames. If the doors have been delivered, there is an extra
charge for delivery and restocking.
Scenario 5 : The owner makes the change after everything has been finished. This is
a more significant change order that includes widening the door openings, that is,
demolition of part of the masonry walls that are covered by drywall and painted,
and installing new door frames. There will also be a cost to redo the masonry
walls, drywall, paint, and for cleanup. The doors—after painting—may not be
returnable to the vendor, so their cost will be a waste, which needs to be added
to the total loss.
Scenarios 4 and 5 have the potential to impact the project schedule.
In certain cases, the change order process may be shortened if there exists a certain
level of trust between the owner and the contractor, when the owner is constrained
due to lack of time or when the change order has a minimal economic impact. In such
cases, the owner may issue a “directive” to the contractor before authorizing the cost.
The contractor performs the work and then charges the owner later.
REASONS FOR CLAIMS
Claims usually occur because of “unexpected” events or developments, regardless of
who is at fault. Unlike other industries, no two construction projects are the same.
Even when two projects have the same design and are performed by the same com-
pany, they may differ in site conditions, climate, regulations, subcontractors, market
conditions, and team members. Consequently, it is difficult to anticipate every event
that will impact a construction project, even when the projects are substantially similar.