Change order process is a routine part of any construction project which can significantly affect the project’s scope, timeline, and budget. It is therefore essential to manage this process efficiently and transparently as part of the PMI Construction Professional exam’s preparation. This involves understanding as well as implementing the change order procedures, ensuring good communication, documentation, and project management skills.
1. Understanding change orders
Change order refers to work that is added or deleted from the original scope of a project. They are usually negotiated and approved after the initial contract is signed, hence a formal change order procedure is an essential part of any construction project.
2. Developing a change order process
A successful change order process largely depends on planning, communication and diligent record keeping.
- Step 1:Develop a change order policy that includes details like when a change order is required, who can authorize a change order, time frame for approval, and procedures for implementing the change.
- Step 2:Create a system for logging and tracking change orders.
- Step 3:Detail out the procedure for approving and denying change requests.
- Step 4:Establish a process for estimating change order costs, usually done by a cost estimator, using estimating software.
- Step 5:Document the process for implementing approved changes, ensuring good communication with all parties to avoid any confusion.
- Step 6:Regularly review and modify your change order process to ensure it remains effective and efficient.
3. Managing change orders
Clear communication is key in managing change orders. All parties should be informed of the change order process at the onset of the project.
Exemplifying this, if a subcontractor identifies a necessary change, they should fill out a change order request that outlines the proposed change, the reason for it, any impact on the project timeline and cost estimation. This request should then be reviewed by the project manager. The PM either approves or denies the change order, and communicates this decision to all relevant parties.
Here’s a basic change order log to track your change orders:
| Change Order No. | Description | Date Submitted | Submitted By | Estimated Cost | Approval Status | Effect on Project Timeline |
|---|---|---|---|---|---|---|
| 001 | Extra wall painting required in living room | 01/02/2021 | ABC Painting | $500 | Pending | +2 days |
4. Evaluating and improving your change order process
Upon completion of the project, it’s important to evaluate the effectiveness of your change order process. Scrutinize the records to identify any trends in change orders and their impacts. Are there repeat issues that could be avoided with better planning or communication? Are the changes generally beneficial or do they tend to derail the project? Using this information, you can refine your processes and avoid unnecessary changes on future projects.
While change orders are often seen as a sign of poor planning, they’re sometimes unavoidable due to unpredictable situations. A robust change order process minimizes the financial and time risks associated with these changes. As a PMI Construction Professional, developing and managing this process will be a vital part of your project management toolkit. Can also use project management software like Asana, Wrike or Trello which can aid in efficient change order process management.
To conclude, every construction project will have a unique set of change orders and challenges. A robust change order process allows for an orderly way to address these changes, keeping projects on track and ensuring clients are satisfied with the final result.
Practice Test
In a robust change order process, one of the key steps is identifying the change and its potential impact on the project. True or False?
- True
- False
Answer: True
Explanation: This is the first crucial step in the change order process. It is important to understand what is changing, why it’s changing and how it impacts the project scope, schedule and cost.
Communication plays a negligible role in managing a robust change order process. True or False?
- True
- False
Answer: False
Explanation: Communication is essential in managing a change order process. It assists in ensuring that all relevant stakeholders are aware of the changes, their impacts, the need for the changes, and the plan to implement them.
A robust change order process should necessarily lead to an increase in the project budget. True or False?
- True
- False
Answer: False
Explanation: A change order process can lead to an increased, unchanged or even decreased budget. The purpose of the change order process is to manage changes effectively and its effect on budget can vary based on the nature of change.
Which of the following are crucial components in a robust change order process?
- A) Documenting the change
- B) Evaluating the impact of the change
- C) Ignoring the stakeholders’ opinion in favor of the project team’s decision
- D) Implementing the change
Answer: A, B, D
Explanation: Stakeholders’ opinions should never be ignored, making option C incorrect. However, documenting the change, evaluating its impact, and implementing it, are essential steps in a robust change order process.
In the execution of the change order process, it’s significant to obtain the approval of stakeholders. True or False?
- True
- False
Answer: True
Explanation: This is important to get consent and a common understanding among all stakeholders for the change and its impact on the project.
The inability to create a robust change order process may result in which of the following?
- A) Increase in project risk
- B) Decrease in stakeholder satisfaction
- C) Project delays
- D) All of the above
Answer: D) All of the above
Explanation: A robust change order process is crucial for managing project risks, satisfying stakeholders, and keeping the project on schedule.
It’s unnecessary to update project baselines after executing the change order process. True or False?
- True
- False
Answer: False
Explanation: Updating project baselines is a fundamental part of the change order process. The change may affect the scope, schedule or costs, which necessitates an update to the baseline.
Change order processes need to be considering only during the planning phase of the project. True or False?
- True
- False
Answer: False
Explanation: Change order processes need to be considered throughout the life cycle of the project, not just the planning phase. They allow for flexibility and adaptation as the project evolves.
What is the main goal of a robust change order process?
- A) To make maximum project changes
- B) To prevent any changes in the project
- C) To manage and control changes effectively
- D) To increase the project budget
Answer: C) To manage and control changes effectively
Explanation: The goal of a robust change order process is to manage and control project changes effectively, ensuring that they are beneficial and do not disrupt the project unnecessarily.
A robust change order process helps to reduce project scope creep. True or False?
- True
- False
Answer: True
Explanation: By managing changes effectively, a robust change order process helps to control and reduce project scope creep, i.e., uncontrolled changes in the project’s scope.
Interview Questions
What is a Change Order in the context of project management?
A Change Order is a document used to record an amendment to the original agreement between a buyer and a seller in a construction project. This primarily covers changes in scope, budget, schedules, and specifications.
What factors necessitate creating a robust change order process in a construction project?
A robust change order process is necessary to maintain control over the project scope, budget, and schedule. It also helps in minimizing disputes, and ensuring that approved changes align with project objectives and client’s requirements.
How is a Change Order different from a Variation Order?
A Change Order usually refers to a change in the scope of work while a Variation Order includes changes in the scope of work, alterations in design, and changes in conditions or quantities.
What is the first step in creating a robust change order process?
The first step would be to define the change order process with all stakeholders to ensure its fully understood. It includes developing a change order form or template, setting up a system for tracking all the changes, and assigning responsibility for managing the process.
What are some key components of a robust change order form or template?
A good change order form or template should at least have the following: a clear identification of the project, details of the change (description, impact on project scope, cost, and schedule), reasons for change, and approvals section.
What is the next step after defining the change order process?
The next step is to effectively communicate this process to all project stakeholders. This includes training the team members on how to document, assess, and monitor changes.
Why is it crucial to involve key stakeholders in the change order process?
Involving key stakeholders ensures that all proposed changes align with project objectives and client requirements. This engagement also promotes transparency and accountability throughout the change process.
What is the importance of regular monitoring in a robust change order process?
Regular monitoring of the change order process allows for early identification of potential changes, ensuring that they are properly assessed, approved, and implemented. It also maintains control over the project’s outcomes.
How does maintaining a change log support a robust change order process?
Maintaining a change log provides a comprehensive record of all changes proposed, approved, and implemented. This enhances decision-making, ensures accountability, and supports dispute resolution, if necessary.
How can technology support a robust change order process?
Technology, such as project management software, can support the change order process by automating workflows, tracking changes, facilitating approvals, and providing real-time updates.
What is a change order proposal and how does it fit into the change order process?
A Change Order Proposal is a document that contains detailed information relationship with the potential change. It includes cost and time implications and how these changes may affect the project as a whole. This proposal becomes part of the change order process as it aids in the decision-making process regarding the acceptance or rejection of changes.
How is the robustness of a change order process assessed?
A robust change order process is usually assessed based on how effectively it facilitates the documentation, approval, and implementation of changes; minimizes project risks; and ensures alignment with project objectives and client requirements.
How can a Change Order process relate to risk management in a project?
The Change Order process is closely related to risk management as it helps in identifying and assessing the impact of changes, which could potentially introduce new risks to the project. These risks then need to be managed appropriately.
In the context of PMI-CP, what happens if a Change Order is not properly managed?
If not properly managed, Change Orders can lead to project scope creep, budget overruns, schedule delays, reduced quality, and in extreme cases, project failure.
Who are the typical signatories for a Change Order?
The typical signatories for a Change Order would include the Project Manager, Client or Client representative, and any other key stakeholder such as the Contractor, depending on the governance structure of the project.
extutorials.com