Contract Modifications

This chapter introduces the tangible differences in the dynamics of estimating change orders. Changes can occur in project scope, contract amount, or contract time. Changes to the contract are aptly termed contract modifications and can be the source of disagreements or even outright battles between parties. Contract modifications fall into two main categories: change orders and construction change directives (CCD). The change orders have two additional considerations that make them different: how does the change impact the overall schedule; and where does the change order occur in the sequence of the work. The chapter explores these conditions and how they impact the cost of a change order. Many contract modifications have no impact on the project schedule. They are easily incorporated within the noncritical tasks that comprise a large portion of the critical path method (CPM) schedule.