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Credits

Sponsored by Lorman Education
Product ID: 409456EAU
 
Credit & Course Provided by:

Calculating the Cost of a Change

OnDemand Webinar (59 minutes)

You need a lot more than a calculator to determine and forecast change costs in construction.Changes on construction costs are inevitable. That means that often-difficult negotiations of the appropriate price for the change are also inevitable. The objective of this topic is to help systematically strip away the mystery, the magic, the misconceptions, and the uncertainty surrounding the pricing of changes. Contractors will learn what they must include to be made whole. Owners will learn both what they should pay and what they shouldn't pay. CMs and attorneys, and the consultants and accountants that advise them, will learn what is needed to accurately and persuasively price a change. The focus is on the hard topics - the legitimate damages associated with delay, the real costs of inefficiency, and the balancing concerns when pricing acceleration.

Authors

Bill Haydt, Esq., Trauner Consulting Services, Inc.

Agenda

Methods of Calculating a Standard Change Order

• Estimates

• Actual Cost

• Standard Change Order Pricing

• Labor, Equipment, Material, Subcontractors

• Field and Home Office Overhead

Calculating Delay, Acceleration, and Inefficiency Costs

• Labor and Material Cost Escalation

• Idle Equipment

• Extended Field Overhead

• Home Office Overhead

Other Costs

• Interest, Bonds, Consulting and Legal Fees, Consequential Damages

Mitigating Costs