Building Design and Construction Handbook - Merritt - Ventech!

17.36 SECTION SEVENTEEN
This may necessitate redoing certain work, or at best, repairing deficiencies that
are discovered only after portions of the construction are in place.
Another disadvantage of fast tracking is that much less control exists over costs
than in a job where designs are complete when prices are solicited. This disadvantage
can be partly overcome, however, if the work is given to reputable, carefully
prequalified subcontractors and suppliers. Certain rules of thumb from past jobs
certainly will give an indication of what the final cost will be. But because of the
expected loss of efficiency and redoing of certain parts of the work, costs can be
expected to be higher. Nevertheless, such cost increases could be offset by resultant
savings in interest on construction loans, revenues accruing from earlier use of the
building, and avoidance of the effects of monetary inflation on the cost of the job
if it had been begun at a considerably later date.
Fast tracking lends itself particularly to professional construction management
as a form of contract, although the cost-plus-fixed-fee or cost-plus-percentage-fee
contract is applicable as well. (See also Art. 2.18.)
17.14 CHANGES, CLAIMS,
AND DISPUTE RESOLUTION
After a construction contract has been awarded to a contractor, and usually after
construction has begun, it may become necessary to make changes in the work that
are not covered by the contract documents. To avoid writing a new contract whenever
a work change is made, construction contracts usually include provisions for
change orders. These are legal documents that provide a means by which an owner
can order changes in the work or require extra work. Change orders may be issued
for the following reasons:
1. Change in scope. Specifications for building construction include a ‘‘Scope
of the Project,’’ which includes a general verbal description of the project. The
details are given in the technical sections of the specifications, each of which provides
a ‘‘Scope of the Work.’’ This is a statement of the work to be done under
that section. If any change is to be made in the project, a scope becomes involved.
Usually, the specifications give the owner the right to make changes in scope, with
specified compensation to the contractor.
2. Change in material or installed equipment. For any of a variety of reasons,
such as unavailability of a specified item or cost or time savings resulting from a
substitution, the owner or the contractor may request a change in building materials
or installed equipment.
3. Change in expected conditions. After the start of a project, a contractor may
encounter conditions not anticipated by the building designers and not covered by
the contract documents. For example, during excavation for the building foundations,
subsurface conditions may be encountered that are different from those described
in the plans and specifications. Or abnormal weather may interfere with
progress of the work or may damage work already completed. Or labor strikes may
occur. Change orders may be required to accommodate these unexpected conditions.
4. Change to correct omissions. During construction, the owner or the contractor
may discover that certain necessary work or extra work desired by the owner is not
covered by the contract documents. The owner will have to issue a change order
for performance of that work.