Change Order Mitigation

CHANGE

CHANGE ORDER MITIGATION

Our change order mitigation approach facilitates a streamlined process minimizing the exposure to budget overages and schedule impacts.

By thoroughly analyzing a change order claim and its justification, our cost team estimates the change order using the quantity takes-offs and the art and science of costing to negotiate the same proving out our position on behalf of the client in a reasonable and defensible process –not relying upon conjecture or assumptions.

To do this, we:

• Establish a structured change management process to evaluate and prioritize change orders effectively.

• Assess the impact of proposed changes on project scope, schedule, and budget, considering factors such as resource availability, contractual obligations, and stakeholder requirements in addition to whether the claim is a true cost to the owner or the contractor/CM responsibility and thus a contingency use.

• Conduct thorough cost-benefit analysis to evaluation financial implications of change orders and assess their alignment with project objectives.

• Provide our recommendations in narrative format backed up with cost estimates and discuss with the client team alternative solutions and negotiation strategies.

Our change order process also analyzes ancillary cost impacts that may not have been presented in the change order so full exposure of the risk is better understood and known.

Change Order Mitigation Experience

all

Scoreboard PPP

DCAMM

New 120,000 SF sports arena and 956-vehicle parking garage Change order mitigation; development strategy

Gut renovation/ rehabilitation of a 434,000 SF facility

Featured

Project: Raffles Hotel & Residences

Raffles Hotel and Residences is a new luxury hotel and condominium in the heart of Boston. It is the first hotel and residences in North America for the Raffles brand and was a 4.5 year engagement. The complex features 124 residences and a 147-key hotel in a new 36-story, 435,000 SF building. Amenities include a two-story sky lobby, five distinct restaurant options, a state-of-the-art spa with an indoor pool, rooftop garden terrace and lounge, and expansive meeting and function spaces.

CHA was responsible for:

Negotiation of contracts

• Risk mitigation

• Contingency usage approvals

Change order vetting and negotiation

HERE’S HOW WE CAN HELP

Cost Control Mechanisms

We will engage sophisticated cost control mechanisms leveraging cutting-edge software and methodologies. These mechanisms enable real-time monitoring and adjustment of expenditures throughout the project lifecycle, ensuring adherence to budgetary constraints and timely identification of potential cost overruns.

Risk Management Strategies

We will demonstrate a proactive approach towards risk management by delineating robust strategies to mitigate unforeseen expenses and schedule delays. By conducting comprehensive risk assessments and implementing contingency plans, the proposal aims to safeguard the project against financial uncertainties.

Value Engineering Initiatives

We emphasize efficiency and value maximization by incorporating value engineering principles to optimize project costs without compromising quality or performance. Working with the design team with innovative design modifications and alternative material selections, we seek to achieve cost savings while upholding project integrity.

Stakeholder Collaboration Framework

We understand the importance of collaborative engagement with stakeholders, fostering transparent communication channels and mutual understanding of cost-related objectives. By actively involving project participants in cost decision-making processes, we aim to promote accountability and alignment with project goals.

Our Cost Group Services

Cost Estimating

Master Planning

Initial Concept Review

Market Conditions & Cost Research

Life-Cycle Cost Analysis

Green & Sustainable Initiatives

Construction Options

Value Engineering & Value Management

Reconciliation & Negotiation

Cost Management

Change Order Mitigation

Cost Management

Actual Cost Reports: Budget vs. Committed vs. Actual Costs

Change Order Log Tracked Against CSI Division and Responsibility

Risk Log Identifying Exposure to Extra Hard & Soft Costs

Invoice Log

Payment Requisitions Compilation &

of Lien Waivers

Notice to Owner Log (Sub-contractor’s Lien Rights Filing)

Project Closeout – Final Cost Report

Cost Dispute Resolutions

Contract Negotiation

Scheduling

Schedule Analysis

Cost Loading

Schedule Creation

Recovery & Acceleration Analysis