Tools to Reduce Change Orders

A couple of fairly simple steps can help reduce the number and size of change orders on your public works projects.

1. Have clear plans and specifications. Review the bidding documents you receive from the architect or engineer before advertising for clarity, consistency, and comprehensiveness.
2. Conduct pre-bid site inspection meetings. The bidders who attend can be a valuable tool in pointing out areas of ambiguity in the bidding documents.
3. Issue addenda to clarify or revise any problem areas in the bidding documents. This will all help ensure that the bidders are bidding on the project with a common understanding.
4. Consider a claim of error. If, after receipt of bids, the low bidder submits a claim of error asking to be relieved of liability for the bid due to an error they made in preparing the bid, think carefully about the request. Generally, it is not in the best interests of a public agency to award a contract to a bidder who has requested out of its bid due to an error. If you award to them, they will look for every opportunity to make up the difference through change orders.
5. Hold a partnering session after award of the contract. A partnering session is an opportunity for the contractor, owner, and designer to spend a couple of hours, a half day, or a full day together talking about communications protocol on the project and developing a sense of teamwork and how they all intend to cooperate on the project.
6. Ensure that your contract has clear provisions for change orders and payment procedures.
7. Make sure you know your contract. A good contract for an owner offers many helpful tools to effectively manage the project and to reduce the number of change orders.