JSince JGMC team members are also builders, we have the technical knowledge of time and materials required to accomplish different tasks. This enables us to negotiate equitable change orders which are favorable for our clients. Most importantly we resolve cost issues in a timely manner, therefore allowing all parties to maintain focus on delivering a successful, quality project on schedule. Timely change order review and resolution is the key to accurate project control. When change orders occur, JGMC’s goal is to resolve all changes within thirty days in order to reduce closeout issues. JGMC also recognizes that a clear line of communication needs to be established between ourselves and our client. Therefore, JGMC monitors and updates our client on crucial issues daily through communication and weekly reporting of all change order issues. As an example of JGMC change order review and negotiation protocol, the following review procedures are the current standards we use for our projects:
1. When change orders occur, each contractor change order proposal is properly recorded into the project log and then reviewed for merit.
2. If the change has no merit, it is returned, “rejected” with reason(s) for rejection. If merit exists, the change is analyzed for cost and/or time extension.
3. For cost impact review, JGMC performs a detailed estimate with a quantity survey. Then we add unit costs for labor and material based on current costs for the area or region the project occurs, and double check using an estimating manual cost manual and/or the use of an estimating consultant. We add the contractual mark-ups and our estimate is complete.
4. We conduct a line-by-line comparison between our estimates versus the contractor’s to determine accuracy and/or problem areas. Problem areas are reviewed with the contractor and negotiated down to a fair and reasonable value.
5. The negotiated change order is presented to the client with a record of negotiation, its justification, construction manager’s estimate, and contractor’s change with a detailed back-up from the contractor and/or subcontractor.
6. Time extensions are verified by analyzing both a pre-delay schedule to a post-delay schedule, which includes a detailed fragnet for the area impacting the schedule. Claim Digger, a scheduling comparison software program, is utilized to confirm both the pre-delay and post delay schedules.