Tip of the Month
“Don’t be caught short”
It’s easy for contractors to overlook the real cost impact of change orders on their projects.
Depending upon the size of the change modification, merely pricing the cost for the additional material, labor, equipment and subcontractor costs could be a misconception.
This could be only part of the cost equation.
The changed condition must be analyzed for the overall impact on the project schedule timeline. If the change is significant enough where the project schedule time is affected, this will increase the contractor’s daily field operating costs and consideration must be given to recover these added expenses.
RC Building Associates Inc. can assist you in determining what the true impact of a change in work scope means to your bottom-line.
