Change Order Pricing and Documentation
Change orders are where margin is won or lost after award. Disciplined pricing and documentation protect the number.
Establish the basis
| Situation | Pricing basis |
|---|---|
| Work of similar character and conditions to BOQ items | Contract rates |
| Similar work, different quantity or conditions | Contract rates adjusted (pro-rata) |
| Work not in the BOQ | Fair valuation — built-up rate from first principles |
| Impractical to measure | Daywork (labour + plant + materials at agreed rates + %) |
Additions and omissions
Omissions are valued at the same rates as the addition basis. Note that omitting work does not always save the full rate — preliminaries and fixed costs may not reduce.
Time and disruption
A change can extend the programme (entitling extension of time and time-related cost) and disrupt unchanged work (loss of productivity). Price these separately and support them with records — they are frequently under-claimed.
Documentation — before you proceed
- Change request with reference to the instruction or drawing revision.
- Description of added and omitted scope.
- Priced build-up, time impact, and any disruption claim.
- Client approval (signed) — or a written instruction to proceed with price to follow.
- Update to the contract sum and the schedule of values.
Proceeding on a verbal instruction without a logged change is the single biggest source of unpaid work.
EngEst Pro’s Change Orders log records every scope addition or deduction with reason, priced value, and approval status, and rolls the net approved change into the bid totals and the contract sum automatically.
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