During a design-build project, construction is 40% complete when the owner submits a change order to increase scope. What should you do FIRST?

During a design-build project, construction is 40% complete when the owner submits a change order to increase scope. What should you do FIRST?

• A. Meet with the design-builder to gather the change order pricing
• B. Prepare an estimate of the change order's cost and schedule impacts
• C. Prepare a revised budget contingency
• D. Meet with the owner to try to dismiss the change order

Answer: (B)

When a change order arrives, the first thing to do is quantify its effects on both cost and schedule. You need a solid estimate of how much the change will add or remove in direct costs, any indirect or overhead implications, and, crucially, how it will affect the project timeline—especially the critical path and milestones. Having a clear cost and schedule impact allows you to price the change accurately, communicate-supported implications to the owner, and decide on whether the change drives any schedule recovery actions or budget adjustments. That’s why preparing an estimate of the change order’s cost and schedule impacts is the best first step. It provides the data you’ll use to negotiate a fair price and to update the baseline as needed. Meeting to gather pricing without understanding the full impact can lead to mispricing, while preparing a revised contingency or dismissing the change without assessing effects both skip essential analysis.

When a change order arrives, the first thing to do is quantify its effects on both cost and schedule. You need a solid estimate of how much the change will add or remove in direct costs, any indirect or overhead implications, and, crucially, how it will affect the project timeline—especially the critical path and milestones. Having a clear cost and schedule impact allows you to price the change accurately, communicate-supported implications to the owner, and decide on whether the change drives any schedule recovery actions or budget adjustments.

That’s why preparing an estimate of the change order’s cost and schedule impacts is the best first step. It provides the data you’ll use to negotiate a fair price and to update the baseline as needed. Meeting to gather pricing without understanding the full impact can lead to mispricing, while preparing a revised contingency or dismissing the change without assessing effects both skip essential analysis.