Change Management

Question 1

Bill of Quantities stands for?

Answer 1

List of items with descriptions and firm quantities used as a cost control document under contract.

Question 2

Early Warning Notice stands for?

Answer 2

EWN - it is a notice of potential change that may affect costs or programme.

Question 3

Reasons for change?

Answer 3

Requests made by employer or contractor.
Value engineering is carried out to reduce cost.
A relevant event as set out by the contract (JCT)
Revisions to statutory requirements and regulations.
Agreed tender assumptions prove to be incorrect.
Unforeseen ground conditions are encountered.
Specified items are unavailable.
Additional works.

Question 4

Who carries the risk of change?

Answer 4

The employer is in most cases responsible for a change and can carry the related risk.

Question 5

Give an example where the employer may not be responsible for change?

Answer 5

If the contractor cannot deliver the obligations he set out to i.e. materials.
Under D&B it is common for the contractor to take the risk of statutory sign off such as building regulations.
If quantities have not been included in the contract and the contractor is taking the responsibility for this.

Question 6

What are changes called under the JCT?

Answer 6

Variations.

Question 7

Where is variation defined under JCT Standard Building Contract?

Answer 7

Clause 5.1

Question 8

Where is ‘change’ defined in JCT D&B

Answer 8

Still clause 5.1 - less emphasis on client driven change - treated typically as changes to client ERs

Question 9

Who should pay for change?

Answer 9

Depends entirely on the reason for it.
Those stipulated in the contract as bearing the risk.

Question 10

Reporting change, tell me about it?

Answer 10

Change items should be registered on a tracker
Distribute and file copies of change documents
Inclusion of any change meeting minutes
Follow up to ensure actions are completed such as issue of revised design information