For engineering changes, 7 principles, 7 details, and 2 procedures must be kept in mind

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When making engineering changes, it is necessary to keep in mind 7 principles, 7 details, and 2 procedures. One of the biggest concerns during the construction process is encountering engineering changes, as these have a significant impact on the cost-effectiveness, quality, and schedule of the project. How to deal with project changes is an issue that all those involved in a project should consider. I. Principles to be followed in handling engineering changes 1. The engineering design documents must be clear; approved documents cannot be altered arbitrarily. If a change is required, it must be reported step by step in accordance with the change classification hierarchy, and the change can only be carried out after approval. 2. Engineering changes must meet the requirements, standards, and engineering specifications; they should be carried out in an organized manner to reduce project costs, ensure project quality and schedule, while also taking into account the interests of all parties to guarantee the effectiveness of the changes. 3. Engineering changes must be carried out sequentially and cannot be broken down into multiple small-scale change plans. 4. When submitting a change request, a complete change plan must be provided, which should specify the reasons for the change, the original records, the revised design drawings, and the estimate for the cost of the changes. 5. Engineering changes require strict oversight by on-site supervisors, who must examine and evaluate the necessity of such changes based on measurement data and relevant documents. It is also necessary to carry out proper verification, measurement, and assessment of the engineering changes to ensure fairness and Rationality; only after following the prescribed procedures can such changes be approved. 6. Approval for project changes must be given within 7 to 15 days; strict adherence to this time frame is necessary to prevent any delays in the project schedule. 7. Once the project change is approved, the supervisor issues instructions for the implementation of the change based on the approval document. The contractor shall carry out the construction in accordance with these instructions and the requirements outlined in the change documents; furthermore, the costs associated with the project change must be reduced or increased accordingly. II. Details to Note When Handling Engineering Changes 1. Engineering changes exceeding the scope specified in the contract: When engineering changes occur during construction, it is important to ensure that such changes do not go beyond the scope defined in the contract. If they do exceed this scope, the contractor has the right to refuse to carry out the changes, or the changes can be implemented by first determining the price before making the adjustments. 2. Countermeasures for change procedures: In contract projects, it is common for the price to be discussed only after the changes have been implemented, which is extremely unfavorable for the contractor. If such a situation occurs, we can take some measures to protect our own interests. (1) Slow down the construction progress and wait for the outcome of the negotiation regarding the changes; if this increases one’s bargaining power, it will be possible to engage in fair negotiations with the client. (2) Strive for compensation on a time-based basis or based on the actual costs incurred by the contractor, in order to avoid disputes and conflicts arising from price wars. (3) The implementation process of engineering changes must be fully documented, including relevant photos, and submitted to the engineer for signature in order to prepare adequately for claims. 3. The contractor shall not make changes to the project on its own initiative. During the construction process, it is common for the contractor to make unauthorized changes to the project, which leads to issues with project claims. Therefore, if drawing errors are found or changes to the project details are necessary, it is first necessary to report this to the engineer; once approval is given, the project changes shall be carried out in accordance with the prescribed procedures. Otherwise, not only will no proper compensation be obtained after the change, but it will also cause problems for future projects. 4. The contractor must raise compensation issues during the process of signing change agreements. During discussions regarding project changes and the formulation of change agreements, it is necessary to clearly address compensation claims. It is important to reach an agreement in advance on the scope of compensation, the methods for calculating compensation amounts, and the timing of payment, and to sign a contract accordingly, in order to avoid disputes later in the project. 5. Pay attention to the quality of drawings during design. Defects and omissions in the design can directly affect the rationality and accuracy of the quantity list prepared by the project owner, which in turn may lead to errors in the quantities specified. When entering into a contract with the design firm, the project owner should conduct a thorough review of the firm’s qualifications, specify in detail various requirements for the project, and pay close attention to the quality of the design drawings. Accurate design drawings ensure that the quantities and costs derived from estimates are precise, thereby allowing some project changes caused by design errors to be effectively prevented at the initial stage. 6. Professional personnel are employed to control and manage engineering changes at the construction site. Generally, the construction party submits change requests and on-site visa forms, which are then signed and stamped by the engineer. Engineers need to have knowledge of law, contracts, negotiation, and engineering technology, as well as some experience in construction. This is a highly technical job; strict control over approval processes is necessary to reduce the number of changes to the project. During the construction process, it is strictly prohibited to expand the scale of the project or increase construction costs through changes to the project specifications. 7. Pay attention to the procurement of building materials. Material costs account for approximately 50% to 70% of the total project cost; therefore, it is necessary to determine all the building materials before finalizing the construction plan. Do not change them easily, as this could lead to cost increases in the event of any changes to the project. It is necessary to fully understand the supply and characteristics of local building materials, as well as the living conditions, standard of living, and policy requirements of the local population, and to analyze the construction capabilities of the contractors, in order to select building materials that are aesthetically pleasing, practical, and whose price is appropriate relative to the local standard of living. After construction begins, try to avoid changing materials to minimize such project changes. III. Procedures for Project Changes The project changes that occur during the construction process can be divided into two categories: those instructed by the supervisor and those requested by the construction contractor. 1. Engineering changes instructed by the supervisor. The project changes implemented by the supervisor in accordance with the actual needs of the project construction or the requirements of the project owner can be further divided into two categories: project changes issued as direct instructions, and project changes determined through consultation with the construction contractor. (1) Engineering changes directly instructed by the supervisor or the project owner. Engineering changes directly instructed by the supervisor are considered necessary changes, such as those required to raise quality standards as per the owner’s requests, design modifications due to design errors, and coordination of overlapping interferences during construction. At this point, it is not necessary to seek the opinion of the construction contractor; the supervisor issues a change order, with the consent of the project owner, requiring the construction contractor to carry out the work related to the change. (2) Project changes determined after consultation with the construction contractor. Such situations fall under possible changes; it is necessary to consult with the construction contractor before deciding whether to implement such changes, such as adding a new task that is outside the scope of the contract. At this time, the procedure for engineering changes is as follows: ① The supervisor first sends a letter of intent regarding the change to the construction contractor, outlining the specific details of the change as well as the owner’s requirements regarding the timing of the change, along with any necessary drawings and related documents. ②After receiving the supervisor’s notice of intention to make a change, if the construction contractor agrees to carry out the change, it shall submit a written proposal for the change to the supervisor. The content of the proposal includes an implementation plan that outlines the planned changes, the measures to be taken, the completion date, etc., as well as the cost requirements. If the construction contractor, upon receiving the supervisor’s request for a change, deems it difficult to implement such a change, it shall also notify the supervisor immediately, stating the reasons and providing detailed supporting evidence. Reasons such as the lack of the necessary construction qualifications to carry out the change project, the absence of appropriate construction equipment, or other factors. ③The supervisor reviews the proposal submitted by the construction contractor; once the change implementation plan submitted in accordance with the request outlined in the change order is found to be feasible and approved by the project owner, a change order is issued. If the construction contractor does not agree to the change, the supervisor shall, after consulting with the construction contractor and the project owner, decide whether to revoke, modify, or leave the original change proposal unchanged. ④The change proposal should clarify the basis for requesting the change, along with the necessary drawings and explanations. Upon receiving the written proposal from the construction contractor, the supervisor shall discuss it with the project owner; if a change is confirmed to be necessary, the supervisor shall issue instructions for the change within 14 days of receiving the written proposal from the construction contractor. If, after examination, it is not agreed to make such a change, the supervisor shall provide a written response to the construction contractor. 2. Project changes proposed by the construction contractor. Project changes proposed by the construction contractor may fall into two categories: suggested changes and requested changes. (1) Changes suggested by the construction contractor. The construction contractor shall submit in writing to the supervisor any reasonable suggestions regarding the drawings and technical requirements provided by the project owner, which could lead to a reduction in the contract price, a shortening of the construction period, or an improvement in the economic efficiency of the project. The content of the rationalization proposal should include a detailed description of the proposed work, a schedule and benefits, as well as coordination with other tasks, along with the necessary design documents. The supervisor consults with the project owner to decide whether to adopt the suggestions put forward by the construction contractor. If the recommendation is adopted and results in a change, the supervisor issues a change order to the construction contractor. The rational suggestions put forward by the construction contractor enable the project owner to achieve practical benefits such as reduced project costs, shortened construction timelines, and improved operational efficiency of the project, and they should be rewarded in accordance with the provisions set out in the special contract terms. (2) Changes requested by the construction contractor. Upon receiving the drawings and documents issued by the supervisor in accordance with the contract terms, the construction contractor may, if it finds that there are elements within the scope of changes, such as an increase in the quality standards of the work, additional tasks, or changes to the location or dimensions of the project, submit a written proposal for changes to the supervisor. The change proposal should clarify the basis for requesting the change, along with the necessary drawings and explanations. Upon receiving the written proposal from the construction contractor, the supervisor shall discuss it with the project owner; if a change is confirmed to be necessary, the supervisor shall issue instructions for the change within 14 days of receiving the contractor’s written proposal. If, after examination, it is not agreed to make such a change, the supervisor shall provide a written response to the construction contractor.