FreeConstruction · Project controls

Change order pricing (OH&P)

Price a change order from direct costs with overhead, profit, sub markup, tax and bond.

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Your numbers

Labor (burdened) ($)Your own forces' labor cost.Material ($)Material cost before tax.Equipment ($)Owned or rented equipment cost.Subcontractor cost ($)Subcontractor quotes (they include their own markup).Sales tax on material (%)Local rate.Overhead on own work (%)Contracts often cap at 10–15%.Profit on own work (%)Often 5–10%.Markup on subcontract (%)Often capped at 5–10% combined OH&P.Bond and insurance (%)Applied to the subtotal.

For the change order proposal7 more, filled with typical values

Contract cap on own-work overhead and profit (% combined)The most the changes clause allows on your own work. Many contracts cap it at 10 to 15%.Contract cap on subcontract markup (%)The most you may add on a subcontractor's price.How the contract applies overhead and profitRead the changes clause. Compounding adds profit on the overhead too.Time extension asked for (days)Days the change adds to the critical path. 0 if it adds none.Time-related cost ($ per day)Site supervision, trailer, equipment standing by and temporary services for each added day.Days since the directive or discovery (days)From the written order, the field directive or the day you found the condition.Contract notice deadline (days)From your contract's changes or claims clause. FAR 52.243-4 allows 30 days after a written change order [1].

Change order pricing (OH&P)Forge by Norventus

How it works

Press Calculate to price the change order.

Overhead, profit and subcontract markupCost ledgers, bond, press and scaleScale: zero at the cost line, the arm reads markup on costPress Calculate and the press stacks one ledger per line of your change order, each as thick as its dollars, and the platen's arm reads the effective markup on cost. Your numbers appear here.

Result

Ready when you are.Enter your numbers and press Calculate.

References

Check the work against these

A line-by-line change order proposal with markups checked against the contract caps, the time-related cost, the notice deadline and the backup to attach, with sources. Numbers in the result and in the plain-words read point here.

1
FAR 52.243-4, ChangesCode
Acquisition.gov (Federal Acquisition Regulation)
The model changes clause: an equitable adjustment for changes in cost or time, the contractor's written notice of a constructive change, no recovery for costs more than 20 days before that notice, and 30 days after a written change order to assert the right to an adjustment.
2
FAR 52.236-2, Differing Site ConditionsCode
Acquisition.gov (Federal Acquisition Regulation)
When the change comes from hidden ground or site conditions: give prompt written notice before the conditions are disturbed, or the adjustment can be refused.
3
FAR 31.105, Construction and architect-engineer contracts (cost principles)Code
Acquisition.gov (Federal Acquisition Regulation)
How equipment ownership and operating costs are priced on construction work, including the owner's right to use a schedule of predetermined equipment rates. Price the equipment line the way your contract allows.
4
FAR 15.404-4, ProfitCode
Acquisition.gov (Federal Acquisition Regulation)
The factors a government owner weighs when it negotiates profit on a priced change: the contractor's effort, cost risk and the work's difficulty. Useful when you defend the profit rate.

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Pro sheetPremiumLabor productivity and crew sizeLabor hours, duration and crew size for a quantity of work from a unit productivity rate.In the role plan · see an example →Pro sheetPremiumPay application and retainageCurrent payment due, retainage held and balance to finish, in the AIA G702 layout.In the role plan · see an example →

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Change order pricing (OH&P)

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