Track Changes, Allowances, and Change Orders

A. Finished-Project Specification

Deliverable: one integrated change and allowance control system, containing a numbered change log with defined statuses, documented change events with existing-condition records, traceable pricing separated into price and time effects, written authorization records, updated project documents following approval, an allowance log reconciled to owner selections, and a closure record for every change event carried through to signature, billing, and archive.

B. Change and Allowance Record Schedule

Record	Content	Source	Purpose
Change log	Change number, source, date, description, status, price, time effect, approval, billing status	Field observation, RFI log, owner requests	Central register of every change event from identification to closure
Existing-condition record	Photographs, measurements, date, location, affected work	Field inspection at first notice	Documents the condition before changed work begins
Change-order proposal	Scope description, assumptions, exclusions, price detail, time effect, validity period	Quotations, labor and material calculations, schedule analysis	Routes the priced change through authorized review
Allowance log	Category, original amount, selection, committed cost, forecast, tax, markup, balance	Estimate, owner selections, purchase orders	Tracks allowance status separately from scope changes
Document update record	Revised scope, drawings, schedule, budget, purchase orders, subcontracts, field instructions	Approved change order	Confirms every affected document reflects the approved change
Reconciliation record	Pending, approved, billed, paid, and closed amounts by change number	Change log, job-cost report, billing records	Confirms the change log and cost report agree at any point in time

C. Information and Document Takeoff

• Source records: the executed agreement, approved scope baseline, WBS and cost codes, baseline schedule, allowance schedule, and RFI log, sufficient to identify entitlement and pricing for every change event without inventing missing contract terms.
• Pricing support: subcontractor and supplier quotations, verified labor rates and production data, equipment rates, and the company's approved overhead, tax, and markup policy.
• Approval record: written confirmation of the person or role authorized to approve price, time, and scope changes, obtained before the change log is opened.
• Revision control: a change-numbering convention sufficient to distinguish every change event and prevent duplicate pricing across RFIs, owner requests, and allowance reconciliations.

D. Acceptance Standards

Check	Standard
Change log	Every event numbered, dated, sourced, and carried to a defined status through closure
Existing conditions	Photographed or measured before changed work begins for every event
Entitlement	Confirmed against the scope baseline before price is discussed or promised
Pricing	Labor, material, equipment, supervision, tax, and markup traceable to source documents; price and time effects stated separately
Authorization	Written approval obtained before changed work proceeds, except under a documented directive procedure
Document updates	Scope, drawings, schedule, budget, purchase orders, and field instructions revised after approval
Allowance log	Original amount, selection, committed cost, forecast, tax, markup, and balance current for every category
Reconciliation	Pending, approved, billed, paid, and closed amounts reconcile between the change log and job-cost report

E. Preparation — Establish the Change Log and Statuses

1. Create a change-event numbering system and central change log. Assign a unique number to every change event before any other action is taken on it.
2. Define change statuses such as identified, under review, pricing, submitted, approved, rejected, withdrawn, proceeding under directive, billed, and closed. Use these statuses consistently for every entry.
3. Identify change sources including owner request, design revision, hidden condition, code correction, utility requirement, substitution, allowance selection, field conflict, delay, and scope transfer. Record the source category for each event.
4. Record the date, originator, location, description, document reference, and affected work at first notice. Complete this entry before further action on the event.
5. Photograph or measure the existing condition before changed work begins. Attach the record to the change-log entry.

F. Confirm Entitlement and Issue Notice

6. Confirm whether the event is within original scope, excluded, allowance, alternate, unit-price, or potential change. Compare the event against the approved scope baseline from Project 01.
7. Do not promise entitlement or price before contract and scope review. Keep discussion factual until the review is complete.
8. Issue required notice within contractual time limits. Confirm the notice method and deadline in the executed agreement before issuing it.
9. Identify whether work must stop, continue unchanged, be protected, or proceed under written directive. Record the determination and communicate it to affected trades.
10. Document owner requests in writing and confirm that discussion is not authorization. Record the request exactly as stated by the owner.
11. Define the changed scope and the unchanged baseline scope. State clearly what is being added, deleted, or modified.
12. Identify demolition, protection, redesign, permit, inspection, procurement, rework, and closeout effects. Record every secondary effect the change creates.

G. Price the Change and Prepare the Proposal

13. Obtain subcontractor and supplier quotations with scope, quantity, labor, material, equipment, exclusions, validity, and schedule. Confirm each quotation matches the defined changed scope.
14. Calculate self-performed labor, material, equipment, supervision, cleanup, disposal, tax, and markup using approved methods. Use the company's approved pricing policy; do not invent markup rates.
15. Identify credits, restocking, cancellation, return, salvage, and deleted work. Record any reductions to price alongside additions.
16. Calculate direct schedule effect and secondary effects on sequence, access, weather, overhead, and other trades. State the effect in calendar days or a defined unit.
17. Identify delay, acceleration, remobilization, overtime, standby, or extended general-condition effects. Record each effect as a separate line item where it applies.
18. State price effect and time effect separately. Do not combine them into a single narrative figure.
19. Prepare the change proposal with assumptions, exclusions, validity, and supporting detail. Attach the quotations and calculations supporting the proposal.

H. Authorize, Implement, and Update Project Documents

20. Route the proposal through authorized review and approval. Submit it to the person or role confirmed in the Prerequisites.
21. Record approval, rejection, modification, or pending status. Update the change log immediately after the determination is received.
22. Do not direct changed work without the required authorization except under documented emergency or directive procedures. Confirm the directive procedure exactly matches the executed agreement before relying on it.
23. Issue revised scope, drawings, schedule, budget, purchase orders, subcontracts, and field instructions after approval. Update every document affected by the change.
24. Update contract value, committed cost, forecast, billing, schedule, WBS, procurement, inspections, and closeout requirements. Confirm each linked system reflects the approved change.

I. Operate the Allowance Log

25. Create an allowance log with original allowance, approved selection, committed cost, forecast, tax, markup, and balance. Establish one entry per allowance category from the estimate.
26. Track allowance-decision dates and warn when delayed selections affect schedule or price. Compare selection deadlines against the schedule and procurement dates.
27. Distinguish allowance overrun, scope change, upgrade, and quantity change. Record the correct category for each variance from the original allowance.
28. Track pending changes in forecast cost even before approval according to company policy. Do not treat unapproved but likely exposure as zero cost.
29. Prevent duplicate pricing across RFIs, owner requests, subcontractor changes, and allowance reconciliations. Check the change log before pricing an item that may already be captured elsewhere.

J. Verify, Bill, and Close the Change Record

30. Link invoices and subcontractor change orders to the approved change identifier. Confirm the change number appears on the invoice or billing record.
31. Verify completed changed work and required inspections. Confirm the work matches the approved change scope before billing.
32. Capture revised as-built notes, warranties, manuals, and closeout information. Update closeout records affected by the change.
33. Reconcile pending, approved, billed, paid, and closed change amounts. Confirm the change log and job-cost report agree.
34. Obtain final signature or closure evidence. Record the closure date and responsible party on the change log.
35. Archive the complete change record and update lessons learned. Preserve the full record, including rejected and withdrawn events, in the project archive.