“Change Order” seems to be a favorite name for boats owned by construction (and restoration) contractors.

Change orders are modifications to a base construction contract, usually increasing the cost, and often extending the completion date. And they’re profitable for contractors. While the base contract is negotiated in a competitive environment, the selected contractor is the only “bidder” for change order work once the project is underway.

Drawings and specs (CDs) that are imprecise or ambiguous are rife with potential for contractor exploitation, especially if unit prices for potential change order work have not been negotiated in advance. Often, contractors will submit a very low bid, anticipating in advance (as they prepare the bid) the change orders they will be submitting, based on the CDs’ vulnerabilities.

In particular, CDs that rely on rudimentary drawings and copious verbiage are target-rich environments. We know this because we’ve reviewed projects where the consultants have followed this approach. In some cases, project costs doubled relative to the initial budget, and the schedule expanded by months.

Conversely, tight drawings minimize change orders. They represent solutions formulated by prudent investigation and analysis, and embrace the “five Cs” (clear, correct, concise, complete, and consistent).

By the way, please let us know if you ever see a boat named “Low Bid.”