Introduction:
Regardless of the project’s size, changes are inevitable in construction, and renewable energy projects are no exception. Effective change control methodologies are essential to keeping projects on track, maintaining timelines, budgets, and quality. The best way to achieve this is by implementing best practices that help project managers smoothly navigate these adjustments and minimize disputes
Here are some of the best practices which I will talk about, note that this is not an exhaustive list, but they will cover a vast variety of issues when it comes to controlling changes and mitigating claims.
1. Documentation: Documenting every event with dates and evidence helps project and contract managers avoid sifting through vast amounts of information, such as emails, submittal records, and other essential communications. This also keeps the project manager at an upper hand with contractors or other stakeholders. From day one, a claims folder should be set up in the project database, accessible to all team members for timely collaboration, weekly / fortnightly project team meetings should also cover discussion about claims.
2. Predefined Change Order Procedures: Every contract should define a detailed procedure for handling changes. This includes mechanisms for change notices, response to the notices, submission of claims and required documents in support of the notices, contracts in Australia and many other markets have time barring defined for each of these discussed therefore should be at the tips of the project manager on both client as well as contractor’s side.
3. Cost & Schedule Impact Analysis: Conducting a thorough analysis of the potential costs and schedule impacts of proposed changes helps making an informed decision and avoiding a cost overruns and delays. Although there are contingencies in the project budget and schedule but in ideal case a situation to utilise those should always be avoided.
4. Risk Management: Risk management is often underutilized on projects, with many treating it as a box-ticking exercise. Early identification of potential risks that could lead to change orders by having effective mitigation measures, not only this but a regular monitoring of the progress is also required.
5. Stakeholder Engagement: Keeping client involved throughout the project to ensure their requirements and expectations are consistently met. Further, engaging with subcontractors regularly to anticipate and address any issues which may necessitate any change orders. Weekly or bi-weekly progress meetings with subcontractors and clients, where discussions are recorded and distributed, help ensure continuous stakeholder engagement.
Conclusion: Effectively managing change orders in renewable energy projects demands a proactive approach, detailed documentation, strong communication, and the use of advanced technology. By following best practices, project managers can minimize disruptions, control costs, and ensure the successful completion of renewable energy projects.
Recommended Reading:
1. AACEI Recommended Practice 86R-14 – Variance Analysis and Reporting
2. AACEI Recommended Practice 100R-19 – Contract Change Management as Applied in EPC, TCM Framework: 10.3 – Change Management
3. AACEI Recommended Practice 72R-12 – Developing a Project Risk Management Plan
Wasif A Khan 