Price it like a small estimate: labor at your burdened rate, material at current prices, equipment and subcontracts, then the overhead and profit your contract allows. Add the time it costs you: schedule extensions, lost productivity and extra supervision. Get written direction before you do the work, and send your notice and price within the deadlines in the subcontract.
What's added, what's deleted, and what's different, with the drawing, bulletin or directive that caused it. Price both the adds and the deducts.
2
Price the direct cost
Labor hours at your burdened rate, material at today's prices, equipment rental and any subcontracts. Use the unit prices from your bid if the contract says they apply.
3
Add the markup the contract allows
Many contracts cap overhead and profit on changes, sometimes differently for your own work and for subcontracted work. Read the clause before you apply your usual markup.
4
Price the time
Extra supervision, extended general conditions, re-sequencing, and productivity lost to working out of order. These are real costs and are easy to forget.
5
Document and send on time
Keep time and material records daily if the work proceeds before the price is agreed. Send the notice and the price within the subcontract's deadlines.
Questions estimators ask
Should I start the work before the change order is signed?
Only with written direction from the GC, and only if your subcontract allows it. Without it, you risk doing work you can't get paid for.
What if the GC disputes my price?
Show the breakdown: hours, rates, material quotes and markup. Detailed backup, kept from the day the change started, is what settles most disputes.
Does Bidprobe price change orders?
No. Bidprobe is built for the bid. But the unit prices, exclusions and clarifications in your proposal are what a change order is measured against, so a clear bid makes every later change easier to price.
A clear bid makes changes easier to price.
One free bid check on every new account, no card required. Most checks come back in 5 to 15 minutes.