How do you manage changes during contract execution?

1 Define the change process

The first step to manage changes is to define the change process in the contract. This should include the roles and responsibilities of the parties involved, the procedures and forms for submitting and approving change requests, the criteria and methods for evaluating and pricing changes, and the mechanisms for documenting and communicating changes. Having a clear and agreed-upon change process can help avoid disputes, delays, and misunderstandings.

2 Evaluate the impact of changes

The second step to manage changes is to evaluate the impact of changes on the project objectives and constraints. This involves analyzing the technical, financial, schedule, and quality implications of the proposed changes, as well as their risks and opportunities. You should use tools such as change logs, cost estimates, schedule updates, risk registers, and quality plans to track and assess the effects of changes. You should also consult with the project team, stakeholders, and experts to get their input and feedback.

3 Negotiate and approve changes

The third step to manage changes is to negotiate and approve changes with the other party. This requires a collaborative and transparent approach, where both sides present their rationale, expectations, and alternatives for the changes. You should use tools such as change orders, contract amendments, and letters of agreement to formalize and authorize the changes. You should also ensure that the changes are consistent with the contract terms and conditions, and that they comply with the relevant laws and regulations.

4 Implement and monitor changes

The fourth step to manage changes is to implement and monitor changes according to the approved plan. This involves coordinating and communicating with the project team, subcontractors, suppliers, and stakeholders to execute the changes as agreed. You should use tools such as work breakdown structures, schedules, budgets, quality control plans, and performance reports to measure and report the progress and performance of the changes. You should also identify and resolve any issues or deviations that arise during the implementation.

5 Review and learn from changes

The fifth step to manage changes is to review and learn from changes at the end of the project or at key milestones. This involves collecting and analyzing the data and feedback on the changes, comparing them with the original plan and objectives, and identifying the lessons learned and best practices for future projects. You should use tools such as change audits, surveys, interviews, and post-mortems to evaluate and document the results and outcomes of the changes. You should also share and celebrate the successes and improvements achieved by the changes.

6 Manage changes effectively

Managing changes during contract execution can be challenging, but it can also be rewarding if you follow a systematic and proactive process. By defining, evaluating, negotiating, implementing, and reviewing changes, you can ensure that they are beneficial for both parties, and that they support the project goals and requirements. You can also use various tools and techniques to facilitate and streamline the change management process, and to learn from your experience.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?