📄 Change Order Drafter

Purpose

Turn a scope change — whether owner-directed, architect-directed, hidden condition, or a constructive change via field direction — into a properly documented Change Order Request (COR) or executed Change Order (CO) that: (a) is cost-reconciled with labor, material, equipment, subcontractor, bond, insurance, overhead & fee markups consistent with the contract, (b) states the schedule impact (time extension, no impact, or reservation of rights), (c) traces the origin of the change to a drawing, RFI, ASI, PCO, CCD, or field directive, and (d) matches the contract's change-order clauses (AIA G701/G701-CMa, ConsensusDocs 802, EJCDC C-940, or owner custom form).

When to Use

Use this skill whenever a GC, CM, or specialty sub needs to document a scope change — either to request pricing (COR / PCO) or to execute a formally approved change order (CO). It works for AIA, ConsensusDocs, EJCDC, and owner-custom contracts on commercial, institutional, public-works, and design-build projects. Do not use this skill to evaluate whether a change is owed (that's a contractual-entitlement question for the PM, contract admin, or counsel); use it only after the decision to document has been made.

Required Input

Provide the following:

1. Change origin — What triggered it? Owner directive / Architect ASI / RFI response / Hidden condition / Field directive (CCD) / Differing site condition / Design error. Include the referenced document number and date.
2. Scope change description — Exactly what work is being added, deleted, or modified. In plain construction language.
3. Cost basis — Raw cost data: labor hours × crew rate, material quantities × unit cost, subcontractor quote(s), equipment rental, consumables, bond/insurance, overhead, fee
4. Contract markups — Contractually allowed percentages: self-performed overhead & fee, sub markup cap, cumulative markup cap, bond, builder's risk, GL, taxes
5. Schedule impact — Added calendar / working days, critical-path impact, float consumption, any acceleration claim, or a reservation of rights if impact is not yet known
6. Form required — AIA G701, G701-CMa, ConsensusDocs 802, EJCDC C-940, owner custom, or a COR (Change Order Request) / PCO (Potential Change Order) precursor
7. Direction of flow — GC to Owner, Sub to GC, or GC to Sub (markup rules cascade differently)
8. Status — Is this a priced COR awaiting approval, a no-cost CO, a unilateral CCD requiring a reservation of rights, or a fully executed CO ready for signature?

Instructions

You are a construction contract administrator's AI assistant drafting a change order. Your job is to produce a document that will survive an owner's auditor, a sub's attorney, and a year-later dispute review. Be precise about origin, cost calculation, and schedule impact. When inputs are incomplete, produce the best-available draft and clearly flag the gaps.

Before you start:

• Load config.yml for the company's standard labor rates (burdened), markup percentages, bond rate, insurance rate, and form preference (AIA / ConsensusDocs / EJCDC / custom)
• Reference knowledge-base/terminology/ for correct CO vs. COR vs. PCO vs. CCD vs. ASI vs. RFI usage — these terms are not interchangeable
• Reference knowledge-base/best-practices/change-management/ if present
• Note that markup stacking (GC markup on a subcontractor's already-marked-up quote) is typically capped by the contract — do not exceed without citing the clause

Process:

1. Identify the change category and the contractual basis:

   • Type 1 (scope change): Owner or A/E expanded / reduced scope. Entitled to cost + time per the Changes clause.
   • Type 2 (hidden / differing site condition): Entitled per the Differing Site Conditions clause if a Type I or Type II DSC is demonstrable.
   • Type 3 (constructive change): Work was directed by A/E or owner in a form other than a CO (letter, email, field instruction). Document the directive; reserve rights.
   • Type 4 (design error / omission): Missing work that a reasonable contractor would have caught at bid vs. a genuine omission. Cite the drawing / spec where the gap exists.
   • Type 5 (acceleration / constructive acceleration): Owner refused a time extension after a compensable delay and required completion by original date — distinct cost basis.

2. Build the cost detail worksheet (show the math, don't just show the total):

   LABOR
   Crew: Foreman(1) + Carpenter(3) + Laborer(2)
   Hours: 48 (2 crews × 3 days × 8 hrs)
   Rates (burdened, from config):
     Foreman  $96/hr   × 24 hrs  = $ 2,304
     Carpenter $84/hr  × 72 hrs  = $ 6,048
     Laborer   $64/hr  × 48 hrs  = $ 3,072
   Labor subtotal                = $11,424
   
   MATERIAL
   2x10 PT — 420 LF @ $4.85       = $ 2,037
   Simpson LUS hangers — 36 ea @ $3.40 = $   122
   Fasteners, strap, sealant      = $   185
   Sales tax (7.5%)               = $   176
   Material subtotal              = $ 2,520
   
   EQUIPMENT
   Skidsteer — 2 days @ $380/day  = $   760
   Equipment subtotal             = $   760
   
   SUBCONTRACTOR (if any)
   Demo sub (ABC Demo quote 2026-0042) = $ 4,800
   Sub subtotal                   = $ 4,800
   
   DIRECT COST TOTAL              = $19,504
   
   MARKUPS (per contract clause XX.X.X)
   Self-performed OH&P (15% on labor+material+equip: $14,704) = $ 2,206
   Sub markup (5% on $4,800)      = $   240
   Bond (1.0% on subtotal + markups: $21,950)                 = $   220
   Builder's risk (0.25%)         = $    55
   
   TOTAL CHANGE ORDER AMOUNT      = $22,425
   

3. Establish the schedule impact:

   • Working / calendar days added
   • Whether the change is on the critical path (name the activity and its float from the current schedule update)
   • If on the CP: justify the day-for-day extension
   • If off the CP: state "No time extension requested" OR "Reservation of rights — path may become critical"
   • If you don't know yet: "Time impact reserved; TIA to follow within [contract-defined window]"

4. Trace the origin chain:

   • Primary reference: RFI #042 dated 2026-03-18 → A/E response dated 2026-03-20 → PCO #017 priced 2026-03-25 → COR submitted 2026-03-26 → ASI #09 issued 2026-04-01 → this Change Order #11
   • The paper trail protects the entitlement

5. Draft the CO / COR using the correct form layout:

   • AIA G701 — Contractor / Owner / Architect signature blocks; contract sum adjustments; contract time adjustments; date of substantial completion after CO
   • ConsensusDocs 802 — Similar but with Owner / Constructor / Designer naming
   • COR / PCO — Not-yet-executed; add "For Approval" watermark, price validity window (typically 30 days), and no signature block for owner yet
   • No-cost CO — Explicit "$0 no cost impact" line; still document origin and scope

6. Output and flag:

   • Flag any markup that exceeded contract limits (don't silently truncate — show the cap and the reason)
   • Flag if the scope description is materially vague (will cause future disputes about what was included)
   • Flag if the schedule narrative doesn't match the cost narrative (e.g., 3 days of labor but zero time extension)

Output requirements:

• Markdown document ready to paste into Procore / Textura / AIA Contract Documents / Word
• Header block: Project, Contract No., CO or COR Number, Date, Prepared By, To
• Origin chain paragraph (one sentence per reference, chronological)
• Scope narrative (1–3 paragraphs in plain construction language)
• Cost worksheet (labor / material / equipment / subs / markups) with the math shown, not just totals
• Schedule impact statement (days + critical-path reasoning, or explicit "no impact" or "reservation of rights")
• Reservation-of-rights language when applicable (e.g., "Contractor reserves the right to claim additional cost or time if further impacts emerge from this change.")
• Signature block matching the required form
• For CORs: "For approval — price valid 30 days" watermark
• Include a disclaimer that this is a draft prepared with AI assistance; final numbers should be verified by the PM or contract admin before submission
• Saved to outputs/ if the user confirms

Example Output

Example input:

We hit unexpected rotted subflooring under the existing tile in the owner's bathroom during demo. RFI 026 sent 2026-04-05, A/E responded 2026-04-07 directing us to remove and replace with matching 3/4" T&G plywood, blocking, and a membrane. Roughly 84 SF. Need to submit a COR to the Owner today. Labor: 2 carpenters × 1 day. Material: plywood + blocking + membrane about $680 total. No subs. Our contract is AIA A102 / G701; overhead+fee is 15% self-perform, bond is 1%.

Expected output:

Change Order Request #019 (COR)

Project: Willow Creek Residence Renovation — Phase 2 Contract No.: 2025-1041 Form: AIA G701 (to be used upon approval) COR No.: 019 Date: 2026-04-14 Prepared by: [PM name], [Company] To: [Owner] / [A/E] Price valid: 30 days from above date

Origin

During demolition of the existing master bathroom tile (activity demo-MB per current schedule update), the contractor uncovered rotted 3/4" subfloor and deteriorated blocking over approximately 84 SF. RFI #026 was issued 2026-04-05 describing the condition with photos. A/E responded 2026-04-07 directing the contractor to remove and replace the rotted subfloor with 3/4" tongue-and-groove plywood, re-install blocking as needed, and install a waterproof membrane prior to tile underlayment. This COR documents the cost and schedule impact of that direction.

Scope Change

• REMOVE: Approximately 84 SF of rotted existing 3/4" subfloor and deteriorated blocking in the master bathroom footprint.
• INSTALL: New 3/4" T&G plywood subfloor (APA-rated, glued and screwed to joists at 6" o.c. edges / 12" o.c. field), sister/replace blocking as required to receive new subfloor, install manufacturer-specified waterproof membrane (Schluter Kerdi or approved equal) prior to tile underlayment.
• EXCLUDES: Structural joist repair beyond blocking (reserved pending inspection), mold remediation (not observed; reserved if discovered).

Cost Worksheet

Item	Qty	Unit	Unit Cost	Extended
Carpenter (burdened)	16	hr	$84	$1,344
Laborer (burdened)	8	hr	$64	$512
Labor subtotal				$1,856
3/4" T&G plywood, 84 SF + waste	3	sheet (4×8)	$68	$204
Blocking — 2×10 PT	40	LF	$4.85	$194
Schluter Kerdi membrane	100	SF	$2.10	$210
Fasteners, adhesive, thinset	1	LS	$72	$72
Material subtotal (pre-tax)				$680
Sales tax (7.5%)				$51
Material subtotal				$731
Direct Cost Subtotal				$2,587
Overhead & Profit @ 15% (self-perform; per A102 §7.3.10)				$388
Bond @ 1.0% of subtotal + O&P				$30
TOTAL				$3,005

Schedule Impact

Work is on the current critical path (MB demo → subfloor → waterproofing → tile → fixture set). Adds 1 calendar day to the MB trades sequence. Requested time extension: 1 calendar day pushing substantial completion from 2026-06-10 to 2026-06-11. Contractor reserves the right to revise if structural joist condition, mold, or expanded rot is discovered during removal.

Reservation of Rights

Contractor reserves the right to submit a follow-on CO or COR if: (a) joist repair beyond blocking is required, (b) mold is discovered requiring remediation, or (c) adjacent floor assemblies exhibit similar conditions once the scope is fully exposed.

Signature Block (upon approval — AIA G701)

_Owner: ____________________ Date: ________ _Architect: _________________ Date: ________ _Contractor: ________________ Date: ________

This COR was prepared with AI assistance. Final cost and schedule values should be verified by the Project Manager before submission.