Change Order

Incorrect. That is the contract itself, not a change order.

Correct! A Change Order is a formal document that amends the original contract.

Incorrect. Change Orders are formal and documented.

Incorrect. Insurance policies are separate from Change Orders.

Incorrect. Unilateral Change Orders are a common type.

Incorrect. Bilateral Change Orders are a common type.

Incorrect. Constructive Change Orders are a common type.

Correct! There is no such thing as a Trilateral Change Order.

Incorrect. While Change Orders can help prevent disputes, their main purpose is to formalize and document changes.

Incorrect. Change Orders don't guarantee on-time and on-budget completion, but they help manage changes that can impact those factors.

Correct! Change Orders serve to formally record and agree on changes to the project.

Incorrect. Risk assessments are separate from Change Orders.

Incorrect. This is a crucial component of a Change Order.

Incorrect. This is a crucial component of a Change Order.

Incorrect. This is a crucial component of a Change Order.

Correct! While signatures from the owner/operator and contractor are necessary, not all stakeholders necessarily need to sign.

Incorrect. While software can be helpful, the most important aspect is communication and collaboration.

Correct! Proactive monitoring and evaluation are crucial for effective Change Order management.

Incorrect. While consultants can be helpful, effective management relies on internal collaboration.

Incorrect. While communication is important, proactive monitoring and evaluation are more critical.

**1. Identify the Potential Impact:**

• **Schedule:** Potential delay due to the need for new drilling equipment and revised drilling plan.
• **Budget:** Increased costs due to additional equipment, specialized labor, and potential time overruns.
• **Scope of Work:** Modification of drilling techniques to account for the geological formation.

2. Draft a Change Order Request:

Change Order Request Project: [Project Name] Date: [Date] Subject: Change in Drilling Techniques Due to Geological Formation

Description of Change: During the drilling operation, an unexpected geological formation was encountered at [depth]. This formation requires a change in drilling techniques to ensure successful completion of the well.

Impact on Schedule: This change is expected to delay the project by [estimated number] days. Impact on Budget: The change will incur additional costs of [estimated amount] due to [list reasons, e.g., specialized equipment rental, labor, materials]. Revised Scope of Work: The drilling plan will be modified to incorporate [briefly describe the new drilling technique].

Solution: We propose the following:

• [List specific steps to address the change, e.g., secure necessary equipment, adjust project schedule, allocate additional budget].

Agreement: We request the owner/operator to approve this Change Order.

Signatures: * Project Manager: [Your Name] * Owner/Operator Representative: [Name] * Contractor Representative: [Name]

3. Prepare a Presentation: * The presentation should clearly explain the unexpected geological formation and its impact. * Present the proposed solution, including the revised schedule, budget, and scope of work. * Emphasize the need for the Change Order to ensure project success. * Address any questions or concerns from stakeholders.