The Construction Change Order Percentage Calculator determines the proportion of additional costs incurred due to change orders relative to the original project contract amount. It provides a clear picture of how much the project cost deviated from the initial plan, helping contractors, project managers, and clients assess project management effectiveness and identify areas for improvement.
Formula
Step 1: Define the Formula
The formula for calculating the Construction Change Order Percentage is:
Change Order Percentage = (Total Change Order Amount / Original Contract Amount) × 100
Where:
- Total Change Order Amount is the total cost of all approved change orders.
- Original Contract Amount is the agreed-upon cost of the project before any change orders.
Step 2: Calculate the Total Change Order Amount
Add the costs of all approved change orders during the project:
Total Change Order Amount = Sum of All Change Orders
Step 3: Substitute the Values into the Formula
Divide the total change order amount by the original contract amount and multiply by 100 to express it as a percentage:
Change Order Percentage = (Total Change Order Amount / Original Contract Amount) × 100
Step 4: Interpret the Result
- A higher percentage indicates significant deviations from the original contract, which may be due to unforeseen circumstances, design errors, or changes in project scope.
- A lower percentage suggests minimal changes, indicating better initial planning and adherence to the project scope.
Table of Common Calculations
| Original Contract Amount | Total Change Order Amount | Change Order Percentage |
|---|---|---|
| $100,000 | $5,000 | 5% |
| $250,000 | $25,000 | 10% |
| $500,000 | $50,000 | 10% |
| $1,000,000 | $100,000 | 10% |
Example
Problem
A construction project had an original contract amount of $200,000. During the project, three change orders were approved with costs of $5,000, $3,000, and $7,000. Calculate the Construction Change Order Percentage.
Solution
- Calculate the Total Change Order Amount:
Total Change Order Amount = $5,000 + $3,000 + $7,000 = $15,000 - Substitute the values into the formula:
Change Order Percentage = (Total Change Order Amount / Original Contract Amount) × 100
Change Order Percentage = ($15,000 / $200,000) × 100 - Calculate the percentage:
Change Order Percentage = 0.075 × 100 = 7.5%
Result
The Construction Change Order Percentage for the project is 7.5%.
Most Common FAQs
This calculator helps measure the impact of change orders on the total project cost, providing insights into project management and cost control.
A high percentage can indicate poor initial planning, design errors, or unforeseen site conditions, potentially leading to budget overruns and delays.
While it varies by project type, percentages between 5% and 10% are generally acceptable. Higher values may warrant a review of project planning and scope definition processes.