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TABLE OF CONTENTS

1. Introduction
2. Scope
3. Procedure
- 3.1 Identification of Change
- 3.2 Submission and Logging
- 3.3 Initial Review and Classification
- 3.4 Impact Analysis
- 3.5 Review and Approval
- 3.6 Implementation

- 3.7 Documentation and Reporting

4. Authorization
5. Cost of Trend Preparation
6. Cost Effects
7. Schedule Effects
8. Trend Meetings
9. Contract Amendments
10. Final Settlement
11. Document Update
12. Roles and Responsibilities
13. Tools and Techniques
14. Communication Plan
15. Monitoring and Continuous Improvement

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1. INTRODUCTION

Effective change management is crucial in EPC (Engineering, Procurement, and

Construction) projects to ensure that any modifications to the project scope,

schedule, or cost are systematically managed and controlled. This document

outlines the procedures for identifying, evaluating, approving, and

implementing contract changes in an EPC project.

2. SCOPE

This procedure applies to all contract changes in the EPC project, including

changes initiated by the client, contractor, or any other stakeholder. It covers

changes affecting the project scope, schedule, cost, and quality.

3. PROCEDURE

3.1. IDENTIFICATION OF CHANGE

• Any stakeholder can identify a potential change to the project.

• The change can arise from various sources, such as design

modifications, scope adjustments, regulatory requirements, unforeseen

conditions, or client requests.

• The initiating stakeholder completes a Change Request Form, detailing

the nature and justification of the change.

3.2. SUBMISSION AND LOGGING

• The Change Request Form is submitted to the Project Manager or

Change Control Coordinator.

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• The request is logged into the Change Management System (CMS) for

tracking and record-keeping.

3.3. INITIAL REVIEW AND CLASSIFICATION

• The Project Manager or Change Control Coordinator performs an initial

review to determine the validity and potential impact of the change.

• Changes are classified based on their impact (e.g., minor, moderate, or

major).

3.4. IMPACT ANALYSIS

• An impact analysis is conducted to assess the implications of the

change on project scope, schedule, cost, and quality.

• The analysis includes input from relevant departments (e.g.,

engineering, procurement, construction, finance).

3.5. REVIEW AND APPROVAL

• The Change Request, along with the impact analysis, is presented to the

Change Control Board (CCB).

• The CCB reviews the request and makes a decision to approve, reject, or

request further information.

• If approved, a Change Order is issued. If rejected, the requestor is

informed of the reasons.

3.6. IMPLEMENTATION

• The approved Change Order is communicated to all relevant

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stakeholders.

• The Project Manager oversees the implementation of the change,

ensuring that all adjustments are documented and integrated into the

project plans.

• Changes are reflected in updated project schedules, budgets, and scope

documents.

3.7. DOCUMENTATION AND REPORTING

• All changes, including documentation and approvals, are maintained in

the Change Management System.

• Regular reports on change status and impact are generated and shared

with stakeholders.

4. AUTHORIZATION

• The Change Control Board (CCB) is authorized to review and

approve/reject change requests.

• The Project Manager ensures that all necessary approvals are obtained

before implementing any changes.

5. COST OF TREND PREPARATION

• Costs associated with preparing and analyzing trends are tracked

separately to ensure transparency.

• These costs include efforts for impact analysis, documentation, and

review meetings.
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6. COST EFFECTS

• All changes are assessed for their cost implications.

• Detailed cost estimates are prepared for each change, and the impact

on the overall project budget is evaluated.

7. SCHEDULE EFFECTS

• Changes are evaluated for their impact on the project schedule.

• Adjustments to the project timeline are documented and

communicated to all stakeholders.

8. TREND MEETINGS

• Regular trend meetings are held to review pending and approved

changes.

• These meetings ensure that all stakeholders are informed of the status

and impact of changes.

9. CONTRACT AMENDMENTS

• Approved changes result in formal amendments to the contract.

• Contract amendments are documented and signed by authorized

representatives from all parties.

10. FINAL SETTLEMENT

• Upon project completion, a final settlement of all changes is conducted.

• This includes reconciling any outstanding cost and schedule impacts.

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11. Document Update

• All project documents, including schedules, budgets, and contracts, are

updated to reflect approved changes.

• Document updates are maintained in the Change Management System

for reference and audit purposes.

12. ROLES AND RESPONSIBILITIES

• Project Manager: Oversees the change management process, performs

initial reviews, and ensures implementation.

• Change Control Coordinator: Manages the Change Management

System, tracks changes, and assists in documentation.

• Change Control Board (CCB): Reviews and approves/rejects change

requests.

• Stakeholders: Identify potential changes and provide necessary

information for impact analysis.

13. TOOLS AND TECHNIQUES

• Change Management System (CMS): A software tool for logging,

tracking, and reporting changes.

• Impact Analysis Templates: Standard templates for conducting impact

assessments.

• Change Request Form: A standardized form for submitting change

requests.
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14. COMMUNICATION PLAN

• Regular meetings of the Change Control Board to review pending

change requests.

• Updates on change status provided in project status meetings.

• Clear and documented communication of approved changes to all

stakeholders.

15. Monitoring and Continuous Improvement

• Regular audits of the change management process to identify areas for

improvement.

• Lessons learned from change management activities are documented

and incorporated into future projects.

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