Sample Change Order Claim Letter

 

This is a sample letter, I recently sent on behalf of a client. He was able to receive his billing from a difficult client.


 


To whom it may concern:


 


My name is Matt Stevens, President of Stevens Construction Institute. I am a management consultant who only works with construction contractors. I have been doing so since 1994. My credentials are available at stevensci.com and contractorsblog.com. I have a published book with McGraw – Hill, New York, N.Y.


 


I have been asked to review billing rates for a project undertaken by XXXX Construction of XXX,XX. As a matter of subjectivity, I am using the R.S. Means Cost Data Guide. It is a compilation of costs from over 3000 data sources (companies, estimators etc.) It is considered well reasoned and reflective of costs in the construction industry. I have faxed over the actual pages from that source. It is available for your inspection from R.S. Means Company. Google on the same to order. This information has been used in many mediations and resolutions for construction related disagreements.


 


Let me direct you to the following information.


 


Page 598 –    Standard Rate for a Carpenter                                          $49.30


                        Standard Rate for a Carpenter Foreman                         $52.50


 


Page 7 –         Add for shortage of Labor                                                   10%


 


Page 8 –         Add for Worker’s Compensation / Employer’s Liability   18.57%


 


Page 622 –     Add for XXXX, XX Pay Differential                                   10%


This is a conservative average on my part of the


surrounding cities


 


General Note: these are bare costs                     


 


It is my opinion, given these public numbers and adding my contracting expertise, the rates charged on an hourly basis are below the market price and are a gain to the building client. In legal terms, they are reasonable.


 


Sincerely,


 


Matthew S. Stevens


President