Right-Sizing Labor Costs for Minor Partition Changes

Overview - Evaluating Impact Before Work Begins

On a multi-family residential development, a bulletin was issued that made slight adjustments to partition layouts in typical units. These changes involved minor shifts, adds and deducts of less than 6 inches per location, and were issued before layout had begun, well ahead of any framing or drywall work.

The Problem: Overstated Labor Impact

The subcontractor submitted a change order valuing the bulletin at $80,000. Their approach was to quantify each change location and assign one hour each for framing, hanging, and finishing, regardless of the actual impact. While this may have been done for simplicity, it significantly overstated the labor required. In reality, the changes had minimal material and labor implications. For example, a common revision involved extending a kitchen wall from 9 feet to 9 feet 6 inches, an increase that did not meaningfully alter the number of framing members or drywall sheets used when directed prior to work being put in place.

Our Solution: Applying Realistic Labor Productivity

We reviewed the bulletin and performed a detailed quantity takeoff. Rather than applying a flat labor rate per location, we evaluated the actual material changes and applied standard labor productivity rates to the added scope. This approach accounted for the slight increase in material while recognizing that the handling, cutting, and installation processes remained largely unchanged. In many cases, the changes even reduced waste, such as more efficient use of track and drywall sheets.

The Result: A More Accurate and Defensible Cost

By aligning the labor estimate with the true scope of work, we reduced the change order value from $80,000 to $20,000. This adjustment ensured the owner paid only for the actual impact of the changes, not for inflated assumptions.

Key Takeaway: Simplicity Should Not Override Accuracy

Even small design changes can lead to large cost discrepancies if labor is applied uniformly without regard to actual impact. Early review and realistic productivity assumptions are key to ensuring fair and accurate change order pricing.