Case Study: San Francisco Bay Bridge Eastern Span Replacement – Change Order Disputes (2008)
Project Overview
• Name: San Francisco Bay Bridge Eastern Span Replacement
• Location: San Francisco, California
• Year: 2008
• Project Size: $6.4 billion
• Scope: Replacement of the eastern span of the San Francisco–Oakland Bay Bridge
• Lead Agencies/Contractors: California Department of Transportation (Caltrans), Multiple Contractors
Category of the Issue, Problem, or Challenge
• Contract Change Order
• Claims and Disputes
Summary of the Issue, Problem, or Challenge
Extensive change orders related to design revisions, unforeseen site conditions, and compliance requirements led to prolonged disputes between the owner and contractors, delaying project completion and escalating costs.
Root Cause Analysis
- Complex design requiring multiple revisions.
- Incomplete early site and environmental investigations.
- Ambiguous contract terms on scope and change management.
- Ineffective dispute resolution mechanisms.
Impacts Due to the Issue, Problem, or Challenge
• Delays of over 18 months.
• Cost overruns exceeding $1 billion.
• Protracted claims and litigation.
Corrective Actions Taken
- Enhanced contract language to clarify change order procedures.
- Instituted mediation and arbitration clauses for dispute resolution.
- Increased upfront investigations and risk assessments in future projects.
- Improved collaboration between design and construction teams.
Lessons Learned
- Detailed early investigations reduce change order volume.
- Clear and enforceable change order processes prevent disputes.
- Effective dispute resolution clauses save time and costs.
- Collaborative approaches improve project outcomes.
Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation
- Are early site and risk assessments thorough?
- Are change order procedures clear and enforceable?
- Are dispute resolution mechanisms well-defined and practical?
- Is there proactive collaboration between design and construction?