 |
A change order is an addition or deletion of work outside of the contract scope which could increase or decrease the cost of the project. It can be something simple, like changing a wall color, or it can be more complex, like relocating windows in a finished space or even adding another room. Almost all projects have change orders.
These are the most common type of change order, and they are usually initiated by the client.
Small and large projects alike can be highly complex, making it difficult to know every detail in advance. For example:
Change orders of this nature are usually initiated by the architect.
Remodels and building additions can involve discovery of hidden or unknown conditions in an existing structure or even underground. We will always try and get your approval first unless there is an immediate concern for safety. These change orders are usually initiated by the builder.
Sometimes clients opt to start small with the intention of building or expanding the project as they go. This may be done because the clients are unsure about the building experience or want to develop a familiarity and comfort level with the building team. It could also be to spread the cost out over time, or because the client isn’t completely clear on what they want yet, so they start small while they clarify the rest of their vision.
The urge to start and complete a project sometimes leads to beginning with unfinished or incomplete plans. This guarantees there will be change orders. Everyone involved should discuss the situation in advance and be in agreement about the process before starting.
Change orders can:
Fulfilling a change order frequently requires stopping work, rescheduling, backtracking, redoing finished work and generally costs more money. Read more about how to minimize change orders and mitigate their impact in the next section.
When a change order is initiated, the original schedule will most likely need to be adjusted because of the critical-path method. For example, adding a new security system requires one week’s worth of wiring work. This work, however, requires that we postpone installing the wall insulation, which then delays the drywall installation, which delays the painting, and so on, affecting every trade’s schedule thereafter.
If you are willing to pay a premium to subcontractors and suppliers, these delays can sometimes be reduced or avoided. That premium may include overtime pay, expedited shipping or hiring a more expensive subcontractor because they are available. Of course, the added work and/or materials involved in the change order may also increase the total project budget.
Hire and talk with your builder early, before the plans are complete. Our many years of experience with various materials and methods may save you time and money in the long run.
If saving money or keeping to the schedule are top priorities we recommend you try to have your plans completely mapped out before construction begins so you can do as few change orders as possible.
When a potential change arises, let us know as early as possible. Often times we can mitigate the added cost and time of change orders through discussing alternative material or labor options.
Sometimes change orders are unavoidable, so it’s good to plan for them in your budget.
Always submit change order requests formally through Sacred Oak Homes’ site supervisor.
