What is a change order?
A change order is work that is added or removed from the original contractor’s scope of work, as agreed upon in the contract signed by the client and contractor before work begins.
What happens when you have a change order?
Although Change Orders are common, we strongly recommend design variables be finalized before signing the contract. On average, we see around six change orders per build. Change orders are assessed at a minimum fee whether the owner approves or declines the requested change order. For example, the client would like to change where the toilet is, but the plumbing and drywall have been completed. The builder reserves the right to deny a change order request. If you submit a change order, the cost of the change must be submitted before any work is done.
How does a change order impact my project?
Other impacts associated with change orders include administrative and higher overall costs for a project. One change order can impact the entire build process and up to 70+ team members, vendors, and suppliers. It will also require all future schedules to be altered and updated to keep the project moving smoothly, and in addition, multiple change orders can delay the completion of your project.