Change Orders are instructions to revise construction plans after they have been completed. Change orders are common to most projects, and very common with large projects. After the original scope (or contract) is formed, complete with the total price to be paid and the specific work to be completed, a client may decide that the original plans do not best represent his definition for the finished project. Accordingly, the client will suggest an alternate approach.
Common causes for change orders to be created are:
" The project's work was incorrectly estimated;
" The customer or project team discovers obstacles or possible efficiencies that require them to deviate from the original plan;
" The customer or project team are inefficient or incapable of completing their required deliverables within budget, and additional money, time, or resources must be added to the project; and
" During the course of the project, additional features or options are perceived and requested.
Cook Illinois Compensation for Change Orders and Builder Allowance refers to the financial adjustments made in construction contracts to account for changes requested by the owner/client or to cover the cost of unforeseen circumstances. Cook Illinois, known for their expertise in the construction industry, offers various types of compensation options for change orders and builder allowance underage. 1. Change Orders: Change orders involve modifications or additions to the original construction plans during the construction phase. Cook Illinois provides compensation solutions for the following types of change orders: — Scope Changes: These entail alterations in the project scope, such as additional features or functionalities requested by the owner. Cook Illinois offers a fair compensation plan to cover the costs associated with these changes. — Design Changes: When there is a need to modify the architectural or structural designs of the building, Cook Illinois provides compensation options to address the extra expenses incurred. — Material Changes: If there is a need to substitute or upgrade materials due to unforeseen circumstances, Cook Illinois ensures appropriate compensation for the additional costs incurred. 2. Builder Allowance Underage: Builder allowances refer to an amount of money set aside within the project's budget to cover specific expenses like fixtures, finishes, or upgrades. Sometimes, these builder allowances may fall short due to changes made by the owner, and Cook Illinois offers compensation options to address this underage: — Upgrade Allowance Underage: In cases where the owner requests upgrades exceeding the original builder allowance, Cook Illinois provides compensation options to cover the additional expenditures. — Fixture/Finish Allowance Underage: If the actual costs of fixtures and finishes chosen by the owner exceed the originally allocated amount, Cook Illinois compensates for the underage expenses. Cook Illinois understands the importance of flexible compensation options for change orders and builder allowances. By tailoring their compensation plans to accommodate these changes, they show their commitment to excel in delivering quality construction projects while ensuring client satisfaction.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
