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.
Fulton Georgia Compensation for Change Orders and Builder Allowance Overages refers to the monetary adjustments made in construction projects when changes or modifications are requested during the construction process. In Fulton, Georgia, compensation for change orders and builder allowance overages is a crucial aspect of ensuring smooth project execution and aligning the client's expectations with the builder's deliverables. Change orders in construction projects occur when modifications or alterations are made to the original scope of work. These changes can be requested by the client, architect, designer, or even due to unforeseen circumstances. Fulton Georgia Compensation for Change Orders recognizes the additional expenses incurred due to these adjustments and sets guidelines for fair and reasonable compensation between the builder and the client. Builder allowance overages, on the other hand, pertain to instance where the expenses incurred by the builder are higher than initially anticipated. These overages may be a result of factors such as market price fluctuations, unforeseen material costs, or design changes requested by the client. Fulton Georgia Compensation for Builder Allowance Overages ensures that the builder is compensated for these additional expenses as per agreed-upon terms. In Fulton, Georgia, there are several types of compensation for change orders and builder allowance overages. These include: 1. Fixed Percentage: This type of compensation entails a predetermined percentage of the project's total cost to be allocated towards change orders and builder allowance overages. For example, if the fixed percentage is 10% and the project cost is $100,000, a maximum amount of $10,000 will be available for compensation. 2. Negotiated Compensation: In some cases, the compensation for change orders and builder allowance overages is negotiable between the builder and the client. This allows for a tailored approach, considering the specific circumstances of the project. 3. Cost-Plus Method: Under this method, the builder is reimbursed for the actual expenses incurred on change orders and builder allowance overages, along with an agreed-upon fee or percentage to cover overhead and profit. This approach provides a transparent and itemized breakdown of the costs. 4. Allowance Ceiling: In certain cases, a ceiling or maximum limit is set for allowances and any overages result in direct compensation. This ensures that any cost increases beyond the agreed-upon allowance are adequately covered. 5. Incentive-Based Compensation: This compensation approach incentivizes builders to minimize change orders and keep allowance overages to a minimum. An agreed-upon bonus or incentive may be provided if the project is completed without significant changes or overages. In conclusion, Fulton Georgia Compensation for Change Orders and Builder Allowance Overages is a vital aspect of construction projects in Fulton, Georgia. It ensures fair reimbursement for the additional costs incurred due to change orders and builder allowance overages. Different types of compensation approaches, such as fixed percentage, negotiated compensation, cost-plus, allowance ceiling, and incentive-based compensation are applicable in Fulton, Georgia, depending on the project specifics and agreements between the builder and the client.
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.
