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.
Miami-Dade Florida Compensation for Change Orders and Builder Allowance Overages: A Comprehensive Overview When it comes to construction projects in Miami-Dade County, Florida, compensation for change orders and builder allowance overages plays a critical role in ensuring a fair and transparent financial process. These compensation mechanisms address deviations from the original contract and provide guidelines for additional work or material expenses that may arise during the construction process. 1. Change Orders in Miami-Dade County: Change orders refer to alterations made to the original scope of work, materials, or design plans specified in the initial construction contract. These changes often become necessary due to unforeseen circumstances, design modifications, client preferences, or site conditions encountered during construction. Miami-Dade County has specific procedures in place to address change orders, ensuring that fair compensation is provided to the builder or contractor. Under the Miami-Dade County compensation guidelines for change orders, the following key points should be considered: a) Request and Evaluation Process: Builders or contractors must submit detailed change order requests, highlighting the reasons for the change and the financial impact it will have on the project. These requests are evaluated by project owners or authorized representatives to determine their validity and associated costs. b) Pricing Methodology: Miami-Dade County employs various pricing methodologies to determine fair compensation for change orders. These include cost-plus agreements, unit price contracts, or competitive bidding procedures. The pricing methodology may vary depending on the nature of the project and the specific requirements set forth by the County. c) Documentation: Accurate documentation is vital when it comes to change orders. All change orders and associated costs must be properly recorded and submitted with supporting documentation, such as revised plans, cost estimates, and materials invoices. This ensures transparency and facilitates seamless communication between all parties involved. 2. Builder Allowance Overages in Miami-Dade County: Builder allowances are predetermined sums of money allocated to specific items or materials within the construction contract. These allowances are meant to cover the cost of selecting and purchasing these items. However, in some cases, the actual cost may exceed the initially allocated amount, resulting in allowance overages. To address builder allowance overages in Miami-Dade County, the following considerations should be taken into account: a) Allowance Determination: Builder allowances are typically established during the contract negotiation phase. Both parties agree upon an estimated amount to cover the specified items or materials. These allowances are intended to strike a balance between providing a reasonable budget while allowing the client flexibility in selecting specific products. b) Overage Approval Process: If the actual cost of the selected item or material exceeds the allocated allowance, the builder or contractor must request approval for additional compensation. This request will undergo evaluation by the project owner, and necessary documents, such as invoices or receipts, must be provided as evidence of the overage. c) Compensation: Once the overage request is approved, Miami-Dade County outlines the compensation process, which typically involves reimbursing the builder or contractor for the excess expenditure incurred. The compensation may be determined based on prevailing market rates, competitive pricing, or other predetermined factors as agreed upon in the contract. In Miami-Dade County, compensation for change orders and builder allowance overages aims to maintain fairness and ensure project success. By implementing clear guidelines and documentation requirements, both builders and project owners can navigate these processes effectively, minimizing financial disputes and promoting a transparent and collaborative construction industry in the county.
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.
