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.
Nassau New York Compensation for Change Orders and Builder Allowance Overages: Change orders and builder allowances are a common part of construction projects in Nassau, New York. When unexpected circumstances arise or alterations to the original plans become necessary, change orders are issued to modify the scope of work. Builder allowances, on the other hand, are predetermined budgets allocated to specific items such as fixtures, finishes, or materials. In Nassau, New York, compensation for change orders and builder allowance overages is an important aspect of construction contracts. It ensures that contractors and subcontractors are fairly compensated for additional work performed or materials used beyond the initial agreement. There are different types of compensation for change orders and builder allowance overages in Nassau, New York: 1. Change Order Price Adjustment: If a change order leads to increased costs, the compensation may involve adjusting the original contract price to reflect the additional expenses incurred. This adjustment can be based on a mutually agreed upon formula or a negotiation between the parties involved. 2. Time Extensions: In cases where change orders or builder allowances cause project delays, compensation for the increased time needed may be considered. This can involve extending the project timeline and adjusting the construction schedule accordingly, allowing the contractor to accommodate the changes without facing penalties or liquidated damages. 3. Reimbursement of Actual Costs: Alternatively, compensation for change orders and builder allowance overages may involve reimbursing the contractor for the actual costs incurred due to the modifications or unforeseen circumstances. This can include labor, materials, subcontractor expenses, or any other directly related expenses. 4. Negotiated Percentage: Another approach to compensation for change orders and builder allowance overages is negotiating a specific percentage of the original contract price. This predetermined percentage can be applied to any additional work or expenses beyond the initial agreement, ensuring a fair and transparent compensation process. It's important for both contractors and clients in Nassau, New York, to establish clear guidelines and procedures for handling change orders and builder allowance overages. This includes defining the process for submitting change orders, documenting the additional work or costs, and agreeing upon the compensation method upfront. By addressing compensation for change orders and builder allowance overages in a comprehensive and detailed manner, construction projects in Nassau, New York can avoid disputes, foster better communication between parties, and ensure that everyone involved is compensated fairly for any necessary modifications or unforeseen circumstances that may arise during the construction process.
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.
