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.
In Arizona, Compensation for Change Orders and Builder Allowance Underage refers to the legal provisions and regulations pertaining to modifications made during the construction process and the financial arrangements associated with these changes. These provisions aim to ensure fair compensation for both builders and homeowners when alterations are made to the original construction plans. Here is a detailed description along with relevant keywords: 1. Change Orders: Change orders in construction projects refer to modifications requested by the homeowner or required due to unforeseen circumstances during the building process. Arizona Compensation for Change Orders ensures that builders are compensated adequately for extra labor, materials, or time caused by these changes. It helps protect builders from incurring additional costs that were not originally agreed upon. Keywords: change orders, construction modifications, unforeseen circumstances, compensation, extra labor, materials, time, additional costs. 2. Builder Allowance Underage: Builder allowances refer to a predetermined sum of money set aside by builders to accommodate certain choices and selections made by the homeowners during construction or in the future. In Arizona, the Builder Allowance Underage provisions help define the maximum limit within which homeowners can choose upgrades or customizations without incurring extra charges. This protects homeowners from unexpected expenses if they exceed the specified allowance. Keywords: builder allowance, customization choices, upgrades, predetermined sum, maximum limit, extra charges, unexpected expenses. Different types of Arizona Compensation for Change Orders and Builder Allowance Underage include: a) Standard Change Orders: These are alterations requested by homeowners to modify specific aspects of the original construction plans. Compensation for standard change orders ensures builders receive fair payment for additional work, materials, and time invested in implementing these modifications. Keywords: standard change orders, requested alterations, fair payment, additional work, materials, time. b) Unforeseen Change Orders: Unforeseen change orders are modifications required due to unexpected issues or structural problems encountered during construction. Compensation for unforeseen change orders protects builders from experiencing financial losses by providing reimbursement for additional materials, labor, and time incurred due to unpredictable circumstances. Keywords: unforeseen change orders, unexpected issues, structural problems, financial losses, reimbursement, additional materials, labor, time. c) Builder Allowance Underage Limits: Builder allowance underage limits set the maximum amount homeowners can spend on customization choices without incurring extra charges. These limits vary depending on the construction contract and help homeowners stay within their budget and avoid any unexpected expenses. Keywords: builder allowance underage limits, maximum amount, customization choices, extra charges, construction contract, budget, unexpected expenses.
