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.
Guam Compensation for Change Orders and Builder Allowance Underage provide important benefits and provisions for individuals in Guam's construction industry. These compensations and allowances aim to address changes and potential issues that may arise during a construction project, ensuring fair reimbursement and assistance to both contractors and clients. Here is a detailed description of each compensation and allowance scheme: 1. Guam Compensation for Change Orders: Change orders are modifications or variations made to the original construction plans or scope of work. These changes can occur due to unforeseen circumstances, design adjustments, or client requirements. The Compensation for Change Orders in Guam ensures that contractors are fairly compensated for additional work, materials, or resources required due to these changes. Keywords: Guam Compensation for Change Orders, fair reimbursement, modifications, variations, unforeseen circumstances, design adjustments, additional work, materials, resources. 2. Guam Builder Allowance Underage: Builder allowance underage is a provision that allows contractors to receive additional remuneration for any costs incurred due to being underage or insufficiently timed for completion. This provision provides financial support to contractors facing delays caused by external factors such as extreme weather conditions, material shortages, or other unforeseen events that hinder their work progress. Keywords: Guam Builder Allowance Underage, additional remuneration, costs incurred, underage, insufficiently timed, completion, delays, external factors, extreme weather conditions, material shortages, unforeseen events. Types of Guam Compensation for Change Orders and Builder Allowance Underage: 1. Lump Sum Change Order Compensation: Under this type, the contractor receives a fixed predetermined amount of compensation for any change orders encountered during the construction project. This fixed sum is agreed upon prior to commencing the project and helps in adequately addressing deviations from the original plans. Keywords: Lump Sum Change Order Compensation, fixed predetermined amount, change orders, construction project, deviations, original plans. 2. Percentage-Based Change Order Compensation: In this type of compensation, the amount paid to the contractor for change orders is determined as a percentage of the total project cost. The percentage may vary depending on the contractual agreement, the complexity of the change order, or the stage of the project at which it occurs. Keywords: Percentage-Based Change Order Compensation, amount as a percentage, total project cost, contractual agreement, complexity, stage of the project. 3. Time Extension Builder Allowance: This type of builder allowance provides additional compensation to the contractor for delays caused by factors beyond their control. The contractor receives reimbursement for extended project durations, additional labor expenses, or other costs incurred due to unexpected delays. Keywords: Time Extension Builder Allowance, additional compensation, delays, factors beyond control, extended project durations, additional labor expenses, unexpected delays. Guam Compensation for Change Orders and Builder Allowance Underage play a vital role in ensuring fair treatment and reimbursement for contractors while addressing unforeseen challenges in construction projects. By having these provisions in place, Guam's construction industry aims to foster a cooperative environment between clients and contractors, leading to successful and equitable project completion.
