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.
Oklahoma Compensation for Change Orders and Builder Allowance Underage refers to the legal provisions and guidelines governing the financial aspects of construction projects in the state of Oklahoma. These provisions are designed to ensure that builders, contractors, and homeowners are adequately compensated for any changes to the original project scope and to address potential discrepancies or issues related to underage individuals involved in the construction process. This article will provide a detailed description of these compensation mechanisms and the categories under which they are classified. 1. Oklahoma Compensation for Change Orders: Change orders are modifications or alterations made to the original contract specifications that have financial implications. In Oklahoma, compensation for change orders is an important aspect of construction projects. The state recognizes that changes may be necessary due to unforeseen circumstances, evolving design requirements, or client preferences. Compensation for change orders can include reimbursement for additional materials, labor, and other associated costs incurred as a result of the change. The specific compensation amount will depend on the nature and extent of the change, as well as the agreement made between the parties involved. 2. Builder Allowance: Builder allowance refers to a set budget or allocation that builders receive from homeowners or clients to cover certain specified costs associated with the construction project. These allowances are typically provided to cover items like fixtures, finishes, or other materials whose final selection may not have been determined at the time of contract signing. It allows the homeowner to have some flexibility in choosing the specific products they want within a predetermined budget. Builders must provide transparency in accounting for these allowances, ensuring that the homeowner is aware of any deductions or additional charges if the chosen items exceed the allowance amount. 3. Compensation for Underage Individuals: Underage individuals involved in the construction process refer to individuals below the legal working age in Oklahoma. While it is essential to ensure the safety and well-being of all workers on a construction site, underage labor involvement poses legal and ethical concerns. The compensation aspect in this context refers to penalties or fines imposed on builders or contractors who employ underage workers. These penalties can range from monetary fines, license suspension, or other legal consequences. It is crucial for builders and contractors to verify the age of individuals involved in construction work to avoid violations and associated compensation penalties. In summary, Oklahoma Compensation for Change Orders and Builder Allowance Underage encompasses the financial aspects related to changes in a construction project and the involvement of underage individuals in the construction industry. Builders and homeowners must adhere to these legal provisions to ensure fair compensation, ethical practices, and compliance with state regulations.
