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.
South Carolina Compensation for Change Orders and Builder Allowance Overages: Explained In the dynamic world of construction and home building, change orders and builder allowance overages can often occur during the execution of a project. South Carolina recognizes these circumstances and has established specific guidelines for compensation in such situations. Change Orders refer to any modifications or alterations made to the original construction plans after they have been approved. These changes may arise due to various reasons, such as client preferences, design revisions, unforeseen structural issues, or material unavailability. South Carolina Compensation for Change Orders provides a mechanism to ensure fair compensation for both contractors and clients. Builders in South Carolina must have a well-drafted contract that outlines the conditions under which change orders will be considered, approved, and compensated. It is essential for all parties involved to establish clear communication channels to discuss the impacts of change orders and the resulting financial and time implications. As for compensation, South Carolina allows contractors to recover the additional costs incurred due to approved change orders. These costs can include labor expenses, materials, equipment rental, subcontractor fees, and any schedule extensions resulting from the changes. However, it is crucial to note that change orders that exceed a particular percentage, usually outlined in the initial contract, may require additional documentation and approval processes. Builder Allowance Overages occur when the costs of materials, fixtures, or finishes selected by the homeowner surpass the predetermined allowance stated in the construction contract. Allowances are set aside in the contract to provide flexibility for homeowners to choose specific items within a particular budget range. If the homeowner exceeds these allowances during the selection process, the additional costs incurred are known as builder allowance overages. These typically occur when homeowners desire higher-quality materials or when their choices exceed the original budgetary constraints. The responsibility of compensating for allowance overages falls on the homeowner, and it is vital for contractors to emphasize the importance of staying within the allowance to avoid any financial surprises. South Carolina Compensation for Builder Allowance Overages requires homeowners to cover the excess costs beyond the stated allowance. However, it is essential for contractors to clearly outline the process, documentation requirements, and potential implications in their contracts to avoid misunderstandings. To summarize, South Carolina recognizes the potential for change orders and builder allowance overages in the construction industry. Compensation for Change Orders allows contractors to recover additional incurred costs resulting from approved modifications to the original plans. On the other hand, Builder Allowance Overages require homeowners to cover the excess expenses when their choices exceed the predetermined allowances in the contract. By understanding and adhering to these guidelines, construction professionals and homeowners in South Carolina can navigate change order disputes and allowance overages more effectively, ensuring fairness and transparency in the construction process.
