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.
Washington Compensation for Change Orders and Builder Allowance Overages are terms used in the construction industry to refer to the financial settlements made between builders/contractors and clients when changes or modifications to the original construction plans are requested or when allowances provided for specific items are exceeded. Change Orders refer to modifications made to the original construction contract, including but not limited to alterations in design, material substitutions, or changes in project scope. In Washington, compensation for change orders is typically negotiated between the builder/contractor and the client, taking into consideration the costs associated with the requested changes, such as labor, materials, and additional time required to complete the work. It is crucial to document change orders in writing to avoid any disputes or misunderstandings between the parties involved. Builder Allowance Overages are related to allowances provided in the construction contract for specific items, such as fixtures, finishes, or appliances. These allowances set a predetermined budget for each item, and if the client selects options that exceed the original allowance, an overage occurs. In such cases, compensation for builder allowance overages in Washington is determined by the difference between the original allowance and the actual cost of the chosen item or option. It is advisable for builders/contractors and clients to clearly define the allowance amounts and discuss potential overages before finalizing the construction agreement. Different types of Washington Compensation for Change Orders and Builder Allowance Overages may vary based on the complexity and scale of the construction project. They can include changes in architectural plans, structural modifications, aesthetic upgrades, or even unforeseen circumstances like site issues or regulatory changes. Each change order and allowance overage requires careful evaluation and negotiation, ensuring fair compensation for the builder and managing client expectations. It is important for both builders/contractors and clients in Washington to understand the terms of compensation for change orders and builder allowance overages in order to establish a transparent and efficient construction process. Proper documentation, clear communication, and mutual agreement on the compensation terms are vital to minimize conflicts and maintain a positive working relationship throughout the project.
