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.
Nassau County, located in the state of New York, offers various compensation options for change orders and builder allowance underage. Change orders refer to modifications made to the construction plans or specifications after the contract is signed, while builder allowance underage pertains to situations where the builder has incurred more costs than initially estimated. These compensation options aim to ensure fairness and address unforeseen circumstances in construction projects. In Nassau County, compensation for change orders involves detailed procedures and guidelines. Contractors are required to submit a change order request, outlining the proposed modifications along with supporting documentation and cost breakdown. The change order is then assessed by the project owner or relevant authority for approval. Depending on the nature and complexity of the change order, compensation may cover additional labor, materials, equipment, or other expenses incurred. Builder allowance underage compensation in Nassau County relates to situations where the builder encounters unexpected expenses exceeding the original estimate. This can occur due to factors like unforeseen site conditions, changes in material prices, or design modifications requested by the owner. To qualify for compensation, builders must present valid documentation showcasing the discrepancy between the original estimate and the actual expenses incurred. The documentation may include invoices, receipts, and detailed cost breakdowns. Different types of Nassau New York compensation for change orders and builder allowance underage include: 1. Lump Sum Allowance: This form of compensation involves providing a predetermined amount to cover the anticipated changes or additional expenses in the construction project. The lump sum allowance is agreed upon in advance, allowing for streamlined compensation without the need for extensive documentation. 2. Cost Plus Percentage Fee: In this case, the builder is compensated for change orders and underage expenses based on the actual cost incurred, including an additional percentage fee for profit or overhead. The percentage fee is agreed upon in the contract or negotiated during the change order process. 3. Negotiated Compensation: Builders and project owners may negotiate compensation on a case-by-case basis, considering factors such as the nature of the change order, the impact on project timelines, and the builder's credibility. This allows for flexibility in determining suitable compensation while adhering to relevant regulations and budget constraints. It is important to note that each construction project in Nassau County may have specific guidelines and regulations regarding compensation for change orders and builder allowance underage. Project owners, contractors, and builders are encouraged to consult the appropriate local authorities or legal experts for accurate information and guidance tailored to their specific situation.
