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.
Queens, New York is one of the five boroughs of New York City. It is the largest borough and is home to a diverse population of over 2 million people. Known for its vibrant neighborhoods, rich history, and cultural attractions, Queens offers a multitude of opportunities for both residents and visitors alike. In the construction industry, compensation for change orders and builder allowance underage are two important aspects that need to be understood. Change orders refer to any modifications or alterations requested by the client after the initial contract is signed. These changes may include additional work, design changes, or unforeseen circumstances that require adjustments to the original plans. Compensation for change orders in Queens, New York, varies depending on the contract and the specific circumstances. Common methods for determining compensation include time and material pricing, cost-plus pricing, or fixed-price change orders. Time and material pricing involve billing the client for the actual hours worked and materials used, while cost-plus pricing adds a predetermined percentage to the direct costs. Fixed-price change orders establish a set price for the requested change, regardless of the actual costs incurred. Builder allowance underage, on the other hand, refers to the situation where the client has selected materials or finishes that are below the agreed-upon budget allowance. In such cases, the builder might provide alternative options that align with the budget or offer the client the choice to pay the difference to maintain their original selection. The specific terms and conditions for compensation in builder allowance underage cases can vary depending on the contract and agreement between the builder and client. In Queens, New York, there are different types of compensation strategies for change orders and builder allowance underage, including: 1. Negotiated Compensation: This involves discussing the change order or builder allowance underage with the client and reaching a mutually agreeable compensation amount. Depending on the circumstances, negotiation can result in adjustments to the contract price or additional compensation for the builder. 2. Predefined Pricing Tables: Some contracts may have predefined pricing tables that outline specific compensation rates for various types of change orders or builder allowance underage scenarios. Builders can refer to these tables to determine the appropriate compensation for the specific situation. 3. Time and Material Pricing: This method involves tracking all expenses, including labor and materials, and billing the client accordingly. The builder calculates the compensation based on the actual costs incurred during the change order or builder allowance underage. 4. Fixed-Price Change Orders: In this scenario, the builder and client agree upon a fixed price for the change order or any additional expenses incurred due to builder allowance underage. This fixed price is determined in advance and doesn't fluctuate based on actual costs. Whether it's compensation for change orders or builder allowance underage, clear communication and documentation are crucial to ensure a fair and smooth process. Contractors and builders should always consult legal experts and carefully review the contract terms to understand the specific compensation guidelines and protocols established for their projects in Queens, New York.
