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.
Mecklenburg County, located in the state of North Carolina, offers various compensation options for Change Orders and Builder Allowance Overages. The county prioritizes ensuring fair arrangements between builders and homeowners by implementing comprehensive guidelines and provisions. Change Orders Compensation in Mecklenburg County: 1. Mecklenburg County Change Order Compensation: This compensation is provided to homeowners when there are changes to the original construction plans agreed upon by builder and homeowner. Change Orders may arise due to modifications in design, materials, or scope of work, which result in additional costs. Mecklenburg County has strict rules and procedures to determine fair compensation for these changes, ensuring transparency and fair dealing. 2. Mecklenburg County Change Order Documentation: To avail compensation for Change Orders, homeowners must maintain thorough documentation, including written requests, quotes, receipts, and any other relevant communication regarding the changes made to the original plan. The county's compensation process requires detailed documentation to evaluate the additional costs incurred appropriately. Builder Allowance Overages Compensation in Mecklenburg County: 1. Mecklenburg County Builder Allowance Overages: Builder allowances are predetermined amounts set aside by the builder to cover costs related to the selection of specific materials, fixtures, or finishes by the homeowner. If the chosen options exceed the allowance, Mecklenburg County allows homeowners to receive compensation for these overages. The compensation process is designed to resolve disputes and ensure a fair reimbursement. 2. Mecklenburg County Builder Allowance Overages Approval: Prior to finalizing any builder allowance overages, homeowners must seek written approval from the builder. Mecklenburg County stresses the importance of clear communication and agreed-upon terms between builders and homeowners to avoid misunderstandings during the construction process. Mecklenburg County's Compensation Process: 1. Evaluation of Costs: Mecklenburg County follows a comprehensive evaluation process to determine the fair compensation amount for both Change Orders and Builder Allowance Overages. The county considers factors such as market rates, material prices, labor costs, and any other relevant expenses. 2. Transparent Communication: Mecklenburg County emphasizes open and transparent communication during the compensation process. Both parties (i.e., builders and homeowners) are required to share all relevant information and cooperate with county officials when requested. This ensures a fair assessment of additional costs and a just outcome for all parties involved. 3. Dispute Resolution: In the case of disputes or disagreements between builders and homeowners regarding Compensation for Change Orders and Builder Allowance Overages, Mecklenburg County provides mediation and arbitration services. These procedures aim to resolve conflicts amicably and reduce the need for costly and time-consuming legal action. By implementing robust compensation guidelines, Mecklenburg County ensures that homeowners receive fair reimbursement for Change Orders and Builder Allowance Overages in North Carolina's construction projects.