CUSTOM HOME BUILDING – PART 7

STRICTLY ADHERE TO THE CHANGE ORDER PROCEDURE

Most construction contracts indicate that if a change occurs after the initial contract is signed the owner and contractor will sign a written change order documenting the type of change and the amount of increase or decrease in the contract price associated with the change. In addition, the increase or decrease in the amount of time to complete construction associated with the change may likewise be documented in the change order.

As an owner you should attempt to strictly adhere to the written change order procedure in order to minimize confusion and disputes later, and having a tight set of plans and specifications upfront should minimize the amount of changes that occur once the build starts. Generally speaking, the less changes the better, since significant changes may slow down the project, and while there are many good builders, unscrupulous builders may attempt to overcharge in connection with change orders.

If changes do occur, make sure there is a fully executed change order which sufficiently describes the change, and the amount of increase or decrease in the contract price and time to complete the project associated with the change is documented in a change order before the changed work commences. Strictly adhering to the change order procedure will minimize the risk of confusion, delay and misunderstanding later!