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.
Kansas Compensation for Change Orders refers to the procedures and guidelines set forth by the state of Kansas to address changes or modifications made to construction projects within the state. This compensation aims to protect both builders and homeowners when unexpected changes occur during the construction process. Change orders often arise due to design modifications, unforeseen site conditions, or homeowner requests. Kansas Compensation for Change Orders ensures that builders are fairly compensated for any additional work required to accommodate these changes, while also ensuring that homeowners are not taken advantage of financially. There are different types of compensation available for change orders in Kansas, including: 1. Direct Cost Change Orders: This type of compensation covers the actual costs incurred by the builder as a result of the change order. It includes additional labor, materials, and any associated expenses directly related to the modification. 2. Time Extension Change Orders: Apart from compensating builders for additional expenses, Kansas Compensation for Change Orders also considers time extensions. This provision allows builders to request additional time to complete the project due to the added work resulting from the change order. 3. Percentage Markup: In some cases, instead of reimbursing builders based on direct costs, a percentage markup may be applied. This markup is predetermined and added to the original contract amount to compensate for any potential change orders that may arise during the project. Builder Allowance Underage, on the other hand, refers to a situation where the costs incurred for a particular construction item fall below the initially allocated budget or allowance. In Kansas, when a builder successfully completes a project section for less than the approved allowance, they are entitled to retention of a portion of the savings. This retention can serve as compensation for the builder's diligent resource management and cost-saving efforts. In summary, Kansas Compensation for Change Orders and Builder Allowance Underage are crucial aspects of the construction industry within the state. They ensure fairness and transparency regarding compensation for changes in construction projects while encouraging builders to efficiently manage project costs.
