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.
Virginia Compensation for Change Orders and Builder Allowance Underage: A Detailed Description In the construction industry, change orders and builder allowances may often arise during the course of a project in Virginia. These are essential components of managing unforeseen circumstances and ensuring smooth construction progress. Virginia compensation for change orders and builder allowance underage involves various considerations to protect the rights of contractors, builders, and property owners. Let's delve into the different types of compensation available for change orders and builder allowances in Virginia. Change Orders: 1. Scope Change Compensation: When the original project scope deviates due to unforeseen conditions, redesign requirements, or any change in preferences, a change order is initiated. Compensation for these scope changes involves adjusting the contract price, ensuring that the contractor receives fair payment for additional work or materials. 2. Material or Design Changes: If modifications in the originally specified materials or design are required, additional compensation can be agreed upon to cover the difference in cost. This ensures that the contractor is not unfairly burdened with unexpected expenses. 3. Time Extension Compensation: Change orders often result in project delays. To compensate for increased construction duration, adjusted contracts may include provisions for additional time extension compensation. This accounts for the builder's extended commitment due to changes beyond their control. Builder Allowances: 1. Construction Material Allowance: Builder allowances may include provisions for the selection and purchase of materials within a certain price range. Compensation for builder allowances related to materials involves adjusting the contract price to cover the actual cost of materials chosen, up to the specified limit. 2. Allowance for Fixtures and Finishes: In some cases, property owners may have the freedom to select finishes and fixtures within a certain price bracket. Compensation for these builder allowances ensures that the contract price is appropriately adjusted to account for the actual cost incurred in purchasing these chosen items. 3. Upgrade Allowances: Allowances for upgrades enable property owners to enhance the project beyond the original specifications. Compensation for upgrade builder allowances usually involves adjusting the contract price to reflect the additional costs associated with the chosen upgrades. It is important to note that each construction contract may have specific clauses and provisions regarding compensation for change orders and builder allowances in Virginia. These terms should be carefully reviewed and negotiated before construction commences. Consulting legal professionals familiar with Virginia construction law can ensure all parties' rights and interests are protected throughout the project. In conclusion, Virginia compensation for change orders and builder allowance underage is a vital aspect of construction projects. By providing fair compensation for scope changes, material modifications, time extensions, and allowances related to materials, fixtures, finishes, and upgrades, construction contracts can maintain transparency, protect the interests of all parties involved, and enable successful project completion.
