Thursday, July 2, 2015

What Is A Change Order When Building A New Home?

Q:

What's a “change order” when I am building a new home?

A:

A change order is a request to alter, exchange, or substitute a product or design feature that has already been approved, delivered, or installed. When you request a change, your builder will likely have a process in place to confirm the request and make sure it is completed to your satisfaction.

The farther along the construction path, the more costly a change order is likely to be in terms of actual dollars and time, so it’s best to make informed decisions early and try to stick to them during the building process.

In new construction (the construction of custom homes) change orders are usually created with a set amount for the fee that the General Contractor can charge. It is usually a percentage that is put on top of the total cost of the change order before taxes.

A change order is a normal process when building a custom home and is nothing to be fearful of.

Rob Abbott
Village Builders Inc.

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