What Is A Change Order From My Renovation?

Q:

What's a “change order”?

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 by your contractor at your project.

A change order is the same no matter if you are renovating your home, adding an addition or having a new custom home built. Since you are asking for something that was never agreed upon a new agreement must be created and this is what a “change order” is at its essence.

The change order will state what the change is that you are asking to be completed and it will also give you a cost for that change. Once you sign it you and your contractor have agreed to amend the original contract in the stated area of work only.The rest of the original contract stays the same.

Just because a change order is created doesn’t mean that you have to sign it. A change order is also something that you can decline once you see the final cost on paper. When building a custom home your contractor will probably end up creating dozens of change orders for you. Some of these changes are asked for by the client and some are recommendations from the contractor to alter something or upgrade something in the home as the home is being constructed. Sometimes depending on the type of change you can be given several change orders all with different options on them and it is up to you to choose the one that is right for you. For example; When building a new custom home the home was estimated with typical to the minimum code batte insulation. Once the building has started your contractor will offer you the ability to change that insulation to something that is better, there are half a dozen ways that the insulation in a home can be upgraded, every different way will come with a different price. You are then presented the different options on several different change orders and choose the one that you want and also will fit into your budget. The others are filed as rejections and only kept on file to prove that you were offered them.

Occasionally you will be presented with a change order that details the changes you want but has no cost attached to it. This is because the change you are asking for will not cost you more then what the original would have cost you. You are only agreeing to the new change order so that everyone has a record of what and when you have changed something from the original contract.

A change order isn’t something that you should be scared of, it’s something that you should expect your contractor to produce every time you want to change something from the original contract. This is a sign that your contractor is a professional and is interested in keeping your project well organized and running smoothly in a timely manner.

Rob Abbott
Village Builders Inc.

When renovating your contractor must balance customization and the budget

The Choice is Yours

The professional remodeler walks a fine line. It is our job to balance a remodeling project's cost and construction efficiencies while customizing our design and specifications to meet our client's desires.

It is critical that our clients fully participate in the remodeling process to make sure the end result meets their lifestyle needs and expectations.

To that end, we encourage and enable our remodeling clients to select from an increasingly diverse list of products and finishes before we begin construction. Most often, these selections are from the catalogs or websites of our trusted suppliers and feature familiar brand names with rock-solid warranties. This allows us to do our work efficiently while keeping the budget in check.

Whenever necessary, we accommodate a special request from a client, assuming the product or system is available and within the agreed budget ... or the budget is revised to include it.

This "customization" process is a two-way street of responsibility and respect. We rely on our clients to make their selections on time to avoid delays in delivery and construction.

We do our part by establishing deadlines and milestones as part of the construction agreement. We identify when materials and finishes need to be ordered so they are on the job site to maintain our construction schedule. Our schedule also confirms "lead times" -- the time between when a product is ordered and when the supplier can deliver it -- so that we can coordinate its installation with the proper contractor.

Every missed deadline almost always results in a delay in construction ... which invariably translates to additional costs. Worse, it can trigger a domino effect, affecting not just its point in the schedule, but also several others that follow. Remodeling is a linear process, often requiring one step to be finished before another can start; a glitch can therefore ripple through the schedule, affecting tasks and deadlines that might appear unrelated.

Over the years, we've not only come to expand the choices we allow our homeowners to make -- from minor structural changes to any number of finishes -- but also how to accommodate those choices in the overall scheme and schedule of the project. We leave plenty of leeway for lead times (especially for new or unfamiliar selections) and use technology to find reliable sources for special orders.

Our ultimate goal is to deliver a satisfying experience and exceed our clients' expectations. We coach our clients to understand the remodeling process and the critical role they play in it, and leave ample time to enable comfortable, unrushed decisions. We are here to advise, offer choices, and ultimately fulfill dreams -- as well as complete projects that will stand the test of time and evoke memories that span generations.

Warm Regards,

Doug Abbott
Village Builders

 This is an exert from a newsletter that is distributed to all former, current and future clients of Village Builders Inc. It is written by the President Doug Abbott. If you would like to receive this newsletter feel free to email me at www.robabbott@villagebuilders.ca

Rob Abbott
Operations Manager
Village Builders Inc.