What is a Change Order?

Dated: May 21 2024

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πŸ“ Change orders are a common aspect of the construction process for new homes. They occur when there's a need to alter the original plans or specifications after the construction has already begun. Here's a breakdown of the process:

β—‰ Initial Agreement: Initially, when you decide to build a new home, you and the builder will agree upon the specifications, designs, materials, and costs. This agreement is typically detailed in a contract or purchase agreement.

β—‰ Request for Change: If you decide you want to make alterations to the original plan, you'll need to submit a formal request for a change order to the builder. This request should outline the specifics of the change you want, such as modifications to the floor plan, upgrades to fixtures, or changes to materials. Many builders use online systems to help manage this communication flow.

β—‰ Review and Estimate: The builder will review your change request and assess its impact on the project timeline, materials, and costs. They'll provide you with an estimate of how much the change will cost and how it will affect the overall construction schedule.

β—‰ Approval: After receiving the estimate, you'll need to approve the change order if you're satisfied with the proposed adjustments to the project. This approval is typically documented in writing and may require your signature.

β—‰ Revised Contract: Once the change order is approved, the builder will update the contract or agreement to reflect the changes. This revised contract will include the new specifications, costs, and any adjustments to the project timeline.

β—‰ Implementation: With the change order approved and the contract updated, the builder will proceed with implementing the requested changes to the construction project. This may involve coordinating with subcontractors, ordering new materials, and adjusting the construction schedule as necessary.

β—‰ Documentation: Throughout the process, it's important to maintain thorough documentation of all change orders, approvals, and communications between you and the builder. This documentation helps ensure transparency and clarity regarding the changes made to the project.

β—‰ Final Review: Once the changes are completed, it's essential to conduct a final review to ensure that the modifications meet your expectations and specifications.

It's important to note that change orders can sometimes lead to additional costs and delays in the construction timeline, so it's crucial to carefully consider any proposed changes and their potential impacts before proceeding. Effective communication between you and the builder is key to navigating the change order process smoothly.

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Shawn & Mark Augustine

Shawn is a seasoned real estate professional with over a decade of expertise in the dynamic world of real estate. She has vast experience in various facets of the industry, but specializes in new cons....

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