Change Orders – What’s Fair / What’s Not
DEAR TIM: My builder has presented me with a "change order." He wants to charge me additional money to cover the cost of enlarging the opening for the medicine cabinet I selected. Plumbing pipes and wires also have to be relocated. I picked out this cabinet at the beginning of the project. Do you think it is fair for me to have to pay? How could this have been avoided? R. P.
DEAR R. P. : Based upon your detailed description of the circumstances, I feel that you should not have to pay for this mistake. Because you selected the cabinet prior to the start of construction and made your builder aware of this selection, you are not responsible for the mistake.
Change orders are a very sensitive issue in construction. Frequently, relationships between owners and builders deteriorate because of change orders. It is not uncommon for both parties to be at fault for this dilemma. Many homeowners feel that they are often overcharged for changes in a project.
Most professional builders try to avoid change orders. They are disruptive to scheduling. Also, it is very difficult to charge the homeowner for the true cost of initiating the change order. A simple change order can devour 4 - 6 hours of time.
The builder has to meet with you concerning the change, calculate the cost of the change, obtain your approval, prepare the paper work for the change order, and then administer the change order. This all should happen before any work begins!
One of the most common causes of change orders is poor planning. During the planning stage of a project, all options should be discussed. This pertains to virtually every aspect of the project.
How would you like me to build your new home? It's probably impossible for me to fit your job into my schedule, but I will gladly share hundreds of my tricks and building secrets with you and your builder. Check out my New House Specifications.
Architects, builders, and contractors often forget that some homeowners have a tough time visualizing the finished project. This inability to visualize, on the part of the homeowner, can become a builder's worst nightmare.
Change orders that result from a homeowner who modifies the plan during the course of construction cannot be blamed on the builder. It is not uncommon for people to change their mind. However, individuals who do this should be prepared to pay for this process.
Remember, the builder and his subs based their original prices on specific tasks and materials. Any extra work resulting in a change should be paid for by the homeowner. Changes in work that delete work or materials should result in a credit for the homeowner.
There are various things that you can do to minimize or eliminate change orders in a project. Many of them are very simple to do. Try to think through all aspects of your project. If you are unsure of how something will look, ask the architect or builder to draw a quick sketch of the area in question.
When selecting fixtures or other items, spend as much time as possible at the showrooms. Ask as many questions as possible. Look at as many brochures as you can. Study the photographs in the brochures and try to imagine a particular item in your house.
Your specific problem could have been avoided very easily. After you make specific selections regarding the fixtures you intend to use, suggest to your builder that he obtain copies of all technical literature pertaining to each product. This literature provides very important dimensions and mechanical specifications that your builder needs.
Various subcontractors need this information as well. Since you notified your builder as to the exact model of medicine cabinet, he should have obtained the exact dimensions of the cabinet before the carpenters framed the opening. Kindly tell your builder to open his checkbook to pay the plumber, electrician, carpenter, and plasterer for the mistake.
Column 018
