Category: Contingency Fund

Barry Shaw
May 31, 2013

How Clients Influence Construction Change Order Costs

Additional costs are never comfortable, but should be anticipated and accounted for, with a contingency fund.

Sticking to building the approved architectural plans, with little change during construction, will not only assist greatly with controlling change order costs, but lead to a more timely schedule as well.
When changes are made in the field, a multitude of trades will be involved with associated additional costs.
For instance, relocating one load-bearing wall could likely involve re-engineering; demo subcontractor; concrete subcontractor; framing subcontractor; structural connection supplier; steel supplier; architect; general contractor; lumber supplier; etc.
Allocating a minimum average cost of $500 for each of the above would result in excess of $4,500 in change orders, for this request alone.
Therefore, its advisable to thoroughly ‘live thru’ the plans in a patient and comprehensive manner, so that when one is confronted with the real world reality, it’s no surprise.
If you want to learn more about this process which will ensure a cost effective outcome to your construction project, please contact us.

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