What are change orders and what do they mean? This is an important topic because I think both parties try to void these at all costs. We both have budgets and time constraints/goals. Typically, an honest contractor will bid your project based off the plans they are provided and also by doing a site visit. Change orders can happen when unforeseen circumstances arise. In our line of work, there are a few variables that can necessitate something "unforeseen."
First, sometimes the plan does not pan out 100% once in the field. Our price and time estimates largely depend on earthwork quantities. Accurate quantities are only as good as the engineer's time he put into your plan, like making sure the existing topography is close to what is actually existing. If that is off, it can throw the plan off and once the work begin, the design starts to not work. If this happens, this could cause a change order because what we bid off of is not working in the field. This also applies to material quantities when you are installing storm drain.
Secondly, we cannot foresee what is underground in sensitive areas where it is rocky, even with a soils report. There are some instances when we start cutting in the ground that we may hit rock and specialized equipment may be needed. Not all rock is unmovable, a lot of it may be able to be fractured. It's important to know that if we know the area we are bidding is rocky, we may account for additional time spent and therefore, that bid may be a bit higher. However, if we continue to spin our wheels and cannot move it with what we have or it takes twice as long with what we do have, we will let the client know that we need to work together to get this done the most cost effective way for both parties.
Third, which is the most obvious, additional work that is not included or stated in the scope of work on the contract. Simply put, if it's not on your contract and it's something added or changed on site, it deems a change order.
It's super important to always read through your contract thoroughly and ask the questions you need for clarification. It's important to ensure your contractor is bidding accordingly and it equally important and highly recommended that the client get at least three bids to compare. If one is significantly lower than the other, this is a red flag. Sometimes this could be because they missed something or they may try to go in low just to get the job awarded just to then throw a bunch of change orders at you once work has begun. It's also important to note that every contractor bids or words things different, so ask questions and meet with the contractor. Most of the time, your gut instinct will be the deciding factor.
BGI makes the promise to always be transparent in our proposals and to give you the most accurate bid based on what has been presented to us. We are not known as "change order contractors." We honestly try to avoid it like the plague. However, if a circumstance arises that necessitates it, we promise to try to work out something that is fair and honest. Change orders don't have to be so bad that they halt your project, but make sure you are getting an accurate bid so that you can budget accordingly.
Comments