Working
With Your New Home Builder: Understanding Change Orders
Signing a contract with your professional new home builder for a
brand new home is the culmination of an exciting process. You have
found the home you want and made the commitment to go ahead with the
purchase. In many instances, though, this may not be the end of your
decision-making. It is not uncommon for homeowners to continue to
fine-tune the vision of their new home for weeks afterwards.
A visit to the lighting supplier may trigger a desire for security
lighting not included in the contract for your new home. You may
decide to go for the fireplace after all or to enlarge the foyer
after seeing working drawings. Or you may simply want more
electrical outlets.
Professional new home builders will gladly attempt to accommodate
any changes or additions you want to make before construction of
your home begins, or even when it is in progress. But before you
make any decisions, talk with your builder.
Sometimes even small changes can have a significant impact on cost
or scheduling, particularly if construction is already under way. It
may mean changing some aspect of the construction—for instance, a
change in floor coverings may call for a different sub-flooring.
Changes can also result in delays. A professional new home builder
works with a tight construction schedule and subtrades who move from
one task to another and one home to another according to a
timetable.
It is crucial that all changes or additions are documented as
written change orders and signed by both parties. This eliminates
misunderstandings and ensures that everyone, from the people in the
sales office to the site crew, knows what has been agreed to.
Change orders are considered extras to the contract. Ask your
builder to explain how you are expected to pay for them. Adjustments
may be made to the outstanding balance due on closing date, you may
be charged separately later, or the cost could be added to a
scheduled construction draw.
