Replies

1. 
   brownbagg | Mar 17, 2004 02:31am | #1

   around here change orders are usually 200% markup. markup are really high to keep owner from requesting cahnge orders.

2. 
   Frankie | Mar 17, 2004 03:45am | #2

   We have two forms for additional work.

   1. Change Order form - Must be signed, dated and paid for, in full, before any work is begun or materials are ordered. This keeps Clients from using CO's to defer deposits on future work to the last possible moment. Also this additional - or even subtraction of - work causes a hiccup in the process of construction. Hiccups are billed at a premium. More risk is involved because you have not had the same amount of time to schedule, antcipate and fully appriciate the impact it will have on the job.

   2. Addendum To Agreement form - The Client was so happy with the speed, progress and/ or quality of work that you are asked to extend to Kitchen remodel into the sunporch creating a Kitchen/ Hottub/ Party Room. It's complexity and number of components make it too cumbersome as a CO, but it should not be treated as a separate contract because it is interwoven into the original scope of work ie: same subs, same vendors, must be done during original scope of work, etc. So it's an Addendum. Terms are similar to terms you have established as a precedent in the original agreement.

   Hope this helps.

   F.

1. 
   sutton | Mar 17, 2004 04:13am | #3

   Frankie

   Very apt term- 'hiccup'- and the awareness that even a 'small' one can have unforeseen costly consequences which rightly results in charging a premium.

   Thanks

3. 
   GJR | Mar 17, 2004 05:23am | #4

   I collect 50% up front and the balance upon completion of change order work.  I use same numbers for change orders as for any other job.  I only use lump sum contracts, so when I give my number for the CO it is take it or leave it, and yes, CO's are always executed at a premium$.   Most CO's will inquire some other part of the job from being delayed or mess something up down the line that will require additional costs to the change. 

   "Don't take life too seriously, you are not getting out of it alive"
1. 
   Frankie | Mar 17, 2004 06:41pm | #5

   Huh?

   You write "I use same numbers for change orders as for any other job. " Okay, same prices. I got that.

   Then you write "and yes, CO's are always executed at a premium$." Okay, CO's are charged at a premium. I got that.

   Hmmm. Wait a minute! Are all your numbers charged at a premium?

   Are CO's charged at the same premium? What's the premium - +10%, +20%, +50%, +100%?

   F.

1. 
   GJR | Apr 23, 2004 12:47am | #7

     Frankie,  I figure change order work no different than I do other work.  I just add additional costs for delays or other problems that changes always create.  So when I say at a "premium"  I meant change order work cost more then if you had planned the work ahead of time.  "Don't take life too seriously, you are not getting out of it alive"

1. 
   Frankie | Apr 23, 2004 08:41am | #8

   Exactly!

   F.

4. 
   xMikeSmith | Mar 17, 2004 11:24pm | #6

   i used to use the parochial school conscience method.. if it gives pleasure to me, it must be sinful...

   so i would price them at  the level where it hurt me   ..... and offer up the sacrifice for the poor souls in purgatory...

    but then some vatican council or other decided there was no purgatory.. so that was out..

   now i try to price them when the decision is requested... and i always write them up... if it's at all complicated , i go back to the computer and put in all the costs and apply our standard markup ....or more..

   then if they sign off , we do it

   edit:

   CO's are sequentialy numbered... and Proposed CO's that are not accepted don't count.. but the proposal does get filed..

   each CO changes the Contract sum.. and the contract completion date.. both of those changes are listed on the CO...

   Mike Smith   Rhode Island : Design / Build / Repair / Restore

   
   

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   Edited 3/17/2004 4:31 pm ET by Mike Smith