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samantha80_gw

Building a New House-Change Orders Huge Problem

Samantha80
10 years ago

We are building a house & have a good part of it done-framing, windows, rough, electrical, roof. Rec'd $35 K in change orders and all but a couple of minor ones are due to changes contractor made. Our contract states that contractor must put change orders in writing but did not. He promises to going forward. Might have made other decisions if we had been told in advance. What does one do? We do not want work to stop, this will add delay and add'l cost and must pay invoices as they arrive. Can the sum be paid now and disputed at the end?
Contractor says there is nothing to negotiate. Want him to act positively so work will continue to be of good quality. We are in a very difficult position. We think the contractor underbid and is making up for the difference in this way.
Anyone had similar experience and how did you proceed or resolve?Thanks

Comments (12)

  • shifrbv
    10 years ago

    You probably have to give a hint of what these change orders are, for someone to judge.

    If change order is due to some cost builder will incur: like due to fancy moldings, adding bathroom in the basement, or bogus fees - moving light from left to right, "documenting" choice of tile, different color of paint in the room, change to different type of 5" baseboards, installing different hardwood flooring (we had contractor claiming 3k extra for installing 5" hardwood vs 3").

  • MFatt16
    10 years ago

    Were any of these changes initiated by you? My builder doesn't charge for changes he makes and we have to sign off on anything that deviates from the plan. We started clearing today and these types of posts give me the willies as they could be in my future.

  • robin0919
    10 years ago

    How can the GC make change orders on his own and then charge you for it???? Doesn't make any sense at all. You might need to get a *&*%$& lawyer involved. 35k is ALLOT of money.

  • MFatt16
    10 years ago

    That is a lot of money. Why don't you get all the details, in writing, and tell the GC you just need to wrap your head around it. Then find an attorney to review stat.

  • _sophiewheeler
    10 years ago

    What type of contract do you have? A fixed price? Or a cost plus? It's sounding like you have a cost plus, and you are being charged the actual cost of the construction plus the builder's fee.

  • zone4newby
    10 years ago

    If you agreed to the changes without asking what they would cost, then I think you're stuck paying for them.

    If you didn't agree, then that's something else.

  • renovator8
    10 years ago

    A change order changes the Lump Sum or the Guaranteed Maximum Price of a contract due to a change in the scope of the work. A change order can be initiated by the Owner or the Contractor in writing but it should be priced and approved by the Owner before the work is done.

    Is your contract a standard one or did the contractor write it? If it was professionally written you should be adequately protected from surprise change orders.

  • Arlen Chapman
    2 years ago

    going through a similar situation. asked builder to put barn doors in house, want recess lights through out instead of pendents. this was all agreed upon the day we signed contract. we are 2 weeks from closing and i asked for finale cost. he is just now providing me with a change order. He's been adding up wall outlet in bathroom(which should be standard), recess lights over bar via pendents. He doesn't know much about the house bc he put on the change order-wooden shelves in pantry. However, wooden shelves were on the plans-but we agreed wired mesh would be ok but still wanted to charge us for wooden pantry. we did the outside kitchen just as on house plans-he states we went over-his contractors build it as it shows in plans...1. he has never communicated with us to let us know hey...you have this much allowance on this and it's going to put you this much over budget...are you good with that? Never has he given us the option regarding price nor provided us with a change order. i think he's trying to make up for the mistakes he's made and redo's he had to fix.

    Dont they have to do a change order and you agree upon instead of surprising you and given you a change order at the end.

  • millworkman
    2 years ago

    What does your contract state about change orders and the process they are to follow? What type of build? Is this a developer or tract type home?

  • res2architect
    2 years ago
    last modified: 2 years ago

    A Change Order is the end result of a change procedure that starts with the owner requesting or the contractor proposing a change, the contractor estimating the cost and the owner approving a written Change Order that alters the contract price and appears in the next request for payment.

    If this procedure is not spelled out in the construction contract, you are going to have a problem.

    Were any of these issues documented in writing or electronic communications?

    Who designed and prepared the contract documents. Were any design professional involved?

  • Verbo
    2 years ago

    Does he own it and is selling you the house at the end of the build? Or do you own it, and hired him to build for you?