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  • Writer's pictureBarry Shaw

How To Pay Home Building Costs for Change Orders

Change Orders are services (design, engineering and construction) that are outside of and in addition to the Original Contract’s Scope Of Work, for a particular Project.

Most Change Orders occur during construction and consist of material and labor requirements to accomplish a certain Task(s).

Depending on the size and complexity of the work, some of the ways to pay for them are: deposit with balance upon completion of work; deposit with payments as work progresses; no deposit and lump sum payment upon completion of work and possibly a credit or ‘trade off’ against other work of equality in the Original contract.

The above scenarios are assuming the customary ways and means of the General Contractor providing all material and labor needed for the Task. Occasionally, the Owner will for instance purchase specific material and the General Contractor will install it. Either way, the same or similar payment(s) can be made.

For more information on the upside and/or downside associated with the above options, contact us.


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