The Building Budget Buster: Change Orders

Font Size
February 9, 2016

How to Save Money, Time, and Headaches When Building

The first mistake when building— not completely thinking through the project— causes the second biggest mistake: change orders.

Construction Change OrdersIn their excitement and enthusiasm, first-time buyers tend to run ahead of the design process.

Whether a commercial, industrial, or residential project, first time building owners need to understand that constructing a building is a process. It never pays to rush or skip ahead. Take time to consider every detail in advance.

Defining Change Orders

In construction terms, a “change order” is a document amending the original building material order or construction contract. If the original plans are modified after the signing of the contract— or if the completion date changes— a change order is required.

For example, when a customer purchases a RHINO pre-engineered steel metal building, they specify:

• Width, length, and eave height
Type of steel framing system and column shapes
• Type of endwall
Roof slope, style, overhang depths
• Bay spacing
• Specified roofing and siding materials, gauges, and colors
• Inclusion/exclusion of base angles, girts, and trim
• Number of door openings and sizes
• Number, sizes, and types of doors and windows included
Required roof, seismic, snow, and wind loads
• Design standard followed
• Location of job site
• Accessories including gutters and downspouts, insulation, mezzanine floor systems, skylights and wall lights, vents, etc.

When the buyer decides on all of these details, RHINO issues an order form with complete pricing to the buyer. Once the buyer signs the order form and returns it to the company with the deposit, RHINO sends the order on to design and engineering.

What happens if the customer decides to upgrade to a better insulation system, or add gutters, or delete the windows? RHINO issues a change order, amending the price. The project is put on hold until the buyer approves the change order.

What if the buyer wants more serious structural changes? Perhaps the customer suddenly wants to add overhangs, increase the wind load, or make the building 4’ wider. RHINO issues a change order, amending the price and engineering costs.

Change orders delay building projects. The order is put on hold until the buyer approves the updated plans and the company receives the remaining balance of the deposit.

Once an order clears engineering and progresses on to production, no structural changes are possible.

The biggest danger to the customer is pricing changes. If postponement continues too long, steel prices may rise, cutting deeply into the building budget.

Minimize Construction Cost Overruns, Projects Delays, and Headaches

Purchasing a pre-engineered steel building is not complicated.

RHINO’s experienced steel building experts discuss every aspect of the building order in detail, making sure the company and the customer are “on the same page.”

Greater problems arise at the construction site after the delivery of the building materials. Miscommunication between the building owner, the general contractor, and sub-contractors may also generate change orders.

Change orders at this part of the process can be very expensive. Construction delays may mean additional building costs and possibly lost revenue on commercial projects.

To avoid costly delays and frustrating misunderstandings, PLAN, PLAN, PLAN. Know exactly what you require before you order materials or begin construction. Be sure you have fully communicated details of how your new structure should be finished out.

Minimizing unnecessary building modifications saves the buyer money, time, and great aggravation.

Plan Thoroughly. Be Patient. Enjoy the Process.

Some change orders are unavoidable. Code officials or building inspectors may demand modifications. Failing to communicate and understand contract parameters may causes rifts between the parties involved in the project.

However, most plan alterations are owners simply changing their minds— sometimes repeatedly.

Resist the urge to keep “tweaking” the plans to create the “perfect” building.

The more detailed your plans, the greater the chance your project will runs smoothly, on time and on budget.

Call RHINO toll free at 888-320-7466

RHINO Steel Building Systems create sturdy, durable, attractive buildings for home and business. Our goal is to streamline the building ordering and construction process, making it simple, easy, and enjoyable to build our prefabricated metal buildings.

Questions? Call RHINO today for more information and a free quote.

- by Bruce Brown,
CEO of RHINO
Steel Building Systems, Inc

Leave a Reply

Your email address will not be published. Required fields are marked *










Talk To An Expert 888.320.7466