WHAT ABOUT CHANGES?

While every effort is made to create a contract that represents the entire scope of work at the time a build contract is signed, HRI has found that during a project, the work that we are asked to perform often exceeds and/or is different from the original scope of work. The format that is used to manage this process is called a "Change Order."

Change Orders, or Additional Work Authorizations are legal documents that combine with the original contract to describe one of three conditions discovered during the course of a project: Clarifications, Deletions or Additional Requests.

Clarifications

These are used to specify a product, color, sheen, dimension or other qualifying aspect of an item that is described in the contract as "exact paint color to be determined," or "owner to indicate exact placement of the shampoo niche with the carpenter after demolition," etc. There is no financial impact to the contract with a Clarification.

Deletions

These are used when there is a reduction in either scope or cost of the project. For example, if while remodeling a bath for which the contract reads: "HRI to provide and install a mirror above the vanity," the client discovers the perfect accent mirror that they want to use instead of the one called for in the contract, the lead carpenter on the job (or the Production Manager) will write a Change Order stating: "HRI to delete from the contract the provision of a mirror. Instead, HRI to install a new, owner-provided mirror." Then a credit for the amount of the mirror, is deducted from the overall cost of the project.

Additional Requests

These are used for a variety of reasons: the client has thought of some additional work to be done or requested an upgrade from one type of material to a more expensive material; the building department has an additional requirement that is code- or safety-related that will involve more work; or during the course of the project, an unknown or below-code condition is discovered that was not knowable prior to the start of the project (existing below-code framing in a wall that was opened up, wiring in a wall opened where a recessed cabinet or window is to be installed, for instance). Whenever possible, the exact cost of an Additional Request will be calculated and presented as a fixed number. However, sometimes the final cost cannot be pre-determined (as in dryrot repair), in which case the Additional Request will be represented on a Time & Materials basis.

Usually, Change Orders represent 8% to 10% of the original contract price. In older homes, typically Change Orders may be somewhat higher.

Lead Carpenters are equipped to handle most aspects of Change Orders and the Production Manager oversees the entire process. If there are design issues, the Sales department will be asked for input. Drawings are included (when appropriate) and need to be initialed, as well. The homeowner signs the Change Order and receives a copy for their records.