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The Inside Outside Guys: Spending Time Up Front Can Lessen Need For Costly Change Orders

From the Detroit News | By Ken Calverley and Chuck Breidenstein

DETROIT, March 14, 2024 ~ The license law in Michigan and many other states requires contractors to submit written proposals that include clear specifications and pricing for the work to be done.

Before a job even begins, an owner and contractor should have complete and unambiguous documents to represent the work to be completed and the amount it will cost.

During construction, changes to the original contract may occur for several reasons that include additional work ordered by the client and circumstances that are often the result of unforeseeable conditions such as unstable soils, hidden structural issues or even contamination, such as mold or asbestos.

A business model in the industry for many years saw contracts that contained numerous “allowance” items, each valued at a defined dollar amount. The idea was to account for specific materials or phases that could not be accurately priced in advance, either due to time constraints or unknown conditions.

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