Dreaded Change Orders – Why they are your best friend
Q: What is a change order
A: A change order is a process which allows the client to make changes to their project that is currently in production
Q: What is involved in applying a change order
A: Various events can cause a change order; an unforeseen; a completed item that the client doesn’t like; or an addition to the project that is an ‘after-thought’. Whichever the case may be, the change order is discussed among client and contractor to confirm that the item is in fact a change order.
Q: What costs are involved
A: Dependent upon how change orders are reflected in the Renovation Agreement, it can work on a fixed cost, or a Time and Material cost.
Q: What is the final outcome
A: In order to activate the change order; the pricing must be determined on whether it is a fixed cost change order or Time and Material change order. Regardless, a Change Order Form should be documented and signed by both parties, outlining the work that is to be enacted, how long it will take to complete the Change Order, thus increasing the amount of time to the project’s overall completion, plus the pricing of the Change Order. This ensures both parties are fully aware of the change to the project, and the cost and time involved.
Q: Why are they your best friend
A: Not only is the change order the best friend for contractor, it is for the client as well. Verbal changes should not account for ‘confirmation’ of a change order. This not only adds ‘shock’ value to the client at the end of a project, if a contractor tries to bill for the ‘verbal’ change order at that time, and could result in non-payment and undue stress associated to verbal change orders for extra work provided by the contractor. Once a change order is communicated and agreed upon, document and present the Change Order immediately, and if it’s a fixed price, payment should be made at the time of change order enforcement as it is work being done at that time; or bill at the immediate completion of the change order if agreed to Time and Material. Documented Change Orders relieves any miscommunication that verbals can be notorious for.
Punch List
Q: What is a punch list
A: A Punch List is a documented list of deficiencies once a project is complete. A professional contractor’s punch list should be minimal; however, it is rare that a punch list is non-existent. The contractor should do a walk thru with the client to ensure both agree that the item in question is an actual deficiency. i.e. paint drips on a door would be considered a deficiency; however the dislike of a colour on the door and wanting to change the paint colour is not a deficiency.
Q: What can a person expect while compiling a punch list
A: A client can expect to walk through the project with their contractor and/or site supervisor thoroughly inspecting all aspects and areas of the completed project. Dependent on the size of the project, it could take an hour or two to complete and document any noted deficiency.
Q: What results do you get with this list
A: Once the walkthrough is complete, the contractor will document the Punch List and ensure the client receives a copy and both parties are agreeable to the items noted. The Punch List of a reputable contractor will also include ‘due dates’ so that no deficiency takes months to complete; particularly if a deficiency item is based on work performed by a sub-contractor. This provides assurance to the client that the contractor will ensure the sub-contractor in question has, for example, 2 weeks to complete their deficiency. Once all items are complete, this completes the project and final payment is issued by the client. From final payment onwards, any items that come up are considered warranty items.
How did we do? The sign of a good contractor
Q: List 5 things that are key to the sign of a quality contractor
A:
A substantial list of references; must include past clients of various years (i.e. 5 years to 2 years, etc.) as well as current clients
A detailed contract (a contract that is too ‘vague’ could lead to many headaches and unexpected costs throughout a project)
Ensure they carry all necessary licenses and insurances
Ensure they have WSIB coverage as well as their sub-contractors
Ensure they are knowledgeable
Q: What signs to look for that suggest problems
A: Lacking any of the above; any suggestion or insinuation to do your project without required permits; any suggestion to ‘pay cash’ to receive a lower cost to pay for your project, or avoid the HST.
Q: What price difference is there
A: With a professional renovator that has all licenses, insurance coverage and liability insurance in place increases their company overhead and therefore will not be the cheapest of any bids you receive. Further, ensuring any sub-contractors that they work with to be reputable and fully licensed is also important. With someone who comes across as ‘professional’ but is lacking or does not have the important criteria will be cheaper, however, you are putting your project at risk. i.e. doing a project without appropriate permits can easily spell a project not being done to code and costing you large down the road.
Q: What can one expect from Probuilt over the cheaper contractor
A: Several key items; professional sub-contractors who are licenses and fully warrantied; project timeline duly documented and provided to the client so they are aware of the start and finish of their project; full communication between contractor and client due to support staff both on site and at office level. Full streamlining of a project and professional processes and procedures ensures a relatively stressfree renovation project, opposed to the ‘contractor and his truck’ showing up.