WHAT IS A CHANGE ORDER CONTINGENCY FUND?
Nobody likes change orders! For you, the Owner, they present an unusually unanticipated expense. For the contractor they tend to delay the project schedule and require a greater amount of administrative time in proportion to their cost. Nevertheless, we have found that even with the best of construction plans, some change orders are likely to arise. Based on our experience it is anticipated that change orders may arise as a result of both Owner requested upgrades from current plans and Contractor requested changes arising from either concealed conditions or actual site conditions that vary from those described in the construction drawings or initial discussions. Therefore, it is recommend that you initially budget a percentage of at least 5% to 15% of the estimated project cost as a contingency fund for both Owner requested and Contractor requested change orders. This percentage is an estimate only. The actual total amount of all change orders for your project will vary based upon such
