We do not do change orders. Unexpected repairs will need to come out of the client’s own pocket or contractor’s contingency. If Cogo holds a contingency and the contractors needs to use that, the contractor needs to write a statement to the lender as to why they need to access those funds. It will be up to the lender to say yes or no of releasing those funds.
We do not do change orders!
You and your contractor need to think about the unexpected cost that always comes up in renovating that might happen. Make sure to have a contractors contingence set aside for those unexpected cost and do not count on change orders.
Reasons for change orders
- Haste or inadequate planning in preparing the initial contract.
- A poorly defined scope of work.
- Compressed project schedules.
- Unrealistic cost constraints.
- Time and material changes; and
- Owner-directed acceleration.
In my experience, contractors just want the bid, so they don’t put in that contractor’s contingence which in turn, hurts our clients in the long run. So, if you are getting multiple bids and a bid is higher because of a contingency, I would go with that contractor because they know the reality of rehab.