Whether or not you finance the construction of your next investment property or pay cash as you go, both you and your builder need to be on the same financial page. While your building plans have been carefully drawn out with your architect and your builder has reviewed them several times to arrivechange order costs at a cost to construct, there will be changes during the process.

It’s almost impossible to avoid changing the building plans midstream but when they do occur know well in advance the implications of a change order.

Your builder will include a contingency fund to allay future changes but as the construction progresses there can be unexpected events that cause a change in plans. And that costs both in terms of cost as well as time. The builder may claim that the building details weren’t adequate for a particular part of the project or the plans left out additional details that required more work or materials.

Architects aren’t builders and builders aren’t architects and they both rely on one another to complete the project. Sometimes drawings will indicate a particular structure that the builder knows can never happen based upon personal experience.

The blame can be shifted to the architect or the builder but it’s you and the building contract that will spell out who pays for what but eventually it could be your responsibility.

Other times, there are simply surprises. The soil test result comes back to indicate the lot will not handle the structure or will shift under considerable weight. More materials might be required to alleviate this issue. Other surprises occur when the cost of materials suddenly rises due to a supply shortage. An extended increase in the price of oil can affect the price of roofing supplies for instance.

Oh, and you want to change the rooms around a bit after framing? The builder will be happy to quote you the new price, thank you. Just be prepared for change orders and be confident in our plans and specs at the outset. You, your builder and architect should all understand who will be responsible for any changes that can occur during the build.