House and Renner Construction, Inc.
Commercial No Cost Change Process
For Construction work which the owner is willing to negotiate exclusively with House and Renner Construction, Inc. We are willing to offer our Exclusive "No Cost Change Order"
We believe that changes in a construction project are inevitable. We don’t feel that the owner should be penalized for minor or miscellaneous changes which may occur during the construction process. We recognize that this may be an inconvenience to us but we are in the business of making satisfied customers.
House and Renner Construction, Inc. is willing to absorb general contractor costs* associated with these changes if the owner will establish an account** and fund up to 10% of the total contract price. We limit the amount of this contingency to 10% because we believe planning is important. We also recognize that a project can multiply in size due to a variety of reasons beyond our control and that House and Renner Construction, Inc. should be compensated for additional scope of work which may not have been considered in the original plans
In this process:
A- if the owner decides to change the flooring material in the foyer from carpet to ceramic tile and the cost of the change* is $1,500.00, the owner will use the funds in the change order account to pay the difference but House and Renner Construction, Inc. will charge no additional fee for handling this change, no mark up on materials, or subcontract labor.
B- if the owner decides, in mid project, to add a wing to his original scope of work that House and Renner Construction, Inc. should be compensated for the addition.
* It is important to identify COST and the COST OF THE CHANGE
In our process COST and COST OF THE CHANGE are identified as actual cost incurred due to the change. This may include restocking fees charged by suppliers, subcontract charges attributed to subcontractors or material suppliers but will NOT include any fees or increased revenue for House and Renner Construction, Inc.
** The ACCOUNT
House and Renner Construction, Inc. believes it is important for the owner to be prepared for contingency. Changes occur which can be beyond anyone’s control. In recognizing this we encourage the establishment of a separate additional bank account (or a loan amount which accounts for this additional amount) to be used to fund changes. Careful use of this contingency account should include use for unforeseen, unplanned items ahead of aesthetic items. Because the potentially larger unforeseen items typically happen at the earlier stages of the project, by the time finishes and other aesthetic items become important, the owner should have a very good sense of his monetary position and be able to clearly identify the significance of aesthetic changes.