4.

1
CHANGE ORDER CONTINGENCY FUND
CLIENT INFORMATION SHEET
CONTRACTORS NAME:
COMPANY NAME:
ADDRESS:
PHONE:
FAX:
E-MAIL:
LIC#:
DATE:
Dear _________________________ :
Nobody likes change orders! For you, the owner, they present a
sometimes 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.
So that you can better understand what leads to change orders, how
to budget for them, and how to minimize their occurrence, we have
included the information below and have enclosed a sample change
order form so that you can ask us any questions you may have prior
to the commencement of any work on your project.
Based on our experience with projects similar to this one, we
anticipate that change orders may arise on this project as a result of
both owner-requested upgrades of current plans (e.g., the owner
decides to change vinyl windows to wood windows or to change vinyl
flooring to tile flooring), and contractor-requested changes arising
from either concealed conditions or actual site conditions that vary
from those described in the construction drawings.
Therefore, we recommend that you initially budget approximately
_____ % 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 currently unknown
factors as:

 The number of owner-requested changes and upgrades requested

during the course of the project.
The possibility of encountering concealed conditions during the
work.
The degree of completeness and amount of detail shown in the
construction drawings and the as-built drawings.
By obtaining a complete and detailed set of construction drawings, the
owner can expect a smaller number of change orders during the
course of the project. Detailed construction drawings will include such
information as:
accurate as-built drawings;
all structural details and connections;
electrical, plumbing, and mechanical plans (including the location of
all phone and cable jacks and heat ducts);
accurate door, window, and hardware schedules;
finish plumbing and electrical fixture list;
elevations showing all details in kitchen, bathrooms, and other
rooms with cabinetry;
inclusion of any exterior concrete flat work, decks, landings,
irrigation and landscaping plans;
finish floor schedule;
appliance schedule, countertop schedule, etc.
This information should help you do a better job of budgeting for your
project and keeping unanticipated expenses to a minimum.
Sincerely,
___________________________________
CONTRACTORS NAME
___________________________________
COMPANY NAME