There are many things that can be frustrating about redesigning or renovating an office space, but the budget nearly always tops the list. Sometimes, it isn’t the initial budget that can get out of hand but rather extra fees that come from change costs. A contractor may get behind on paperwork, exposing these costs in a surprising bundle that could be a shock to the redevelopment budget.

“The only thing worse than a change order is a change order you find out about at the eleventh hour, and this happens far too often,” Adam Felson, the founder of officemorph, tells GlobeSt.com. “Here’s an example. A contractor gets behind on his paperwork. Then, at the very end of the project, he submits a sizable change order for unforeseen plumbing relocation work that had to be done. You’re now blindsided, since this should have been discussed months earlier.

Felson says that knowing about these costs may mean that you trimmed corners in other areas to rebalance the budget. If change costs are received late, the client may be robbed of that opportunity. “Had you known about those hidden costs, perhaps you never would have splurged on high-end lighting for the break room,” he adds. “You’re now furious, because after months of careful monitoring, the project still ends up over-budget. Unless your team hears about any upcoming costs as soon as they’re on the horizon, you can’t manage the project properly. Here are some tips on change orders.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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