Change Orders in Construction Projects

Under what condition is Investor Member consent NOT required for change orders on approved project plans?

What is the maximum aggregate amount of change orders permitted without Investor Member consent, assuming all other conditions are met?

How would a change order impacting construction materials, but under $50,000, be handled?

If multiple change orders cumulatively extend the project completion date by 45 days, what action is required?

A $40,000 change order and a $20,000 change order have already been approved. What is the maximum additional amount for a change order that can be approved without Investor Member consent, assuming all other conditions are met?

Which scenario necessitates obtaining consent from the Investor Member for change orders?

What aspect of the Plans and Specifications is most protected against alterations without the Investor Member's explicit approval?

Which change order would always require Investor Member consent?

How does the need for Investor Member approval shift as the cumulative value of change orders approaches $150,000?

In the context of the Project Property, what constitutes a 'material diminishment'?

What happens if a change order, permissible under the financial thresholds, inadvertently causes a material diminishment?

A change order alters the Construction Completion date. How is the permissible delay calculated for the purpose of needing Investor consent?

Assuming the conditions are met to proceed without Investor Member consent, who is responsible for determining whether a proposed change order constitutes a 'material diminishment'?

Which of the following does NOT influence the necessity for Investor Member consent on project change orders?

What is the likely intended purpose of requiring Investor Member consent for significant project changes?

What is a potential consequence of neglecting to obtain Investor Member consent when required?

In the long run, what benefit does the Investor Member derive from maintaining control over substantial project change orders?

Why would a project include a clause specifying the limits on change orders without Investor Member consent?

Under what circumstances could a change order exceeding $50,000 NOT require direct Investor Member approval?

Considering typical real estate development risks, which risk is best mitigated by the change order consent clause?

A change order involves substituting a specified brand of appliance with a functionally equivalent but lesser-known brand. How would this be assessed?

A project is nearing completion, with only minor landscaping left. A late change order proposes a significant alteration to the entrance design, costing $45,000. Prior changes totaled $140,000. How should this be handled?

After several change orders, costs have increased, but the Construction Completion date is still on schedule. Which aspect still warrants careful evaluation regarding Investor Member consent?

Insanely Difficult: A change order is proposed that would reduce long-term maintenance costs significantly but requires using a novel construction technique not originally specified, and increases the risk of a 6-month delay should the technique fail after 2 years of installation. The cost is $35,000, and cumulative changes are at $120,000. How would this be analyzed?

Insanely Difficult: Imagine a scenario where a local ordinance mandates a specific fire-resistant material that wasn't in the original plans but enhances safety beyond initial specifications, raising costs by $60,000 but is offset via savings in another part of the plan to be $30,000. Cumulative costs are initially at $140,000, making cumulative costs at $170,000 now. The new material extends project completion initially by only a week, then by another 3 weeks due to the increased cumulative costs. Is Investor Member consent needed?

Change Orders

Construction Completion Date

Change Order Approval

Individual Change Limit

Material Diminishment

Completion Delay Limit