How to Submit a Change Order

We all know that during renovation projects, there are typically UNFORESEEN items that are not included in the scope of work. These items require a Change Order to be included in the approved payments. We also know that Clients Request Upgrades or Additional Work that is not on the original scope of work. These changes also require a Change Order.

There is a very specific set of instructions that must be followed when requesting a change order. NO WORRIES this is all covered in the Free Training and can be done from the App or via email. Our goal is to make it easy to request and get a change order approved. Then make it easy to submit for the change order draw request.

MAKEOVER gives you the step by step INSTRUCTIONS to make it easy on you and the client.

How to Request A Draw Inspection from the Renovation Consultant

As a contractor, we understand that getting paid for completed work is high on your list of things to do. That is why we made requesting a draw fast & easy. We have a few different ways to request a draw and all of them are designed to make it EASY ON YOU the contractor.

One way is to simply use the App. Fill out the draw request details and hit submit. Another way is to reply to the automated text our system sends out asking if you need a draw. This works much the same as the app but can be done from your phone or tablet. Don't like either of those, NO WORRIES, our Renovation Consultants are trained to submit draw requests ON ALL ITEMS THEY CAN. We must be able to SHOW PROOF OF COMPLETED WORK. Our goal is to include as much completed work as possible in each draw to keep the cash coming.

A PAID CONTRACTOR IS A HAPPY CONTRACTOR.

Reserve Funds explained

Most MAKEOVER projects have built-in Reserve Funds in their project budget. The lender typically makes the borrower, borrow and additional 10% to 20% of the bid amount to be held in a RESERVES escrow account.

These funds are put into escrow in addition to the Bid Funds. The lender knows that during renovations there are often unforeseen costs that are not included in the bid.

To protect the lender and the client from running short on funds the lender requires a reserve escrow. However, if the client can show proof that they have enough liquid cash to cover the required reserves, the client can deposit those funds in escrow and not include them in the loan amount. If these reserve funds are NOT used, they pay down the principal balance of the loan, but do NOT change the borrowers payment amount.

These funds can be accessed using an APPROVED CHANGE ORDER.

What can Reserve Funds be used for?

Reserve Funds can be used for Health & Safety issues and true unforeseen costs that could not be accounted for during the Bid / Estimating process. Reserve Funds can also be used for UPGRADES & ADDITIONAL WORK, but only AFTER all Health & Safety issues and unforeseen items have been addressed.

When a change order is requested, the Renovation Consultant will recommend it be Approved, Denied, or be Put On hold. If the request is for required items to complete the project and are a truly unforeseen cost or a health and safety issue, the Consultant will recommend APPROVAL. If the requested item is not allowed due to the loan type (for example a Hot Tub when using an FHA loan) the Consultant will Deny the request. If the request is for an UPGRADE such as switching from Formica Countertops to Granite tops, the Consultant may put it ON HOLD until they are confident that all unforeseen and health & safety issues have been addressed. At that time they can recommend the ON HOLD change order be APPROVED.