Budgeting for Change Orders: A Conservative Approach
Budgeting for Change Orders: A Conservative Approach to Concrete Repair Projects
Change orders are a reality in nearly every concrete repair and restoration project. No matter how detailed the planning, hidden conditions and unexpected issues will surface once work begins. For condominium boards and property managers, the question isn’t if change orders will happen—it’s how to budget for them effectively.
Why Change Orders Are Inevitable
When UPE prepares a project budget, we complete a thorough structural assessment, estimate material quantities, and provide a detailed cost projection. Still, even the most precise engineering estimates can’t account for every unknown. Issues such as deteriorated concrete hidden behind finishes, corroded reinforcement, or water damage often emerge during construction.
Planning Beyond the Engineer’s Estimate
A conservative approach is essential. For example:
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If a project is estimated at $1 million, a prudent board might allocate $1.3 million to account for change orders.
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In many cases, doubling the engineer’s estimate provides a strong financial safety net.
At UPE, we’re confident that doubling our estimate would very likely ensure your association is prepared, without surprises down the road.
Turning Change Orders Into Planned Contingencies
Here’s the key insight:
When you set aside a large enough contingency, there are essentially no change orders.
You’ve already built them into the budget. This means your board won’t need to scramble to explain overruns later—the project’s financial realities have been acknowledged and addressed from the start.
Benefits of Conservative Budgeting
By planning ahead, your association can:
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Avoid confusion with residents and stakeholders
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Reduce conflict during the construction process
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Eliminate financial shock when hidden conditions are uncovered
Work With Experts Who Plan Ahead
Budgeting for change orders requires more than just numbers—it requires foresight and experience. For more than 20 years, United Professional Engineering (UPE) has guided boards and property managers across South Florida through structural restoration and milestone inspection projects with conservative, realistic budgets.
If your association is preparing for a concrete repair or restoration project, let us help you build a financial plan that keeps surprises to a minimum.
Contact UPE today to discuss your project and learn how our experienced team can guide your board with confidence. Call: (561) 582-1733
