In a tenant improvement project, what do you call options that increase the scope of work and also typically the cost?

Study for the BOMA Foundations Exam. Enhance your skills with flashcards and multiple choice questions. Each question comes with hints and explanations to help you get confident for your test!

In a tenant improvement project, options that increase the scope of work and often lead to higher costs are referred to as add alternates. These are additional items or upgrades that a tenant may choose to incorporate into their space, beyond the initial specifications of the project. Usually outlined in the bidding documents, add alternates allow flexibility in decision-making based on budget and needs after reviewing the base bid.

Add alternates provide an opportunity for property owners or tenants to enhance the project beyond the original design while still considering cost constraints. When a tenant selects an add alternate, it expands the project scope which often results in increased expenses due to the additional materials or labor required.

In contrast, change orders typically pertain to modifications made to the contract after the execution, often due to unforeseen circumstances or changes in the project's direction rather than pre-planned enhancements. Cost overruns refer to situations where actual costs exceed the budget, which isn't specifically about choices made to expand the project scope. Scope adjustments might suggest alterations made to the project but do not necessarily indicate additional options chosen at the outset. Thus, add alternates are the correct term for options that increase both the work and the associated costs in a tenant improvement project.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy