Change orders are one of the challenging aspects of construction projects. No construction PMO will ever say that they love to change orders. It is basically an alternation of work after the project is completed, which include:
Deviation of the cost from the original project
And sadly, this cannot be avoided because it is defined through an agreement and both the parties agree to the terms and conditions. Many construction professionals use spreadsheets for managing change orders. This leads to inefficiencies, creating data silos and blockages, resulting in errors. When you manage one project on different systems with different perspectives, difficulties occur.
Without a robust system, tracking and reporting, irregular paper workflows create profit fade and pose a hindrance to scaling your business. This is where ProjectPro comes into action.
A well-structured construction accounting software powered by Microsoft Dynamics Business Central. It helps you automate the change order process using data from master job orders. Now stay ahead of your change order process with ProjectPro and attain your project goals smartly.
10 Ways ProjectPro can Help you Streamline Change Order Process without Using Excel Sheets:
As we know change orders can significantly impact a construction project’s profitability and costs, all the parties involved must follow a standardized change order process and not ignore any step.
1. Adopt a Standard Process or Template for Better Consistency
At ProjectPro, we provide you with change order templates for managing inventory, bid items, supporting documents and specification of the change. This template enables you to keep track of material and resources smartly.
Such a standard template and process help you to streamline the entire process for your staff. No matter if you hire a new team, training them on the change order process will be hassle-free for you.
2. Communicate with Stakeholders
Now interact with the project owner, subcontractor and contractor to discuss the change before you document it on your system. ProjectPro gives you the ability to establish strong communication within your team and clients. This platform strives hard to reach an agreement on how change will affect the cost and schedule.
3. Make Sure you Define the Change
With a change order template, you can summarize the terms of the agreement. You can include details such as what needs to be changed, modification in material or technique, the reason for change and new specification that you wish to add. In this way, you can understand the unique requirements of your stakeholders and come to common terms.
4. Describe the Impact on the Budget and Schedule
Ensure that the document indeed communicates any change in cost and time that the change will need. Furthermore, demonstrate how the change will impact the project’s overall cost and timeline. If there is no change in either the former or the latter variety, make that evident.
5. Present the Agreed Terms to the Other Party
If you agreed with the terms of the change, you can present it to the other party and formalize the change order document. ProjectPro makes sure that all the details are included meticulously and nothing is overlooked by you.
6. Negotiation becomes Easier
Negotiations are crucial if the parties have not yet agreed on how the change will transform into days and dollars. These conversations may involve finance executives, senior project managers, and construction lawyers. If you are still not able to agree, the contractor may have to resume the work while securing the right to seek compensation at the project’s final walkthrough.
7. Finalize the Agreement
Once you’ve agreed, ensure that the change order document precisely showcases the final deal and secure the change by having each party sign the document. However, if you cannot reach a consensus, you must perform the work if the contract language comprises such a mandate.
8. Monitor the Impact on the Project
Modify the overall project schedule as required and ensure that you update all dependencies (other work that cannot begin until the change order-related job finishes) and specify any conflicts.
9. Share Made Simpler
Communicate details of the change with all the project parties, including the crew foreman, field managers, and subcontractors.
10. Maintain Records
Maintain all documentation and preserve construction change order log for arguments, invoices/payments, or audits. It may require you to save these records for a while. You can find a template for creating contractor progress reports, tracking construction documentation, and much more.