Change is inevitable on any project, but managed poorly it can lead to cost overruns and schedule delays. With a good control process, your team will stay on top of change order requests (CORs) and Change Orders (COs), and you’ll mitigate their negative impact. At project completion you’ll be able to analyze the circumstances surrounding your Change Orders, and plan for the future by reviewing their history.
Quickly Capture Potential Change Orders (PCOs)
With VPO, it’s simple to initiate a COR and a Request for Proposal (RFP) by creating a PCO. The project Owner decides they want to receive a proposal from a Contractor for a change they’re considering making. An Architect or a Construction Manager usually manages this request’s routing process to the Contractor. Since every project participant is using the same construction management solution, the initiator of the request can simply complete a short form, giving relevant details, and assign a Contractor as the Ball-in-court. The Contractor then automatically receives an email notification providing information about the request. The Contractor reviews the request directly from their email, prepares a proposal and attaches it to the PCO, and changes the Ball-in-court contact. Another automatic email notification tells the Owner that the PCO has been answered. This same process can be used to manage CORs, just with a different participant initiating.
Manage the Change Order Process
If the Owner decides to proceed with the Change Order, they can simply status the COR to an approved Change Order in VPO, attach a formal Change Order document generated from their accounting system, and assign the Ball-in-court contact as the Contractor. This streamlined step gives automatic notification to the Contractor to begin work on the revised plan. The Contractor can automatically notify their Subcontractors of the Change Order in just the same way so that everyone is working to the same scope. And at every step, you’ll have full documentation and an audit trail with date and timestamp data.
Control the Budget
With VPO, you can track both approved Change Orders and Pending Change Orders against your contracts, and use this information to forecast the revised budget. If a cost overrun is detected, you’ll be able to resolve it to maintain your budget.