Change is inevitable on any project but managed poorly it can lead to cost overruns and schedule delays. So while you can’t eliminate change, you need a control process–to stay on top of change order requests (CORs) and Change Orders (COs), and minimize their impact. At completion, you may need to analyze why these Change Orders happened, by reviewing their history. Change Orders can be toxic to a project if not handled skillfully.
Quickly Capture Potential Change Orders (PCOs)
With VPO, it’s simple to initiate a Change Order Request (COR) and a Request for Proposal (RFP). For instance, the Owner may request a proposal from a Contractor for a possible change. An Architect or a Construction Manager usually manage the routing process to the Contractor. With everyone on the same construction management system, the initiator of the request can complete a simple form with details, and assign a Contractor as the Ball-in-court. When this happens, an automatic e-mail notification is sent to the Contractor, providing information about the request. The Contractor reviews the request directly from their e-mail, prepares a proposal, and attaches it to the PCO and changes the Ball-in-court contact. Another automatic e-mail notification tells the Owner that the PCO has been answered. The same process can be used to manage Change Order Requests (CORs). However, the initiator is different.
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 in VPO 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 meet your budget.