Simplify Construction Change Orders with Intelligent Software
Keep owners, contractors, and subcontractors up to date on project changes.
Create, organize, and track change orders as they happen—and integrate with your ERP solution to send change orders directly to accounting.
There are four subsections in ProjectSight for change orders: change order requests, potential change orders, prime change orders, and subcontractor change orders. This lets you work with relevant information and the proper scope for each type of change—for example, adding a room to a building will involve multiple parties, but adding an extra light switch only applies to the electrician.
Each change order subsection in ProjectSight offers features that streamline the process:
Alert Everyone to the Problem
You can submit change order requests as the general contractor or the owner. These requests can be labeled by category and include the required date of response, the requested days for work, the requested date of completion, and the work start date, allowing for detailed planning before orders are finalized.
Explain the Situation
In potential change orders, you can give reasons for the proposed change, share the start dates, and designate the amendment’s importance to the project. You can also assign the change order to subcontractors or individual users to make sure the information gets to the right person.
Direct the Change
Once approved, link prime contract change orders to potential change orders to assure changes are applied to the overall budget—and to keep legal documentation on track.
Implement on the Ground
Manage subcontractor change orders individually to avoid miscommunication and allow access to needed documents such as field tickets for time and materials and quotes for assessing related costs. This section also lets users note whether or not each change is applied to the overall budget, allowing owners and project managers to see how much it will impact the total cost.
Integrate with Accounting
Connect ProjectSight with your organization’s ERP to seamlessly connect operations with financials. Send change orders to the accounting system automatically, reducing the risk of payment oversights.
A change order in construction (also known as a variation order or VO) is an amendment to the project’s scope of work that will affect the budget.
Almost any unforeseen challenge can affect the budget and lead to a change order. Some of the most common are inaccurate specifications in the original design, workers or materials that don’t arrive on time, and ambiguous blueprints.
- Potential change orders are proposals to change a project’s scope of work. They have not yet been approved and are under review by owners, contractors, and subcontractors.
- Prime contract change orders are change orders that have gone through the approval process. They are created when the budget is secured for the changes.
- Subcontractor change orders are specific versions of prime contract orders that apply only to a particular area. For example, a prime contract change order adds an extra bathroom to a building, prompting three subcontractor change orders to go out to the plumber, roofer, and electrician.
A construction contract sets the terms and scope of work for a construction project. Typically, a good construction contract includes a detailed description of the project, the scope of work to be performed, a schedule with completion date, and cost estimate with payment schedule. The budget might be more rigid or more flexible depending on the type of project delivery method.
Change orders are amendments to the legal contract between owners and contractors and must be handled as such. Just as with the original contract, stakeholders must agree on all terms for the change order to be valid. That’s why clear and timely communication is so important. To reach approval, the amended contract must be signed by all parties involved.
Yes. In most cases, project managers generate change orders that describe the changes, distribute the document, and gather the needed signatures.