On Planyard, depending on which language terminology you are using, the change orders (for the US users) are called variations (for the AU and UK users). See a 2-minute video here.
Change orders are a ubiquitous challenge for project managers. From tracking the agreed change orders to billing the client’s vendors and subcontractors directly affects the project’s profitability. This article will explore some common challenges associated with change orders and provide practical strategies for streamlining the process.
The Challenges of Change Order Management
- Tracking Changes: With several change orders requested by the client throughout a project, it’s easy to lose track of them, leading to missed payments and overlooked details.
- Profitability Analysis: Determining whether a change order is profitable or not can be challenging, especially when changes impact various aspects of the project, such as materials, labor, and timelines.
- Communication with Subcontractors and Suppliers: Coordinating changes with subcontractors and suppliers is crucial, but it can be time-consuming and prone to errors if not managed effectively.
- Billing the client for the change orders directly affects the project profitability.
- Analyzing if the change orders were profitable
Planyard helps you to simplify the change-orders management process
Step 1: Simple Change Order registering by opening the project budget and navigating to the project dashboard; click Add line-item => Select the « Change Orders » tab from there to enter the dedicated module.
Step 2: Reviewing and Approving Change Orders As change orders are submitted, review them for accuracy and feasibility. Communicate any approved changes to relevant stakeholders to ensure everyone is informed and on the same page.
Step 3: Generating Reports Utilize Planyard’s reporting tools to generate detailed reports on change order activity. Analyze the financial impact of change orders on project budgets and profitability. Gain insights into trends and patterns related to change order management to inform future decision-making.
Conclusion: With Planyard’s comprehensive suite of tools for managing change orders, construction professionals can streamline processes, maintain project profitability, and ensure transparent communication throughout the project lifecycle. By centralizing change order management within the platform, teams can mitigate risks, optimize resources, and deliver successful project outcomes. Embrace the power of Planyard and experience the ease of change order management like never before.