How do you Manage Change Order?
BuildSpace
JANUARY 2023 - VOLUME 14
Greetings and well wishes for a prosperous New Year!
We are back to business after the holidays, and many of us wonder how the economy will affect the construction industry in the months ahead.
The good news is we ended the year on a good note. Last month, the Associated Builders and Contractors reported that the Construction Backlog Indicator has been at its highest since early 2019.
But even a backlog of work doesn’t guarantee a profitable year–especially with so much uncertainty.
- Will material prices hold steady?
- Do you have enough skilled workers?
- What’s going to change in the contracts you have?
In any case, a transparent change order process is critical to keeping projects moving. The Arcadis 2022 Global Construction Disputes report cites “poorly drafted or incomplete and unsubstantiated claims” as the leading cause of construction disputes.
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The key to any successful change order process lies in four critical elements: Clarity, Accountability, Verification, and Execution. C.A.V.E.
Clarity
The simpler your system, the easier it is to follow. Use standardized forms and a clear, established workflow to process every change request. No exceptions. Automated workflows in Linarc make it easy to follow the process. Linarc’s built-in cost compiler can gather cost & time impact across all contractors. You can also add markups, documents, and photos to change orders.
Accountability
A transparent process holds stakeholders accountable, and tracking ensures prompt follow-up to speed things along. The collaboration feature in Linarc’s workflow platform keeps the conversation moving and provides a fast, effective way to exchange critical feedback, preventing delays.
Verification
After meeting the required standards, you can send the change order for approval signature. The in-built document signature lets you get the change order signed from the project sponsors. This keeps approval documentation within Linarc. Once approved, Linarc’s auto-update feature adjusts the project budget. Now you’re ready to schedule and assign the work.
Execution
The final step in the process is where it all comes together. With the change order added to the budget, the work is ready to be scheduled. The nice thing about the Linarc system is that it automatically documents work progress in the schedule.
That means faster payment for you and your subcontractors, with zero paperwork and hassle.
Start with the end in mind
So, as you look ahead to 2023, consider how an intelligent change order management process can help you squeeze every ounce of profit and productivity out of your project portfolio.
We built Linarc to solve your most pressing problems with automation and technology.
How can we help you in 2023?
