Contract Change Orders - Overview
Updated
Suggested Prior Reading
Contracts List – Layout and Navigation
Contract Change Orders
Change Orders are created to manage changes to the Contract after it has been Approved. Once Approved, Contracts can not be changed, so Change Orders are used instead.
Change Orders can be created for Contracts that have been Approved or are Complete (see Contracts – Status for more information).
Change Requests may be used to receive preliminary approval of a change (see Change Requests - Overview), then Change Orders are created to execute the change. If Change Requests are used, the Schedule of Values for the Change Orders can be automatically created from the Line Items on the Change Request Schedule of Values.
The life cycle of the Change Order is then tracked and managed via Statuses.
There are two different ways Change Orders can be viewed and maintained from the Contracts List:
- Via a list of all Change Orders for all Contracts for the Project
- Via an individual Contract which displays only the Change Orders that are specific to that Contract
From either place, the Change Orders can be viewed and then edited, emailed, exported or deleted as required.
However, Change Orders can only be added from the individual Contract.
Schedule Of Values
The Contract Change Order includes the General Change Order information as well as the Schedule of Values.
The Schedule of Values defines in detail what the scope of work is for the Change Order along with the amounts to be charged for that work.
The scope of work will be documented in detail as individual Line Items on the Change Order Schedule of Values.
A Tax Code can be set for each line item, to automatically calculate taxes as well.
Financial Markups
Financial Markups can be set to automatically apply to line items on the Schedule of Values. These can also be used to setup taxes (if not one standard tax rate is applied).
Sub Jobs
Sub Jobs can be turned on for a project and then the Line Items on the Schedule of Values can be assigned to the Parent Job or the Sub Jobs.
Automatically setup on Budgets
Depending on the status of the Contract Change Order, The Contract Change Order total amount (Grand Total) including taxes and financial markups automatically appears on the Budget to show the revenue/funding for the project.
Depending on the status of the Contract Change Order, the Contract Totals may appear in different columns on the Budget. See Contract Change Orders – Budget for more information.
Note* Although Payments can be tracked for Invoices for Contract Change Orders, the management of the receipt of payment for Change Orders is done through the Accounting System (i.e. such as when its due, overdue etc.)
Contract Change Order Status
There are pre-defined status (including Approved and Complete) that can be assigned to Contract Change Orders to manage the life cycle of the Change Order. The Status can also be used to filter and report on Contract Change Orders. In addition, some functionality can only be performed for those Contract Change Orders in certain statuses. See Contracts Change Order – Status for more information.
Contract Change Orders PDFs and Emailing
A PDF can be created with all the Contract information (either with or without detailed markup information). Optionally the PDF can be emailed to Project Contacts as required.
Sync to ERP
If it is an approved Contract and if the option to sync to the ERP is enabled, there will be a button to sync to the ERP system.
Other Functions
Change Orders
Change Orders may also be created for Contracts and tracked and managed. Change Orders detail the actual changes in scope to the project and once approved, these will be executed, invoiced and paid.
Change Requests
Change Requests can also be created for Contracts and tracked and managed. These are higher level Change Requests to the Client/Owner, for pre-approval before creating the actual Change Order(s).
Invoices and Payments
Invoice(s) can be created for the Contract and/or Change Order (from the Schedule of Value line items) and sent to Client/Owner.
Payments from the Client/Owner can be tracked.
This is viewable by the Project Manager to manage the overall financial picture.
Reporting
There are various ways Contracts can be reported on:
- Via the Project Contracts List (see Contracts List - Overview) and Exporting.
- Via the Project Reports - to report on Contracts for the specific project
- Via the System Reports - to report on all Contracts across all Projects (see Reports).
Next Steps
- To view and manage a list of all Change Orders for all Contracts for the Project, see Contracts - List of All Change Orders - Overview.
- To add, view and manage only the Change Orders specific to an individual Contract, see Contract Specific Change Orders List - Overview.
