IEM - Advanced Job Management
Job Change Orders
The Change Order records changes to the original scope of the Job. Usually this means additional work, sometimes less. Anyway the difference between the original scope and the changes has to be clear in the Job's reporting. Still the change must become part of the contract. Common causes for change orders to be created are:
- The Job's work was incorrectly estimated
- The customer or project team discovers obstacles or possible efficiencies that require them to deviate from the original plan
- The customer or project team are inefficient or incapable of completing their required deliverables within budget, and additional money, time, or resources must be added to the project
- During the course of the Job, additional features or options are perceived and requested.
- If the contractor has to add work items to the original scope of work at a later time in order to achieve the customer's demands, a fair price for the work items and fees must be added for the materials and labor.
- Extreme weather conditions cause delays or require additional work to complete construction.
In all these situations it is important that customer and contractor agree on the change so the functionality around change orders involves the following steps:
- Estimating the costs of the change in the different cost types: Resources, Material, Expenses and Equipment.
- Requesting an approval through the Sales Person responsible for the Job and/or the Person Responsible for the Job, usually the project manager.
- Embedding the change in the Job as a separate task but linked to the Element and / or Activity work breakdown structures.
| To | See |
|---|---|
| Learn how to create a Change Order | Change Order |
| Learn how to create a Job Task from a Change Order | Job Task |
| Learn about the Change Order Lifecycle | Lifecycle |