Capture Changes in Scope and Cost

Capture Changes in Scope and Cost

Megan Sullivan

Change Orders are an integral part of the custom building and remodeling experience.  No matter how much planning you do at the start

  1. Capture the original project scope
  2. Communicate with clients on changes
  3. Update selections and budget to reflect changes
  4. Solicit approval from your clients
  5. Communicate with trades and your team on approved updates

 

Capture the Original Project Scope

The first step to efficiently manage changes and approvals within CoConstruct is to enter your project's original scope.  If you're looking to estimate and job cost through CoConstruct, you'll want to start there.  

If you're managing your financials completely outside of CoConstruct, you can still utilize the Specs & Selections to capture your scope and ongoing changes.

 

Communicate with Clients

As the project progresses, you'll have many conversations with clients regarding their selections and changes.  It's important to capture these conversations within CoConstruct to keep everyone on the same page and have accurate records to fall back on.

There are numerous places within CoConstruct to communicate so that your conversations stay organized and relevant to the item on hand.  Since they represent the scope of the project, any conversations related to change orders and variations should happen within the Specs & Selections.

 

Update Selections and Budget to Reflect Changes

When you set up your original project scope, you likely had items set up as Selections for your clients to make choices on.  These may have been items where you provided a budgeted allowance or standard upgrade packages you offer.

As you communicate with your clients on their selections and scope changes, you'll want to update the project Specs & Selections page to reflect the new information and cost.  This keeps your team, trades and clients all on the same page with where the project stands from both a production and financial standpoint.

After communicating with your clients on the updates they're looking for, you'll want to request updated quotes from your vendors and subcontractors to ensure that the pricing your clients are authorizing is complete and correct.

  • Step #1 - Reference the common Selection scenarios and how best to set them up
  • Step #2 - Request bids for the updated options
  • Step #3 - Update the option budgets and have the client approve the selections

 

Solicit Approval from your Clients

Once the pricing has been confirmed by your vendors and presented and accepted by your clients, you'll want to process a Change Order as a final approval by the clients.  Change orders capture not only the approval of updated costs but the full scope of the change by bringing the Selection data directly into the approval documents.

Issuing and getting approval from your clients through the Change Orders provides a solid record of their selections and helps to prevent surprises or objections later down the road.

 

Communicate with Trades and your Team on Changes

Once the client's approval has been received, you'll want to update your trades and team on the changes as well to ensure the right actions get carried out in the field.

 

By adopting the process above to capture changes in your scope of work, you'll be on track to improve the overall job process by keeping all parties on the same page.