Change Orders in buildertrend
IMPORTANT: Do Not release change orders to clients without communicating to them prior! Explain why we are giving them a change order first. Be Nice!
Once logged into Buildertrend, hover over Jobs menu
Click the Job you would like to send a Change Order
Navigate and hover over the project management tab at the top of the page
Select Change Orders, + New
Choose a relevant title, such as “Additional Millwork” for the Change order
Choose the “Line Items” option underneath the Title
Select the Cost Code which best corresponds with the work being performed
Enter in the amount the extra work will cost J. Lane Construction in the “Unit Cost” box
Enter either a markup % or a Markup $ amount by utilizing the “Markup” Dropdown option (The client will only see the owner price, and not our markup)
If there is any additional trades being performed within this change order, click the green “Add” button to add another Line Item with a corresponding cost code
In the Change Order Description box, write a short description for the work being done for the client.(Make this as descriptive as possible because this is where we explain to the Client what is being performed in this Change Order)
Also, add in the description box, a number of days that this change order will extend the contract.
If there are any corresponding documents with this change order, add them under the “Attachments” section
Review your work and if you are ready to send to the Client, click Save and Release
Procedures
Where Change Orders Will Be Developed and Approved:
All change orders will be developed and approved in Buildertrend prior to execution.
Additional work and changes are NEVER to be performed without an associated approved change order.
Why/When Change Orders Will Be Developed:
To obtain legally binding approval from the client for changes or additional work requested.
To track any additional construction costs incurred beyond the original contract amount.
To track changes even if they have no cost associated.
To track any credits or deductions.
To track time and materials.
Who Will Develop and Approve Change Orders:
All change orders can only be released by the project manager. Approval will only be provided by either the project manager or the client.
Change orders can be created and priced by the design coordinator, superintendent, or another project manager, but only released by the project’s primary project manager after an accurate review of pricing and markup.
The project manager can also create, price, and release change orders.
If Client Approval Is Needed and the Client Is Not Tech-Savvy:
If the change order amount exceeds $5,000, it must be sent via DocuSign or signed physically.
If the change order amount is less than $5,000, approval can be via text or email with the client saying “I approve.” A screenshot of the message must be added to the change order, and the project manager must review the message or email approval before approving the change order.
Different Types of Change Orders
Client Requested Changes or Additional Work:
From the Superintendent:
The superintendent develops a change order and notifies the PM to review and release.
From the Project Manager:
The project manager notifies the superintendent and either requests the superintendent to develop and price the change order or does it themselves. The PM will review and release.
From the Design Coordinator:
The design coordinator notifies the project manager and superintendent and waits for instructions.
From Subcontractors:
Subcontractors notify the superintendent immediately and do not proceed with the work. The superintendent confirms with the client and requests a change order from the subcontractor. The superintendent transfers the information into a VINO change order with markup and notifies the PM to review and release.
From Field Staff:
Staff notify the superintendent immediately. The superintendent confirms with the client, develops a change order, and notifies the PM to review and release.
Additional Work or Changes Due to Site Conditions, Unknown Discoveries, Permitting, etc.:
The superintendent communicates the scope of work to the client immediately, notifying them that a change order will be developed and sent for approval. The change order is then developed, and the PM is notified to review and release.
Final Material or Finish Selections:
When Pricing Cannot Easily Be Cut Out of a Supplier Quote:
A change order is developed with a copy and paste of the items being provided by the design coordinator, and the cost is inputted. The quote from the supplier is uploaded without client access. The PM reviews and releases the change order.
When Pricing Can Easily Be Cut Out or Whited Out of a Quote:
A cut or whited-out version of the quote is uploaded showing only the material and quantities. The supplier's cost is inputted in Buildertrend. The description section includes "See documents attached." The PM reviews and releases the change order.
Credits or Reductions:
A change order is developed describing the reduction along with the cost, marked with a negative symbol (-). The credit is reviewed, released, and approved by the project manager.
Time and Material Tracking:
Two change orders are created: one for client approval and one for tracking time and material costs. The scope of work and rate are described in the change order for client approval. Once approved, a separate change order is created for tracking labor and materials, updated daily until the scope is completed. The project manager reviews the final change order to ensure all material and labor are accounted for before releasing and approving it.