Job Cost Change Orders Melissa Wood

The True Value of Change Orders ?

What this Class will Cover Different Tracking Methods Adding Change Orders Printing Change Orders Billing Change Orders Customizing Change Order Reports Reviewing Change Order Reports

1 Setup a cost code for each change order May use for large change orders Field - Must code costs to change orders Pro -Actual vs. estimated on each change order Con – Total (including COs) on “drywall?” #1 - Cost Code CO# Method Cost CodeNameOriginal Budget CO’sRevised Budget Actual Costs Variance 9010Finish Carpentry$10,000 $8,000$2, Drywall$ 8,000 $6,000$2, Tile$17,000 $10,000$7,000 CO-001Change Order #1 $69,000 $60,000$9,000 CO-002Change Order #2$91,000 $70,000$21,000

1 Would charge costs to actual cost code Would not need to code costs to change order Con – Profitability of each CO would be Illusive Pro – Actual cost of scope would be accurate Pro –Easier to track #2 – Scope of Work Method Cost CodeNameOriginal Budget Change Orders Revised Budget Actual Costs Variance 9010Finish Carpentry$10,000 $3,000$13,000$11,000$2, Drywall$ 8,000 $6,000$2, Tile$17,000 $10,000$7, Hardwood Flooring$55000 $14,000$69,000$60,000$9, Flooring & Carpet$80,500$1,000$81,500$70,000$11,500

1 Pro – Profitability by change order and cost code Con - Once turned on, it can’t be turned off!! Con – Vernacular & coding will need to change Con – May need to adjust all processes, forms and reports #3 – Using Phases as CO’s PhaseCodeNameOriginal Budget C/O’sRevised Budget CostsVariance Finish Carpentry$13,000 $11,000$2, Drywall$ 8,000 $6,000$2, Tile$17,000 $10,000$7,000 Total Phase 000$38,000 $27,000$11, Finish Carpentry $14,000 $5,000$9, Drywall$11,000 $8,000$3,000 Total Phase 001 (C/O # 1)$25,000 $13,000$12,000

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