Understanding Change Orders

Overview

Buildwise Change Orders in Buildwise help you document modifications or alterations to the original approved estimate. Like estimates, change orders are associated with a project, and you can easily share them with clients to get approval. 

Note: Change order costs are applied to your project reporting only after the status is changed to Client Approved or Manually Approved. 

With the Buildwise Change Order Builder, you can:

• Identify Cost Items as Materials, Labor, or Trade Partners 
• Quickly view estimated Hours, Total Cost, and Margin
• Customize change orders by indicating which data lines represent allowances and which data lines you want the client to view in your proposal
• Save time by copying existing change orders to new projects
• Get digital signatures for change order approvals

This article covers how change orders are organized, steps to getting an approved change order, and viewing the Change Order dashboard: 

• How Change Orders Are Organized: Cost Groups, Cost Sections, and Cost Items
• Steps to Getting an Approved Change Order
• Dashboard Views
• Project Reporting

How Change Orders Are Organized

Like estimates, the Buildwise Change Order Builder is organized by Cost Groups, Cost Sections (optional), and Cost Items.

Cost Groups, Cost Sections, and Cost Items

• Cost Groups – Are the overarching step or phase of the project, such as Demolition, Framing, and Drywall. Each Cost Group contains Cost Items that are specific to that step or phase.
• Cost Sections (optional) – While Cost Sections are optional, they allow you to group a specific scope of the overall project, helping you organize large projects. Cost Sections are added to a Cost Group.
• Cost Items – Cost Items are assigned to a Cost Group and are unique to that Cost Group.
  • COGs for Materials, Labor, or Trade Partners are tracked within the Cost Item.

Example: The Change Order Builder below shows a cost group of Interior Doors & Trim with two cost sections, First Floor and Second Floor, and their associated cost items nested within them. 

Steps to Getting an Approved Change Order

1. Create a Change Order within a project. 
2. Add Cost Groups, Cost Sections, and Cost Items as needed.
3. Using the Change Order Builder, enter the Scope of Work Summary, and your Terms and Conditions
4. When you’re ready, Share By Email with your client and get a digital approval signature. 

Dashboard Views

You can view change orders details in multiple locations:

• Change Orders Dashboard
• Project Change Order
• Project Reporting

Change Orders Dashboard

Change orders for all of your projects can be viewed on the Change Orders dashboard or the Project Change Orders dashboard, where you can filter the view. Change orders are listed in descending order by Date, with the most recent change order listed first. For more details, refer to the article Find and View a Change Order. 

Project Change Order 

When you create a change order for a project, it is displayed on a change order page within the project. See highlights below. 

1. Breadcrumbs show the project that contains the change order. 
2. Change Order Name 
3. Tabs across the top of the dashboard provide quick-and-easy access to the SOW view and the Proposal Builder on the Share tab.  
4. Change order header remains fixed while you scroll through data lines. You can collapse all Cost Groups and Sections to easily review a large amount of data lines. 
5. Cost Groups contain multiple Cost Sections (optional) and Cost Items. Subtotals are rolled up by Cost Sections (if used) and Cost Groups. Refer to How Change Orders Are Organized.
6. Summary shows totals of all COGs, the total hours, expected Margin %, and overall total cost; remains fixed at the bottom of the dashboard.
7. Allowance and Client checkboxes allow you customize how you want to set up your change order and how you want clients to view the proposal. Refer to the articles Create a Change Order and Share a Change Order.
8. Change orders are automatically locked when they are released or manually/client-approved. You can also manually lock or unlock the change order, provided there are no expenses in the project.
9. The Status can be automatically or manually updated.
10. If necessary, you can Delete the change order. 

Project Reporting

After a change order is Client Approved or Manually Approved, costs can be viewed in the project reports:

• Cost to Completion tab
• Job Costing – Change order costs are summed to Original Estimate amounts and visible in the Labor Estimate column)
• Labor hours are summed to the Original Estimate amounts and visible in the Hours Est. column
• Client Summary tab – Cost-plus projects only

Cost to Completion Tab 

Client Summary Tab

Change order costs for Cost Plus projects are also displayed on the Client Summary tab.