A change order is an amendment to a contract or agreement that has already been fully executed. The change order can be an add or deduct and will amend the contract time and/or cost. Change orders can be lump sum, time and materials, or NTE (Not to Exceed) with OH&P (overhead and profit) built in. Best practice is to have some documentation to back-up the need for the change and to justify cost.
The change order should be fully executed before work commences to avoid disagreements. No cost change to scope or time is a directive and should not be confused with a legal binding change order.
In Projectmates, once a contract has been approved, external contractors will be able to see and access their contract and can create change orders. Optionally, contractors will be able to link on or more approved potential change Orders (PCOs) to the new change order. If the contract is linked to the budget, change order values will be tracked in column L, typically referred to as Pending COs, once submitted for approval. Once approved, the approved change orders will be tracked in column J, typically labelled Approved COs. The contractor will only be able submit an invoice for approved change orders.
To view Change Orders
1. Open the project by clicking its name from the My Projects screen.
2. From the Cost Tracking menu, click the Commitments/COs or Contracts/COs left side menu to expand it.
3. Click the All Change Orders link in the left-side menu.