Change work orders are an inevitable part of the jobsite process. They arise due to unforeseen conditions, design modifications, or changes in scope requested by clients. However, managing these change orders effectively is crucial to maintaining project timelines, budgets, and overall success.

Rhumbix Time & Materials (T&M) makes it easier for contractors to manage change requests efficiently and transparently. This effective solution streamlines the process and helps contractors keep track of changes and costs.

The Challenge of Change Work Orders

Change work orders, such as out-of-scope work, are a major source of stress and financial strain in construction projects. Industry research shows that change requests can make up 5-10% of a project’s total cost. Poor management of these changes can cause disagreements, delays, and exceeding the budget.

One major issue with unexpected work is determining the additional costs and time needed. This can cause delays and budget overruns. Carefully assessing the impact of any changes to the original plan is important. This will help manage resources effectively and avoid surprises.

Handling change requests using paper forms and manual input can lead to errors and disagreements between contractors and clients. This outdated method often results in misunderstandings and conflicts.

Upgrading the process can improve communication and reduce the likelihood of disputes. Switching to digital tools such as Rhumbix can streamline the process and ensure accuracy in change orders.

The Benefits of Rhumbix Time & Materials

Rhumbix T&M is designed to simplify and enhance the process of managing change work in construction projects. Here’s how it can make a difference:

1. Real-Time Data Capture: Rhumbix T&M allows field workers to capture real-time data using mobile devices. This ensures that we accurately record all information regarding out-of-scope work in real-time, including hours worked, materials used, and equipment used.
2. Capturing data in real-time helps reduce errors and improve understanding of change order impacts. This means we minimize mistakes and clearly understand the effects of change work orders.
3. Transparency and Accountability: With Rhumbix T&M, contractors can create detailed reports outlining each order’s specifics. These reports include time-stamped entries and photos, providing transparency and accountability. Clients can easily view the work done, the timing, and the costs involved, which helps prevent disagreements and build trust.
4. Seamless Integration: Rhumbix T&M integrates seamlessly with other construction management software, such as QuickBooks, Procore, and Viewpoint. This integration ensures that all financial data is synced, so you don’t have to enter the same data twice, and there are fewer errors.
5. Rhumbix T&M makes things easier using digital change requests instead of paper forms and manual data entry, which speeds up the process and frees up valuable time project leads and field workers to get things done.
6. Enhanced Communication: Rhumbix T&M facilitates better communication between the field and the office. Project managers can quickly access field data to make crucial decisions on projects.

Industry Research

Contractors must understand the impact of change orders and the best management practices. Here are some key insights from industry research:

1. Cost Impact: According to research sources, change requests can add an average of 8-14% to the total project cost. This highlights the importance of accurately tracking and managing these changes to avoid significant budget overruns.
2. A Dodge Data & Analytics study showed that 35% of construction projects have at least one significant change order. This underscores the need for a robust system to handle these changes effectively.
3. According to the Construction Industry Institute (CII), disputes in construction projects often arise from change orders. Using Rhumbix T&M for change orders can reduce disputes by providing clear documentation and accountability.
4. Research shows that poorly managed change requests can reduce productivity by 15-20%, according to the Project Management Institute (PMI). Contractors can reduce disruptions and maintain productivity by using Rhumbix T&M.

Best Practices for Managing Change Work Orders

To further enhance the effectiveness of managing change requests, contractors should consider the following best practices:

1. Establish Clear Protocols: Before starting a project, establish clear protocols for handling change orders. This includes defining the process for submitting, reviewing, and approving change orders and setting expectations for documentation and communication.
2. Document all work, explaining the reason for the change, how it will affect the project, and the costs involved. Use Rhumbix T&M to capture this information in real time and maintain detailed records.
3. Communicate with Stakeholders: Inform all stakeholders about change work orders and their impact on the project. Regularly update clients, subcontractors, and team members to ensure everyone is on the same page and understands.
4. Review and Analyze: The change work orders are reviewed to identify patterns or recurring issues. This can help you address underlying problems and improve the overall management of change orders in future projects.
5. Leverage Technology: Use tools like Rhumbix T&M to streamline the change work order process. Technology can help you capture accurate data, enhance communication, and improve efficiency, ultimately leading to better project outcomes.

Conclusion

Managing change requests is crucial for the success of construction projects. With Rhumbix Time & Materials, contractors can streamline the process, enhance transparency, and better control project costs and timelines. By adopting best practices and leveraging technology, contractors can reduce the impact of change orders for smoother projects.

For more information on how Rhumbix T&M can help you manage change requests more effectively, visit Rhumbix Time & Materials.