Change order tracking for builders
The easiest margin to lose is the change you never billed.
Short answer: To track change orders, get each one approved in writing with a price, add it to the house budget and contract price the same day, code its costs to the right cost code, record when it is billed and paid, and review a change order log every month so no approved change goes unbilled.
The log should show
- House, date and description
- Approved price and cost estimate
- Cost code affected
- Billed date and amount
- Paid date
Common leaks
- Verbal approvals that never get priced
- Changes added to cost but not to contract price
- Allowance overages not billed
- Change orders left off the lender draw
How we help
A change order log is part of every BrikBooks plan, reviewed on the monthly call.
Common questions
Should allowances be tracked like change orders?
Yes. Overages are billable changes in most contracts.
Where should change orders live?
In your project software, tied to the books.
Do you bill clients for us?
We prepare the log and support. You send the invoice.
Related
By John Mos, Founder. Updated . We do not give tax or legal advice. Please ask your CPA or attorney.
See where your margin goes, house by house.
Tell us about your homes and your books. If we are a fit, we start with a $750 Job Cost Checkup: written findings and a fixed quote in 10 business days, credited to your first month if you sign up.