Change Order Template

Change orders are an essential component of construction project management, often necessitated by unforeseen conditions or client requests. According to industry research, approximately 35% of construction projects encounter at least one major change throughout their lifecycle. The average number of change orders can range from 1.7 for smaller projects to 11.18 for larger ones. These changes can significantly impact project costs, with cost overruns typically falling between 4% and 5%, though they can sometimes reach up to 15%.

Mismanagement of change orders is a leading cause of project delays and cost overruns, with McKinsey noting that 98% of megaprojects face such issues. This highlights the importance of managing change orders effectively. While Harvest does not provide a dedicated change order form, it supports contractors by tracking the financial impacts of these changes on project budgets and timelines. This allows businesses to maintain oversight and control over project finances as changes occur.

A well-structured change order template is crucial for documenting project modifications. Essential fields often include project identification, detailed descriptions of the changes, cost breakdowns, timeline impacts, and space for all necessary signatures. However, a common challenge is the reliance on verbal agreements which can lead to disputes and financial discrepancies.

While Harvest does not provide standardized change order templates, it offers robust tools for tracking project budgets and expenses, which are critical in managing the financial impact of changes. By integrating time and expense tracking, Harvest helps contractors ensure accuracy in their financial documentation, thereby reducing the risk of errors and disputes associated with change orders.

Effective change order management involves a clear and proactive approach. It is recommended to submit change orders promptly after identifying the need, ideally before any related work begins. This helps prevent delays and ensures that all parties are aligned on the changes. Experts suggest documenting every change, no matter how small, to avoid potential disputes later.

Harvest can play a crucial role in this process by helping track the impact of change orders on project timelines and budgets. By maintaining accurate records of time and expenses, Harvest supports contractors in effectively managing project changes and maintaining transparency with stakeholders.

Digital transformation in change order management can lead to significant efficiency gains. Digital change orders are noted to save 2 to 4 hours per change compared to traditional paper-based methods. Harvest aids in this digital approach by allowing contractors to track time and expenses digitally, thereby streamlining the documentation process.

While Harvest does not handle the creation or submission of change order forms, its ability to export data to Excel or CSV formats provides flexibility for further processing. This feature supports contractors in maintaining comprehensive records that are crucial for managing project budgets effectively.