Streamline Change Order Management with a Simple Project System
Table of Contents
- Overview of Potential Change Orders
- Importance of Tracking Potential Change Orders
- Setting Up the PCO System
- Creating PCO Folders
- PCO Workbook
- Contractor PCO Log
- Owner PCO Log
- Tracking Owner-Related PCOs
- Providing Client Summary
- Subcontractor Change Order Log
- Process for Creating a Potential Change Order
- Tracking Costs and Information
- Internal Company Costs
- Owner Costs
- Creating PCO Folder and Saving Related Items
- Benefits of the PCO System
- Success Stories with the PCO System
- Preparing and Creating Change Order Requests
- Conclusion
📋 Overview of Potential Change Orders
Potential change orders (PCOs) are issues that may arise during a project and result in a change order. These can include changes in design, client requests, unforeseen conditions, or scope gaps/double ups. Tracking and managing PCOs is crucial for project control and customer confidence. This tutorial will guide you through the step-by-step process of effectively managing PCOs using a PCO system.
🎯 Importance of Tracking Potential Change Orders
Tracking PCOs is essential for preventing time and monetary losses. It also instills confidence in clients by showing them that your team can handle changes efficiently. The PCO system ensures a clean and organized approach to tracking all changes, safeguarding against lost information. Even if an issue doesn't result in a change order, the PCO system allows for easy reference and centralization of information.
📂 Setting Up the PCO System
To implement the PCO system, you need to set up the necessary infrastructure. Start by creating PCO folders to organize each PCO number. These folders will hold all related documents and communications. Furthermore, utilize the PCO workbook, which consists of various tabs for different purposes.
Creating PCO Folders
The PCO folders within the designated directory will provide a structured arrangement. Each PCO folder corresponds to a specific PCO number. Feel free to create as many folders as necessary for your project. This segregation ensures efficient storage of PCO-related information.
PCO Workbook
The PCO workbook is an essential tool for tracking PCOs throughout the project. It comprises three tabs: Contractor PCO Log, Owner PCO Log, and Subcontractor Change Order Log. These tabs facilitate detailed record-keeping and enable a comprehensive overview of PCOs.
📝 Contractor PCO Log
The Contractor PCO Log, found within the PCO workbook, serves as a centralized tracker for every PCO opened on the project. By entering specific information such as category, reference number, description, contractor name, and status, you can effectively manage each PCO. Preliminary and actual cost estimates can also be recorded here.
⭐ Owner PCO Log
The Owner PCO Log, also located within the PCO workbook, tracks all owner-related PCOs. It provides a summary format to monitor the overall status of owner PCOs on the project. This log not only aids internal tracking but also serves as a client-facing tool to present an overview of PCOs for review and approval.
Tracking Owner-Related PCOs
To ensure concise tracking, copy the relevant PCOs from the Contractor PCO Log to the Owner PCO Log, exclusively including those intended for client review. Avoid including PCOs that are not to be presented to the owner. This segregation streamlines the presentation of PCOs to the client.
Providing Client Summary
The Owner PCO Log acts as a high-level tracking mechanism for PCOs presented to the owner. It offers a summarized view of PCOs for quick reference and status updates, enhancing communication and clarity with clients.
🔧 Subcontractor Change Order Log
The Subcontractor Change Order Log in the PCO workbook facilitates effective tracking of change orders issued to subcontractors. This log provides visibility into their total contract values, approved change orders, dates of execution, and updated contract amounts. By monitoring this information, you can ensure transparency and efficiency when collaborating with subcontractors.
🔄 Process for Creating a Potential Change Order
When an issue arises on the project that may lead to a change order, follow this process:
- Create a new PCO in the PCO Log.
- Use the next available PCO number for reference.
- Enter relevant details like category, reference number, description, contractor name, and status.
- Provide preliminary or actual cost estimates.
- Track internal company costs and owner costs associated with the PCO.
- Update the PCO Log as new cost information becomes available.
💰 Tracking Costs and Information
Accurate tracking of costs and information related to PCOs is vital for project management. The PCO Log allows for comprehensive monitoring of both internal company costs and owner costs.
Internal Company Costs
Within the PCO Log, record costs incurred by subcontractors and your company. Update this information as costs are received, ensuring accurate tracking throughout the PCO process.
Owner Costs
Track the owner change order request number and issued owner change order number for each PCO. Segmenting this information within the PCO Log streamlines the tracking of owner-related costs.
💼 Creating PCO Folder and Saving Related Items
Once a PCO is created in the log, it's time to establish a corresponding PCO folder. The PCO folder should match the PCO number allocated in the log. Save all relevant items in this folder, including emails, documents, plans, requests for information, and pricing. Having everything readily accessible in the PCO folder simplifies the preparation of change order requests and ensures a thorough audit trail.
👍 Benefits of the PCO System
Implementing an effective PCO system offers several benefits:
- Clean and organized tracking of changes
- Protection against time and monetary losses
- Enhanced client confidence in handling changes
- Thorough compilation of change order requests
- Recovery of missed change orders, leading to financial gain
📈 Success Stories with the PCO System
One company successfully utilized the PCO system and recovered over $350,000 worth of previously missed change orders. The implementation of a well-structured PCO and change order management system enabled them to compile requests, track costs accurately, and submit professional change order packages. Ultimately, these packages were approved and paid, highlighting the effectiveness of the PCO system in capturing missed opportunities.
📝 Preparing and Creating Change Order Requests
Watch the accompanying video to learn how to prepare and create change order requests in minutes using the PCO system. This streamlined process ensures efficient issuance and approval of change orders.
🏁 Conclusion
Effectively managing potential change orders is crucial for project success. Implementing a PCO system allows for comprehensive tracking, protection against losses, and increased client confidence. By setting up PCO folders, utilizing the PCO workbook, and following the step-by-step process, you can streamline change order management and benefit from organized and efficient project control. Start implementing the PCO system today and experience the positive impact it brings to your projects.
Highlights
- The PCO system enables efficient tracking of potential change orders.
- Tracking and managing PCOs helps prevent time and monetary losses.
- The PCO system enhances client confidence in handling project changes.
- The PCO workbook provides a structured approach to PCO tracking.
- Creating PCO folders facilitates organized storage of related documents.
- The Contractor PCO Log helps manage individual PCOs in detail.
- The Owner PCO Log offers an overview of PCOs for client review.
- The Subcontractor Change Order Log assists in tracking subcontractor-related change orders.
- Accurate tracking of costs is essential for effective project management.
- Saving related items in the PCO folder ensures easy access during the change order process.
- The PCO system has proven success in recovering missed change orders.
FAQ
Q: Can the PCO system be used for different types of projects?
A: Yes, the PCO system can be implemented in various project types and industries where potential change orders are anticipated.
Q: How does the PCO system benefit subcontractors?
A: The PCO system improves transparency and provides clear visibility into change orders issued to subcontractors, fostering efficient collaboration and tracking.
Q: Can the PCO system be tailored to fit specific project requirements?
A: Absolutely! The PCO system can be customized to meet the unique needs of each project, ensuring seamless integration within existing project management processes.
Q: Is the PCO system suitable for large-scale projects?
A: Yes, the PCO system is scalable and can be effectively implemented for projects of all sizes, ensuring efficient change order management throughout the project's lifecycle.
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