{"id":102216,"date":"2018-02-28T00:00:00","date_gmt":"2018-02-28T05:00:00","guid":{"rendered":"https:\/\/sisn.com\/importance-tracking-pending-change-orders\/"},"modified":"2018-02-28T00:00:00","modified_gmt":"2018-02-28T05:00:00","slug":"importance-tracking-pending-change-orders","status":"publish","type":"post","link":"https:\/\/sisn.com\/en-gb\/importance-tracking-pending-change-orders\/","title":{"rendered":"The Importance of Tracking Pending Change Orders"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"102216\" class=\"elementor elementor-102216 elementor-100473\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1b7367c9 e-flex e-con-boxed e-con e-parent\" data-id=\"1b7367c9\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-781eea07 elementor-widget elementor-widget-text-editor\" data-id=\"781eea07\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h1 class=\"underline\">The Importance of Tracking Pending Change Orders<\/h1><div id=\"post-9820\" class=\"post\"><div class=\"article\"><p><strong>Change Order Management<\/strong>\u00a0has always been an important process when executing projects. The process is fairly well defined and clean when there a request for a proposal or estimate from the owner that ultimately results in an approved Change Order and authorization for work. However, in the real world this is not always the case. Work may need to start prior to formal approval of a Change Order for a variety of reasons. These include Field Directives, Verbal Approvals or authorization by a Project Manager to prevent schedule impact on unavoidable out of scope work.\u00a0The extent to which these are covered contractually may somewhat be grey and there is always risk involved.<\/p><h2>From a Project Execution Viewpoint<\/h2><p>From a Project execution viewpoint, the important issue is a clear recognition of the fact that costs are being incurred that have not been budgeted or formally authorized. It therefore becomes the responsibility of the Project Manager to justify increased costs. Certainly, one way to accomplish this is to record such costs as a variance and then update the budget upon approval of a change order. While it seems reasonable, the sheer volume of this activity and the whip-saw fluctuations in project margin can cause a lot of heart ache and make it difficult to understand the exact financial status of the project.\u00a0An acceptable business process is to record such activity as a Pending Change Order. However, management needs visibility of margin risk. The ERP system needs to support this critical business process and the reporting necessary to provide visibility of risk on Project Financial Status reports. Please call us for a deeper understanding of how\u00a0<a href=\"https:\/\/sisn.com\/erp-software-for-construction-microsoft-dynamics-365\/\">Microsoft Dynamics 365<\/a>\u00a0and\u00a0<a href=\"http:\/\/sisn.com\/project-cost-management\/\">SIS PCM<\/a>\u00a0can facilitate this process for your organization.<\/p><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The Importance of Tracking Pending Change Orders Change Order Management\u00a0has always been an important process when executing projects. The process is fairly well defined and clean when there a request for a proposal or estimate from the owner that ultimately results in an approved Change Order and authorization for work. However, in the real world&hellip;<\/p>\n","protected":false},"author":1,"featured_media":102217,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[380,384],"tags":[],"class_list":["post-102216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-en-gb","category-d365-en-gb"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.5 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Importance of Tracking Pending Change Orders | Construction ERP<\/title>\n<meta name=\"description\" content=\"SIS is the leading provider of Microsoft Dynamics 365 Enterprise Resource Planning (ERP), Project Management, and accounting solutions for contractors and professional service companies.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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