Overview
The Contract Change module allows you to document and track changes to a contract or additional work as Change Orders, ensuring clarity and accurate project adjustments.
Prerequisite
Your main project contract must be filled out and executed between your company and your client before creating a change order. Executing the contract will create a commitment in the Master Project Budget/ACR and allow invoicing and change orders. The quoted items and schedule of values defined within the contract will determine how the change order will be structured.
If your client is on-system, they can receive your change orders through Ingenious for review and either approve or reject the change order digitally.
If your client is off-system, the change orders you create will be for record and need to be transmitted outside the platform to your client for approval.
Process
Select the project from the project list
Navigate to the Contract Changes module from the project dropdown menu or via the project dashboard on the left.
See the Your Change Orders section
Here you will see the status of all the change orders your company has created and submitted for the selected project:
Create Your Contract Change
1. Click +Create at the top right of the screen.
2. Select the type of contract change you want. You can choose from:
Contract Change: A change order or amendment to an executed contract.
Contract Change Request Package: These are used to request pricing from vendors for potential changes to the scope of work before formalizing a change order. This allows project teams to evaluate the cost impact of potential changes and make informed decisions about whether to proceed.
3. Select the executed Main Contract in order to create a 'Your Change Order.'
4. Now select how you would like to create the Contract Change:
Start from scratch: Recommend selecting when you received the contract change and want to go through the standard internal and client approval process.
Upload executed agreement: Select this option when you have an executed contract change and want to input it for record keeping.
Warning: This skips the internal and client approval process and will mark the contract change as executed.
5. Hit the Next Step button.
Create Your Change Order
Enter the relevant details: name, unique ID, the type of change order, any schedule impact, job site location, source, and description.
Click "Next Step" to proceed. Add any supporting documents, such as vendor amendments, vendor change orders, or any additional documents relevant to the contract change.
Click "Next Step" to proceed. This will allow you to add any Work Breakdown Structure (WBS) items to the change order. This is an opportunity to either expand the existing project work (add more tasks to what's already planned) or add entirely new tasks to the project.
Now you can either:
Save as Draft: This saves your entry for later editing.
Mark as Pending Internal Approval: This passes through the approval workflow for Contract Changes.
Approve
To Approve, type YES to confirm (it must be in all caps). Add any notes you want to the approval and click Approve change order.
Once submitted to the client, you can then Mark it as submitted to the client.
You can then Record client approval, enter who approved it, type CONFIRM (it must be in all caps), and click Record Client Approval.
Click Execute as the final step and upload the executed agreement.
Contract Changes Q&A
Q: What is the prerequisite for creating a contract change for your client contract?
A: The main project contract between your company and your client must be filled out and executed before you can create your change order. This creates a commitment in the Master Project Budget/ACR and enables invoicing and change order processing.
Q: What happens if my client is off-system?
A: If your client isn't using the Ingenious platform, the change orders you create will be for your internal records. You'll need to transmit them to your client separately for approval outside the system.
Q: What is the purpose of the Work Breakdown Structure (WBS) section?
A: The WBS section lets you add or expand the project's tasks within the change order. You can add more work to existing tasks or include completely new tasks.
Q: What does "Mark as Pending Internal Approval" do?
A: This initiates the internal approval workflow for your Contract Change.
Q: How do I finally execute the change order?
A: After client approval, click "Execute" and upload the final, executed agreement.
The Ingenious platform streamlines the change order process. By following these steps, you can efficiently manage contract changes, whether your client is on or off the system. Ensure your main project contract is executed before creating change orders.
See Also