Creating a Change Order Follow

Creating a Change Order

Purpose: If the contract needs additional items added to it, use the “Change Order” to perform that task. Since a contract is a finalized document changes cannot be made to it. A “Change Order” is the method to use for contract changes.

Benefits:

·      A formalized process with an official change order.

·      Clearly identifies Materials, Labor Codes, or Other items coming onto the change order.

·      Step by step procedure guides the user through the change order process.

 

Once a contract has been finalized, changes cannot be made to it. However, as the job progresses, the user may need to add new or cancel existing products or services to/from the contract job.

A change order, which, when finalized, is another legally binding and non-editable document, like a contract. It also passes through an approval process from a status of “pending” to “finalized.” The user can add as many change orders to a job as needed, and the current status is recorded and viewable at any time from the “Job Documents” tab on the Contract Job window.

1. From the GlasPacLX menu, select Contracts > Open Contract Job option to open the Contract Job Finder. Highlight the contract to add a change order and then click the Select Contract Job button to open the Contract Job window.

2. On the Job Documents tab, select the Create Change Order button to open the Pending Change Order Detail for Job window, as shown in the following image.

3. In Document ID (required), a default entry has been made or the user can enter an abbreviated name that identifies this change order.

4. In Description (required), enter the full description that identifies this change order. Be descriptive as it may help later.

5. Add line items to the change order. Items can have positive (+) or negative (-) cost and price values, depending on if the user is making additions to the contract job or cancel existing line items. Both positive and negative changes will be reflected in the Job Summary area of the Contract window.

6. Click the Summarize to Estimate button to get the additional part(s) finalized.

7. In Approved By, enter the name of a supervisor who can approve this change order.

8. In Approved Date, use the drop-down calendar to select the date when this change order was approved.

9. In Billing Category, use the drop-down menu to select the type of line item this is.

10. In Description, describe product, service, or other items needed for this job.

11. In Estimated Tax, enter the tax (Use Tax) amount associated with this line item.

12. In Estimated Cost, enter the cost of this line item. Note: For a positive value, enter the cost, as normal. To make a negative value, add a minus (-) to the beginning of the cost.

13. In Markup %, enter the markup percentage for this line item. Notice the Scheduled Value is updated as a result. Note: Enter a Scheduled Value and it will populate the Markup %.

14. Repeat the last five steps to add more line items as needed.

15. To add a note to this change order, select the Edit Note button. The Note for window appears. In the blank space provided, type any note or message to associate with this job. Select the This is a Popup Note selection if this note should appear whenever this change order is opened. When satisfied, select the Save Note button.

16. Once satisfied with this pending change order, but are not ready to finalize it, select the Save button. Create as many pending change orders as needed by repeating these steps. All pending change orders for this job can be opened at any time from the Job Documents tab on the Contract Job window.

 

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