"Not automating change order management is like trying to navigate a new city without a map or GPS – it's possible, but it's much more difficult, time-consuming, and prone to mistakes."
Chapter 3
Reduced Risks Of Errors
Reducing errors in change order management is critical because errors can lead to project delays, cost overruns, and disputes among stakeholders, ultimately affecting the success of the construction project. In this Chapter, we'll delve into the role automating Change Order Management can have in mitigating risk.
1. Benefits Of Automated Change Order Management
Manual change order management is prone to various risks, which can lead to project delays, cost overruns, and even legal disputes. The following are some of the common risks associated with manual change order management:
Missing signatures: Without a centralized system for change order approvals, it can be challenging to ensure that all required signatures are obtained, leading to potential disputes over the validity of change orders.
Incorrect calculations: Manual calculations can be prone to human error, leading to incorrect cost estimates or schedule projections. This can result in significant project delays or cost overruns.
Miscommunications: Manual change order processes can lead to miscommunications among stakeholders, causing confusion, misunderstandings, and ultimately, scope creep. These issues can significantly impact the project's timeline, budget, and quality.
To mitigate these risks, construction companies can leverage automated contract management systems with the following key features:
Built-in validation checks: Automated contract management systems can verify that all required fields are completed, ensuring that no vital information is missing and that change orders are valid.
Version control: Automated contract management systems keep a clear record of all revisions and changes, providing a transparent audit trail that can help prevent disputes and misunderstandings.
Automated calculations: Automated contract management systems can calculate costs and schedule impacts automatically, reducing the risk of human error and minimizing the potential for cost overruns and delays.
By utilizing these features, construction companies can reduce the risk of errors associated with manual change order management and ensure that their projects remain on track, on budget, and of high quality.
2. Key Features Of Automated Contract Management Systems For Error Reduction
Automated contract management systems offer several key features that can significantly reduce the risk of errors in change order management. These features include:
Built-in validation checks: Automated systems can include built-in validation checks that ensure all required fields are completed and all necessary information is provided. These checks help to prevent errors and omissions, reducing the risk of misunderstandings and disputes.
Version control: Automated contract management systems track changes to contract documents, ensuring that all stakeholders are working from the most up-to-date version of the document. This reduces the risk of errors resulting from outdated information or conflicting versions.
Automated calculations: Many automated contract management systems can perform calculations automatically, reducing the risk of errors resulting from manual calculations. This feature ensures that all financial information, including cost estimates and budget adjustments, is accurate and up-to-date.
By mastering efficient workflows for change order approvals, construction companies can save time, minimize delays, and keep their projects on schedule and within budget.
