How to manage variations more profitably.
This blog identifies the typical issues construction contractors experience when managing variations and provides guidance on how software can automate change management.
The reality of managing change in construction
No matter how well scoped and planned a construction project is at the tender stage, once the project starts onsite, variations are inevitable. For each change, the Quantity Surveyor or Commercial Manager has the tedious job of rescoping the work, requesting quotations, producing a new rate build up and recalculating the cost. And that’s all before communicating the change to the Contracts Manager onsite.
Contract work and variations are often tracked manually using numerous, error prone spreadsheets combined with disparate systems– this makes it difficult to communicate both up to date and reliable information between the office and site teams. And because the information is disjointed and constantly changing, tracking project performance and profitability accurately and in real-time is a continual battle.
“The average time spent administering a change order is 182 minutes.”
Creative Systems in Structural and Construction Engineering
It’s not to say that contractors don’t want variations; quite the opposite in fact, as many businesses capitalise on additional profit and revenue this way. However, in many cases it’s hard to establish if the profit has been realised, because the processes are manual. This combined with the sheer volume and diversity of variations, means that change management quickly becomes time consuming and costly to a business. Now imagine automating each revision so it’s done in a fraction of time, and variations could help you make more profit.
Chalkstring can help
Project cost management software, like Chalkstring, automatically and immediately updates project information to include any revisions or variations. It recalculates costs accordingly, meaning that the data is always up-to-date and everyone can access it.
- Manage variations faster – from anywhere, at any time.
- Share project changes across your team easily.
- Ensure every variation is managed efficiently and delivers the maximum profit for your business.