Change Management is essential for successful construction project management. Actual or perceived changes are sometimes an inevitable source of disruption for many construction projects that, if not handled properly, can lead to disputes and claims. A major element of the Change Management process is ensuring the accuracy and integrity of plans and specifications and any other contract documents that comprise the project scope of work. It may be fairly straightforward at the outset of a project, but can become challenging when changes are made during the course of the work.
In RedTeam Flex, the process for managing changes and preparing Change Order Proposals is nearly identical to the process for starting up a new project. Once the scope of the change has been entered (i.e. new drawings uploaded and superseded drawings identified), RedTeam facilitates development of a cost Estimate, and Quotes may be solicited from both new and current team members by issuing Requests for Quote. Once Quotes have been selected as Best, new Commitments or Directives may be created quickly and easily right from the Estimate tab.
Potential Change: the Scope Change as it exists in RedTeam Flex. The entire process of gathering backup documentation and putting together a Price for the Change happens while it is a Potential Change in RedTeam Flex.
Change Proposal: the Proposal document that outlines the details of the Change, including price and scope. Proposals can be issued to a Customer prior to the official Change Order being generated and signed if desired.
Potential Change Order: the un-authorized AIA-style Change Order document. It remains a Potential Change Order until the document is signed and approved.
Authorized Change Order: the authorized AIA-style Change Order document. When the Potential Change Order has been signed and approved, you may upload it to RedTeam and authorize the Change Order. At this point the items included in the change estimate(s) will be added to the project budget and the items included in the change SOV(s) will be added to the project SOV.
Step 1: Create a Potential Change
In RedTeam Flex, you can capture and begin tracking a change at the moment you anticipate any change to the scope of the contract with your Customer. This way, all potential changes are recorded even before a change order is issued, so nothing is overlooked.
A potential change could initiate from a Customer request or directive, an issue that arises in the field, a change in the drawing set, or anything else that will impact the contract.
As soon as you are made aware of a potential change, you can enter the information you have collected as a Potential Change in RedTeam Flex. From there, you can manage the specifics of the change, such as pricing and proposal.
Steps:
From the Project's home menu, click "+ Create Potential Change" OR navigate to the project's Contract tab and click the "+" icon
Verify the information in the required fields is correct (Contact, Manager, Work Location)
In the Name field, give the Change a name (you can change this later if needed)
Be sure to select a Change Type (Customer Changes will be presented to the Customer and affect the contract, Internal Changes will not)
(Optional) Enter any Performance Constraints and a Work Description (these will show on RFQs and in the planroom)
When all required fields are filled in, click "Next Step" to proceed to Step 2: Affected Vendors
Step 2: Affected Vendors
The Affected Vendors section will list all of the Vendors that are currently hired on a Project, so that you may choose which of them, if any, may be affected by this particular change. The list of Vendors comes from the list of Commitments that have been issued in the Buyout tab of a Project. If you have not yet issued a Commitment (subcontract, PO, etc.) to a Vendor, they will not be included in the list and will not be available to select as an Affected Vendor.
Selecting Affected Vendors automatically does two things:
Inserts the cost code(s) for that Vendor into the Estimate of the Potential Change
Creates a draft Request for Quote document to solicit pricing for the Potential Change
If your change will affect a Vendor that has not yet been hired on this Project, no problem! You will not add them as an Affected Vendor on this step, but will add them later when you are ready to issue them a Commitment for the work or materials.
Steps:
In Step 2, click the checkboxes for the Vendors that may be affected by this Potential Change
Click the checkbox at the bottom to include only Plans & Specs associated with this Potential Change on the Request for Quote document
Click "Next"
Step 3: Plans & Specs
Often Potential Changes arise from changes in the drawing set. If you receive revised or new Plans and/or Specs you will want to upload those to make them available in your Online Planroom. Additionally, any Plans & Specs uploaded to a Potential Change are included on any Request for Quote emails you can send to Vendors to request pricing for the Change(s).
When revised Plans & Specification files are uploaded to a Potential Change, you have the option of superceding older versions of each file. This process allows you to maintain the latest, most accurate set for your Project.
Steps:
In Step 3, upload any new or revised Plans & Specs related to this Potential Change
Click the New (+) icon
Select "Add Plans & Specs"
In the General section, fill in the Author (architect, engineer, etc.) and Date of the files
(Optional) Enter a Version (i.e. Rev.3), Type (this dropdown is custom), and Notes (shared internally only)
In the Multiple Upload section, click "+ Add Files" or drag & drop files from your computer into either the Split Pages or Don't Split square
Once files have been selected, click "Start Upload"
Click "Continue upload"
When all files have been completely uploaded, click "Review" to Review and Commit the files
Review and rename files and other details (Version, Date, etc.) if needed
Use the Supersede dropdown to select a file from your current set that this uploaded file will replace
Click "Save"
From the Confirmation message, click "close"
Review the uploaded files (Edit or Delete if needed) and when ready, select the files and Commit them
Click "Next Step"
Step 4: Cost Estimate
The Cost Estimate is often the most important step in the Potential Change process, because this step is where you estimate the cost of this Change as well as mark up that cost to generate a price for the Change which can be included on a Proposal to your Customer.
By default, cost codes related to any Vendors you selected as "Affected Vendors" in Step 2 will already be inserted into the Cost Estimate. You can add cost codes as well as delete any unnecessary ones as you build the Estimate.
If you prefer to request pricing from Vendors before putting together the cost of the Change, skip ahead to Step 5 and send out Requests for Quote. Once you have the pricing, you can come back to Step 4 and enter the costs.
Steps:
In Step 4, build your Cost Estimate and adjust the Total Price
Some cost codes were added to the Estimate when you selected Affected Vendors
You can add additional cost codes by clicking the New (+) icon and selecting "Add Cost Code / Assembly)
Search for and click the cost code(s) you want to add then click "Close"
Click the "greater than" icon to open the cost code assembly and add line items to break down the costs
In the Open Assembly, add, modify, or delete line items to break down the cost
After you have added all line items inside the Assembly, update the quantity for the cost code
The Total Price can be selected and updated. The Price adjustment selection allows you to select the type of proposal and change any fees.
Click "Next Step"
Step 5: Vendor Quotes
In cases where this Change includes Affected Vendors who may receive their own Vendor Change Orders once the Customer Change is Authorized, you may want to request Quotes to get pricing from them for this Change. In Step 5, you can create and issue Requests for Quote to these Affected Vendors and any other Vendors you wish to request pricing from.
By default, when you select Affected Vendors in Step 2, an RFQ will be automatically created for these Vendors and will appear in this Step. From there, you may choose to Edit the RFQ and include additional information, such as a Required Date and/or Instructions. Once you have reviewed the RFQs you can Commit them and email them to the Vendors.
Vendors who receive a Request for Quote will be able to upload their Quote directly from the RFQ.
You can click the New (+) icon to request Quotes from additional Vendors.
Once Quotes are received, you can compare and select a "Best" Quote by clicking the star icon.
Steps:
In Step 5, create and send Requests for Quote to Vendors to request pricing for the scope of this Change
Some RFQs were added to the Vendor Quotes when you selected Affected Vendors
You can add additional RFQs by clicking the New (+) icon and selecting "Request for Quote (RFQ)"
If you have already received pricing from Vendors you can upload it as an "Unsolicited Quote" from the New (+) icon
Click the tools icon to View, Edit, Commit, or Delete an RFQ
Commit, Uncommit, Delete, or Email multiple RFQs by checking the boxes and selecting from the buttons
Once a quote has been received for an RFQ, it can either be uploaded by the vendor, or may be manually entered by you
To manually enter a quote, click the tools icon for the RFQ in question and select "Convert to Quote"
Once all quotes have been received, you may select a quote as best by clicking on the star icon for that quote
Step 6: Schedule of Values
In construction, a Schedule of Values is a defined list of tasks that make up the work for a job as outlined in the original contract. Each line item contains one of these tasks as well as its determined value. Cost codes are a good way of organizing your tasks into a Schedule of Values. You will only need to create a Schedule of Values when working with a Construction Management or Fixed Price Proposal. T&M Proposals do not utilize a Schedule of Values.
In Step 6 you will create and manage the Schedule of Values for this change. This is the list of values you will be using to bill your customer for this change, so it is important to consider how you would like the customer to view the items they are being billed for as you create your Schedule of Values.
the SOV can either be built manually, one item at a time, or can be imported from another project, the estimate for the change (created in step 4), or imported from a budget or template. See the instructions below to create your SOV item by item, or import from your change estimate.
Steps:
In Step 6 you will create your Schedule of Values for the potential change
Click the Plus icon to begin and select "Add Schedule of Values" to create a new line item
Select the Type of Value from the drop down, fill in the description and scheduled value, then click "Save" to add the item to your SOV
Continue adding and saving items until your SOV is complete, then click "Cancel" to stop adding items
OR Click the Plus icon and select "Import SOV from Estimate" to import line items from the estimate you created in step 4
Select the Import Basis to determine how line items will show on the SOV, select the allocation method, and click "Continue"
You may edit any line in the SOV by clicking the Pencil icon
You may delete any line in the SOV by clicking the Trash Can icon (once an item has been billed against it can no longer be deleted)
When you have finished creating and editing the SOV for this change, click "Next Step"
Step 7: Change Proposal
Once you have established the price you wish to propose for this Change in Step 4. Cost Estimate, you can finalize and review the Proposal and then email it to the Customer.
In this step, you will be able to include a Scope of Work to outline the items you are proposing to change. You can also specify an expiration for the Proposal, and indicate if this Change will have a time impact, increasing or decreasing the days it will take to complete. Under the Attachments section, you can include any standard attachments such as Plans & Specifications (all the files uploaded and Committed in Step 3), Schedule of Values (entered in step 6), Selected Vendors (Names of any Vendors you selected as "Best" Quotes and includes a link to their Quote), and Unit Prices (the list of the negotiated prices for this Project pulling from the Contract tab).
Steps:
In Step 7, prepare the Change Proposal
Select the Proposal format from your configured options in the dropdown menu
Enter the Proposal Date (date will be displayed on the Proposal in the header)
LINK TO ESTIMATE pulls in items from the Estimate (Step 4) & you can choose to display by Cost Division, Cost Code, Assembly, or use Work Description
UNLINK FROM ESTIMATE can be used if you do not have the RedTeam Estimating module active, or if you did not build an Estimate in Step 4
Proposed Expiration is the amount of time for which this Change Proposal will be valid
Time Impact is the increase/decrease in time that will impact the completion of the Project (if unchanged, use 0)
Proposed Punch Duration is the increase/decrease in time that will impact the completion of the Punch (if unchanged, use 0)
Comments can be used to track any internal comments or notes (Customer will not see)
If you have any Clarifications or Alternates to display, click "+ Add Clarifications"
Check the box to include the Plans & Specifications uploaded in Step 3
Click "Manage Schedule of Values" to make any edits to the SOV created in step 6
Check the "Selected Vendors" box to include Quotes from the Vendors you selected as "Best" in Step 5
Check the box for Unit Prices to include the list of negotiated Unit Prices from the Contract tab of the Project
Add additional attachments and files from your computer by clicking "+ Add Attachments"
If the Customer has a contract or reference number you would like to include on the Proposal, enter if under Customer Change Order ID
When you are finished, click "Save"
To review the Proposal, click "View Proposal"
After reviewing the Proposal, you can go back to Step 6 to make additional changes, or click "Commit Pricing" to finalize & remove the DRAFT watermark
To reopen and send the Proposal, click the View icon and on the new page click "Email" button
Step 8: Authorizing Change Proposal (Optional)
In most situations it can reasonably be assumed that a potential change will be rolled into a change order for final client consideration. That being said, there may be situations where that is not the case, and a potential change will be authorized as a standalone scope. This can be accommodated within RedTeam Flex. This will completely bypass the Change Order process, and only authorize the individual scope.
Steps:
Navigate to Contract Tab within the desired project, and locate the Potential Change
Select the Tools icon, and then select "Authorize".
Enter in the Change Order ID (if desired) and double check the Change Order Date, then select "Save" when you are ready to authorize the Change.
