Changes are part of almost every construction project. If they aren't tracked well, they can lead to disputes and claims. In RedTeam Flex, you manage a change much like you start a new project: enter the scope, upload any new or revised drawings, estimate the cost, get quotes from vendors, and prepare a proposal for your customer.
Potential Change: the change as it exists in RedTeam Flex. You gather backup and price the change while it's a potential change.
Change Proposal: the proposal document with the price and scope of the change. You can send it to your customer before the change order is signed.
Potential Change Order: the unauthorized AIA-style change order. It stays a potential change order until it's signed and approved.
Authorized Change Order: the signed and approved change order. Once you authorize it, the items in the change estimate are added to the project budget, and the items in the change SOV are added to the project SOV.
A potential change has 7 steps. Steps 2, 3, 5 and 6 are optional.
Step 1: Create a potential change
Record a potential change as soon as you expect a change to the contract scope, for example a customer request, an issue in the field or a revised drawing. That way nothing is missed before a change order is issued.
Open the project's Contract tab, click New, then click Create Potential Change. You can also click the Home icon, then + Create Potential Change.
Check the required fields: Contact, Manager and Work Location.
Enter a Scope Change Name. You can change it later.
Select the Change Type. A Customer Change is presented to your customer and affects the contract. An Internal Change is for internal tracking only.
(Optional) Enter Performance Constraints and a Work Description. They show on requests for quote and in the planroom.
Click Next step.
Step 2: Affected Vendors
Affected vendors are now picked in Step 4: Cost Estimate, from the Add (+) menu. Step 2 shows a reminder and has nothing to fill in, so click Next step.
Step 3: Plans & Specs
If the change comes with new or revised drawings, upload them here. They're added to your plans and specs and scoped to this change, so they can go out with requests for quote.
Click Sets / Sheets and upload the files.
Review and confirm the sheets. For the full steps, see New Plans & Specs: Uploading Plans and New Plans & Specs: Reviewing, Rescanning and Confirming Plans.
Click Next step.
Step 4: Cost Estimate
Here you estimate the cost of the change and mark it up to get the price for your proposal. If you'd rather get vendor pricing first, go to Step 5, then come back and enter the costs.
Click the Add (+) icon:
Affected Vendors: pick the cost codes of vendors already hired on the project (they come from the commitments in the Buyout tab). A vendor without a commitment isn't listed. Add them later, when you issue their commitment.
Add Cost Codes: search for and add more cost codes.
You can also add an alternate, a supplemental markup or a bid package, or import from a spreadsheet or another project.
Click the arrow next to a cost code to open its assembly. Add, change or delete line items to break down the cost, using the + row to add one.
Review the Total Price. You can change it, and under Price Adjustment you can see the type of proposal and change the fee.
Click Next step.
Step 5: Vendor Quotes
This step lists the requests for quote (RFQs) for this change, grouped by bid package, with each vendor's status, due date and bid. RFQs come from the bid packages you add in Step 4. For how to build bid packages and send RFQs, see Bid Packages & Bid Leveling.
Click the View icon to open a vendor's RFQ or quote.
Click Next step.
Step 6: Schedule of Values
The schedule of values (SOV) is the list of values you'll bill your customer for this change. You only need one for Fixed Price and Construction Management proposals. T&M proposals don't use an SOV.
Click the Add (+) icon, then:
Add Schedule of Values to add lines one at a time (select the type of value, enter the description and scheduled value, then click Save), or
Import SOV from Estimate to build it from your Step 4 estimate. Select the import basis and allocation method, then click Continue.
You can also add headings or import an SOV.
To edit a line, click its pencil icon. To delete one, click its trash can icon. A line that's been billed against can't be deleted.
Click Next step.
Step 7: Change Proposal
Finalize the proposal and send it to your customer.
Check the Proposal Format. It starts with the project's default format (see Set a Project's Change Proposal Defaults) and lists only active proposal forms.
Set the Proposal Date. It shows in the proposal header.
Choose how to show the scope of work:
Link to Estimate pulls the items from your Step 4 estimate. Show them by cost division, cost code, assembly, or use the work description. Click + Add Scope Items to add more.
Unlink from Estimate if you don't use the RedTeam estimating module or didn't build an estimate in Step 4.
Fill in the timing fields, in calendar days:
Proposal Expiration: how long the proposal stays valid.
Time Impact: how much the change adds to or takes off the project schedule. Enter 0 if none.
Proposed Punch Duration: how much the change adds to or takes off the punch. Enter 0 if none.
Use Comments for internal notes (your customer doesn't see them), and click + Add Clarifications / Alternates to add any.
Under Proposal Attachments, check what to include: Plans & Specification (from Step 3), Schedule Of Values (click Manage Schedule of Values to edit it), Selected Vendors (the quotes you picked), Unit Prices (from the Contract tab) and Bid Leveling Output. Click + Add Attachments to add files from your computer.
Under Customer Authorization, enter the customer's change order number in Customer Change ID if they have one.
Click Save, then View Proposal to review it.
When it's ready, click Commit Pricing. This finalizes the pricing and removes the DRAFT watermark.
To send the proposal, open it with the View icon and click Email.
Authorize a potential change on its own (optional)
Most potential changes are rolled into a change order. If a potential change is approved as a standalone scope, you can authorize it directly. This skips the change order process and authorizes only that scope.
In the project's Contract tab, find the potential change and click its Tools icon.
Click Authorize. It's available once the pricing is committed.
Enter the Change Order ID if you want, check the Change Order Date, then click Save.