It’s time to trade in the truck. It’s been around the block a few times, to dozens of job sites, many miles registered in the old odometer. You’re giving it one last clean out, and, as you’re scraping the debris of years out from under the seat, what do you find?
Could it be a crumpled up, soda-stained change order from a job you finished two years ago?
Your project foreman had the client sign off on this change order for $7,000. He ordered the materials and the work was completed. You know it was completed because the client wouldn’t have accepted the job if it hadn’t been, right?
But… the paperwork never made it into the billing department. The work was never billed.
And there’s no chance you can go back and collect it now.
What could you have done with that $7,000?
Could you have expanded your team? Covered something on another project? Made a bigger donation to that charity you support?
How many wrinkled, soda-stained change orders are under the metaphorical seat right now? How much work COULD you have billed for at the time but missed out? How much MORE money is missing?
Here’s the hard truth. On average, change orders account for anywhere from 8 to 14 percent of capital construction projects and 6% of these fees are never billed across the industry.
If you’re a $2 million construction company, change orders represent $160,000. What percentage could you be risking? What could you do with that extra revenue?
Capturing change orders and updating the job in real time eliminates the risk entirely. If you’d like to find out how we can help, contact us at ImperiumSales@ibsre.com.