Change Order Types

TechKnowledge Content

Question:
What is the difference between Internal, Customer and Company change orders types?


Answer:
The functionality difference between the 3 types of change orders is approvals. Internal and Company change orders are approved by employees. Customer change orders are approved by customers.


The following describes the theory behind each of the change order types:


Internalchange ordersare created for verification, approval and tracking audit trails. These orders generally change the project’s budget, reallocate budget amounts and transfer contingencies but don’t have any billing impact on the project. This type does not require customer approval. Users will be allowed to modify budgets and create transactions.


Companyinitiated changes involve work as proposed by the company that may impact project costs but not the project price for the customer. This type requires the Company’s representative for approval. Depending on the value and scope of the change order, this type of change order may eventually turn into a Customer type.


The
Customertype involves changes requiring the approval of the customer or his representative. These orders are chargeable to the customer and usually impact the project amount or contract amount. Users will be allowed to modify budgets, create and post transactions, as well as generate billings.




This article was TechKnowledge Document ID:25074

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