The average time between a signed T&M ticket and a change order request submission is 24 days with manual processes. That’s nearly a month of billable work sitting undocumented, unsubmitted, and at risk of being disputed.
Effective change order tracking eliminates this gap. Digital solutions can reduce that 24-day processing time to 3.5 days while providing the documentation trail that gets you paid.
What is Change Order Tracking?
Change order tracking is the process of documenting, monitoring, and managing modifications to the original construction contract scope throughout the project lifecycle.
Effective tracking includes:
- Documentation capture: Recording all change requests with supporting details
- Status monitoring: Tracking where each change order is in the approval workflow
- Cost tracking: Monitoring cumulative impact on project budget
- Schedule tracking: Assessing timeline impact of approved changes
- Communication management: Keeping all parties informed of change order status
Change order tracking differs from T&M tracking. T&M tickets document the labor and materials used for extra work. Change orders formalize the cost and contract adjustments. Both must work together for effective financial management.
The Real Cost of Poor Change Order Tracking
Manual change order processes create measurable financial damage:
Processing Delays
- 24 days average between T&M ticket signing and change order submission
- Specialty contractors take 30 days average to price T&M tickets
- Change orders submitted late are far more likely to be rejected
Cost Overruns
- 56.5% of cost overruns are caused by design changes
- 52% of total cost growth comes from rework
- 32% of cost overruns stem from estimating errors and omissions
Project Failure
- 98% of megaprojects experience cost overruns or delays
- Average cost increase on large projects: 80% of original value
- 35% of projects experience at least one major scope change
The consequences extend beyond individual projects: arbitration and litigation costs, higher insurance premiums, and loss of future business opportunities.
Essential Documentation for Change Order Tracking
Complete documentation prevents disputes and ensures payment. Every change order should include:
Identification
- Unique change order number
- Project name, location, and contract number
- Date of request and submission
- Contact details for owner, contractor, and architect/engineer
Change Details
- Comprehensive description of the change (added/deleted work)
- Reason for change (unforeseen conditions, design errors, owner requests)
- Detailed scope of work with specifications
- Supporting documentation (photos, drawings, RFIs)
Financial Impact
- Itemized pricing for labor, materials, equipment
- Markup calculations per contract terms
- Cumulative impact on total contract value
Schedule Impact
- Additional time required for the change
- Impact on project milestones
- Revised completion date if applicable
Standard forms like AIA G701 and ConsensusDocs 202/795 provide established frameworks for this documentation.
Change Order Tracking Best Practices
1. Standardize Your Process
Use consistent forms and templates for every change order. Standardization reduces errors, speeds processing, and ensures nothing gets missed.
2. Centralize Documentation
Maintain a single repository for all change order documents. Centralization cuts document retrieval time by 50% and eliminates the “where is that file” problem.
3. Submit Within 7-14 Days
Don’t wait until month-end to process change orders. The longer the lag between work performed and change order submitted, the higher the dispute risk.
4. Track Cumulative Impact
Monitor how change orders affect total project budget and timeline. Individual changes may seem small, but cumulative impact can blow budgets before anyone notices.
5. Communicate Proactively
Send monthly change order logs to GCs and owners. No one should be blindsided by cumulative costs. Regular communication prevents disputes.
6. Update Schedules Immediately
When change orders impact timeline, update the project schedule right away. Delayed schedule updates create confusion about deadlines and completion dates.
7. Maintain Approval Visibility
Everyone should be able to see where each change order sits in the approval process. Hidden status creates bottlenecks and missed deadlines.
How Technology Transforms Change Order Tracking
Digital change order tracking delivers measurable improvements over manual processes:
Processing Time
- Manual: 24+ days from T&M ticket to change order submission
- Digital: 3.5 days average processing time
- Improvement: 70%+ reduction in processing time
Cost Control
- 15% reduction in cost overruns through proper impact evaluation
- 20% increase in project delivery efficiency
- 25% improvement in decision-making speed
Communication
- 30% reduction in miscommunication issues
- 50% reduction in approval delays through automation
- Real-time visibility for all stakeholders
Key Features in Change Order Tracking Software
Core Tracking Features
- Electronic submission: Create and submit change orders digitally
- Status tracking: Real-time visibility into approval workflow
- Document management: Attach supporting files to change orders
- Budget tracking: Monitor cumulative impact on contract value
- Schedule integration: Link changes to project timeline
Workflow Automation
- Automated routing: Send change orders to the right approvers automatically
- Notifications: Alert when approvals are needed or deadlines approach
- Multi-level approval: Support complex approval hierarchies
- Bulk actions: Approve or process multiple change orders at once
Field Capabilities
- Mobile access: Review and approve from anywhere
- Photo documentation: Attach time-stamped images
- Digital signatures: Capture approvals on-site
- Offline functionality: Works without connectivity
Integration Requirements
- Accounting sync: Connect with QuickBooks, Sage, or your accounting system
- ERP integration: Flow data to Viewpoint, Spectrum, or CMiC
- Project management: Integrate with Procore or other PM platforms
- T&M tracking: Link field tickets to change orders automatically
T&M Tracking: The Foundation of Change Order Management
Change orders don’t start in the office. They start in the field when extra work happens.
T&M tickets capture the labor, materials, and equipment used for work outside the original scope. This field data becomes the foundation for change order requests.
The challenge: getting that field data from the job site to the office quickly and accurately.
Digital T&M tracking solves this by:
- Capturing data in real-time on mobile devices
- Timestamping and geotagging all entries for verification
- Attaching photos as supporting documentation
- Capturing digital signatures on-site
- Syncing data immediately to office systems
When T&M tracking feeds directly into change order management, the 24-day processing gap disappears. Field data flows to change order creation without manual re-entry, lost paperwork, or approval bottlenecks.
Approval Workflow Optimization
Different organizations need different approval workflows:
- Sequential approval: Change orders route through approvers in a specific order
- Parallel approval: Multiple approvers review simultaneously
- Conditional approval: Workflow changes based on dollar amount or change type
- Multi-level approval: Higher-value changes require additional approvers
The key is matching the workflow to your organization while eliminating unnecessary delays. Automated routing ensures change orders reach the right people without manual forwarding.
Frequently Asked Questions
What is change order tracking in construction?
Change order tracking is the process of documenting, monitoring, and managing modifications to the original construction contract throughout the project lifecycle. It includes capturing change requests, tracking approval status, monitoring cost impact, and maintaining documentation for all scope modifications.
How long does change order processing typically take?
With manual paper-based processes, the average time from T&M ticket to change order submission is 24 days. Digital solutions can reduce this to 3.5 days, a 70%+ improvement in processing time.
What documentation should be included with change orders?
Change orders should include: unique identifier, comprehensive description of the change, reason for the change, detailed scope of work, itemized pricing, time adjustments, project identification, and contact details. Supporting documents like photos, drawings, and RFIs should also be attached.
How do T&M tickets relate to change orders?
T&M (Time & Materials) tickets document the labor and materials used for extra work in the field. This field data becomes the foundation for change order requests. T&M tickets track quantities without pricing; change orders formalize the cost and contract adjustments based on that field data.
What features should change order tracking software have?
Essential features include: electronic submission, real-time status tracking, document management, budget impact tracking, automated approval workflows, mobile access, digital signatures, and integration with accounting/ERP systems.
Key Takeaways
- 90% of projects experience cost overruns: change orders are a primary driver
- 24 days average processing time with manual methods creates dispute risk and cash flow problems
- Digital solutions cut processing to 3.5 days—a 70% improvement
- Standardize documentation using established forms (AIA G701, ConsensusDocs)
- Submit within 7-14 days of work completion to minimize rejections
- Track cumulative impact on budget and schedule continuously
- T&M tracking is the foundation: field data must flow seamlessly to change orders
- Integrate systems to eliminate manual re-entry and approval bottlenecks
Effective change order tracking isn’t about adding administrative burden. It’s about capturing value, preventing disputes, and maintaining control over project finances. The contractors who track change orders well are the ones who get paid.
