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The Risks of Paper-based Change Orders

RhumbixApril 28, 2020 • 1 min read

Design changes and rework are inevitable in construction projects. Very rarely does a construction project go from beginning to end without changes to the original project scope. In fact, according to the Project Analysis Group, an average of 35% of all construction projects will have a major change. Processing these change orders can be a tiresome burden, but even more so when done manually with a paper/pen. Unfortunately, even in today’s digital world, nearly 50% of construction professionals manually prepare and process out of scope work and reports leaving firms wide open to costly project risks.

Administrative Risks
Depending on the design and functionality, a construction site will have countless activities in the process, from site excavation, the installation of underground utilities, concrete pouring, steel erection, framing, roofing, exterior, and interior work, etc.  Paper-based changes made throughout any of these processes can be a productivity drain.

Legal Risks
Most construction projects will involve multiple parties such as architects, owner/developers, bankers, contractors, and subcontractors, so paper-based change orders can open the floodgates to a number of conflicts. According to the Global Construction Disputes Report, a full 90 percent of construction disputes involve change orders. These disputes take on average, 18 months to resolve.

Fortunately, our solutions help owners, contractors and subcontractors avoid the potential risks of manual and paper-based approaches to change orders. Rhumbix T&M Tracking provides a cloud-based paperless solution for submitting, editing, tracking, and approving change orders and T&M tags which means faster, easier, and more complete data across the board.


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