Changes to a project scope happen and they are the key cause of revenue loss during a project. Ivy enables you to create change orders directly from your approved estimates, and send them to your client for approval; meaning you don't have to search through endless emails and text messages to find the approvals you need to collect your money on time.
What is my client paying for in a change order?
When creating a change order, you will notice that the client is only charged for the difference between the planned and updated values. This allows you to send a payment request for the planned amount, and collect money separately in the change order for the updated costs.
Creating change orders
Creating change orders in Ivy is easy. Simply access an approved estimate, and select the checkboxes next to the line items that require a change in either cost or quantities.
Once you have the line items selected, click on the "Create change order" link.
This will now open up a change order for you, where you can adjust quantities and cost, add notes for each line item, add a change order fee, and send it to your client for approval.
Updating cost and quantities
Once your change order is created, you will notice that for each line item you have both the planned quantities, material, labor, and profits (see arrow 1 above) as well as updated. The planned values come directly from your approved estimates and cannot be changed. The updated values can be changed based on the changes made. For example, if quantities have changed from 300 square feet to 350, or if material price has changed from $5.00 per unit to $10.00 per unit.
As changes are made in your change order, you will notice a yellow highlight indicating the changed values, making it easy for you to see your updates.
You can update the line item name and add any notes to share with your client on the relevant changes, and add a change order fee based on your contract.
Once you've made all the necessary changes, be sure to set the due date for approval and your payment terms. Note that by default the payment terms are to pay upon approval.
You can remove line items on change orders that are in draft or sent status.
Sharing with your client
To share the change order with your client, and get approval directly within Ivy, simply click on "Preview & Share." You will now be able to preview what your client will see, set the subject and body of the email, and click send to share with your client.
Your client will receive an email with the ability to approve the change order. In order to approve it, they will have to check a box acknowledging they understand the terms of the change order.
Once they’ve check that off, they will be prompted to provide an eSignature. Only after signing the change order, they will be able to hit "Approve."
Logging a payment
To log a payment on a change order, click on the three dot "options" menu in the top right. You can then enter the payment details and save.