How change orders affect budgets and proposals and subcontracts

You can make changes to the budgeted costs, bid amounts, and subcontracts using the 6-4-1 Change Orders window. When you print contract-related reports, Sage 100 Contractor computes the new contract amounts based on the amount in the Contract box in the 3-5 Jobs window and approved changes. In cost analysis reports, Sage 100 Contractor computes the new costs based on the costs from the budget and approved change orders.

Sage 100 Contractor does not alter the original budget created in the 6-2 Budgets window nor does it alter the original proposal created in the 6-9 Proposals window. It does, however, update subcontract totals while retaining the original subcontract amount when change orders are created using the Budget and Sub Change Details tab. These totals can be viewed in 6-7-1 Subcontracts. You can also use the subcontracts window to invoice the entire subcontract or specific change order lines of the subcontract.

After work begins on a contract, enter any changes to the budget or proposal as a change order. As you create the change order, determine whether the costs affect bid amounts, budgeted costs, or both.

For example, suppose you forgot to estimate the cost of some work required in a project. To include the costs in the budget and charge the client, enter the changes to the bid amount on the Prime Change Details tab in 6-4-1 Change Orders. Then on the Budget and Sub Change Details tab, enter the changes to costs.

Otherwise, if you merely want to add the costs to the budget without charging the client, enter only the changes to the costs in the Budget and Sub Change Details tab.

Alternatively, you can set the original budget and manually enter the changes to costs in the affected cost codes. Likewise, you can set the original proposal and enter the changes in the affected cost codes. In addition, you can use a separate cost code for each change order.