The change orders you did and never billed
The field did the work. The paperwork never caught up. Ninety days later nobody can prove it happened.
Unbilled change orders are the cleanest money in construction and the easiest to lose. The work is done and the cost is already spent, so the only thing between you and the revenue is a signature. Chasing that signature works early and gets harder every week you wait. By closeout, the superintendent who directed the work has moved on and your claim becomes an argument.
Three moves, in order
Step 06: Project management
Billing dates, change orders, and notices, run as standards that hold without anyone chasing them.
Other problems step 06 solves
Other things that go wrong
What owners ask
Unbilled change orders construction?
The field did the work. The paperwork never caught up. Ninety days later nobody can prove it happened. Unbilled change orders are the cleanest money in construction and the easiest to lose. The work is done and the cost is already spent, so the only thing between you and the revenue is a signature. Chasing that signature works early and gets harder every week you wait. By closeout, the superintendent who directed the work has moved on and your claim becomes an argument.
Which part of the system fixes this?
The step is number 06, project management. Billing dates, change orders, and notices, run as standards that hold without anyone chasing them. It's drawn from chapter 6 of CONTROL: The Construction Financial Operating System.
Is this normal for my trade?
Across the 48 trades in the benchmark reference, net profit at $1M–$5M averages 7% before taxes. If you're well under that and this page describes your month, the two are usually the same story. The published average tells you where the pack sits, and your own job costing tells you where you sit, which is the number that pays payroll.
Where do I start?
Log every change at the moment the field is directed, before pricing.
Can I fix this without touching anything else?
You can try, and it doesn't hold. Step 06 depends on step 04, estimating system. Install it ahead of that and it produces numbers nobody trusts, which is worse than the problem you started with.
