Introduction
In the construction industry, managing unbilled change orders can become a major obstacle, especially when working with a network of vendors and subcontractors. Without clear pathways for tracking these changes, companies face issues like delayed billing, missed revenue opportunities, and strained cash flow.
APARBooks, an accounting platform specifically designed for the construction sector, has developed a solution to simplify and optimize this process. Here’s how we helped Elite Builders turn a chaotic system into an efficient one with our real-time tracking tools.
The Challenge: Tracking Unbilled Change Orders with Vendor and Subcontractor Invoices
In any construction project, changes to the original plan are inevitable. These change orders, from adding materials to increasing labor hours, create a cascade of bills from vendors and subcontractors that need to be processed and billed to the project owner. However, without a clear method for tracking these change orders, invoices risk slipping through the cracks, resulting in unbilled work and potential financial strain.
Elite Builders experienced this while managing a commercial office build. Midway through, the client requested adding glass partitions, which required additional materials and labor. However, the project manager forgot to log it as a change order. When the glass supplier and subcontractor sent their invoices, Elite Builders had no record of connecting this expense to a client-approved order, risking unpaid work and potential disputes with the client.
The Solution: Real-Time Change Order Tracking with APARBooks
To address these tracking issues, Elite Builders adopted APARBooks, which provides a streamlined process for managing unbilled change orders:
Real-Time Change Order Tracking
APARBooks lets users track all change orders under each project as they happen. Once a vendor or subcontractor submits an invoice, it’s logged into the system and associated with the correct project and client.
Auto-Generated Change Order Files
For every new change order, APARBooks automatically creates a PDF file for easy printing and sharing. This ensures that documentation is always on hand, minimizing potential confusion and disputes.
Convenient Communication Tools
With APARBooks, users can send change orders to the project owner with a simple click of “Send to Owner” or manage internal updates through “Mark it Sent” or “Mark it Approved” options. This real-time communication streamlines approval processes and keeps everyone aligned.
Instant Snapshot of Project Costs
APARBooks offers a consolidated view of project costs, including unbilled change orders, giving project managers and accountants a clear financial snapshot at any time.
Benefits
By implementing APARBooks, Elite Builders experienced significant improvements in their workflow. The automated tracking system allowed them to spend less time on manual documentation and communication, freeing up resources for high-priority tasks and streamlining processes. With real-time tracking and an intuitive communication interface, Elite Builders saw a reduction in billing bottlenecks, leading to faster payment processing and a noticeable improvement in cash flow.
Additionally, APARBooks provided the project team with an instant, clear overview of all change orders and project costs, enhancing financial control and reducing the risk of overlooked expenses. This new efficiency allowed Elite Builders to stay financially organized and maintain stronger client relationships, positioning them to handle future projects with greater confidence and clarity.
Impact
Without APARBooks, Elite Builders risked financial losses, as the unbilled glass partition installation could have resulted in thousands of dollars in unpaid work. Potential disputes with the client could have delayed project completion, leading to a ripple effect of missed deadlines and increased costs.
By implementing APARBooks’ tools, Elite Builders turned a complex challenge into a streamlined, manageable process. With real-time tracking and auto-generated documents, APARBooks empowered the project team to stay organized, communicate efficiently, and bill clients accurately, building a foundation of trust and transparency.
