How Does Construction Change Order Relate to Your WIP Report?

Are you a construction business owner looking to increase profitability and ensure accurate financial management? Then it's time to talk about change orders and their impact on your WIP schedule report.

Change order management may be the most important part of a construction company's ability to make money. A Work in Progress report (WIP report) is used to track how much money the project is making, but a change order is one of the things that may throw off how profitable it is.

Table of Content:

• What Is a change order?

• Types of change orders

• How change orders impact WIP Report?

• Contractor best practice for change orders

• Real-life Examples of change orders

• 4 key things to remember for better change order controls

• How a Bookkeeping Services Firm can improve construction accounting and financial management

• Conclusion

WIP Report: What Is a Change Order?

What exactly is a change order? It's an amendment to a construction contract that changes the contractor's scope of work, including cost and schedule changes.

As people's lives are always changing, so are change orders for contractors. As a contractor, it's crucial to track all change orders accurately so that you can correctly get paid for unpaid invoices.

>> How Does WIP Report Work in Construction Accounting?