What is Depreciable Life?

A change order is an official amendment to a construction contract that modifies the original scope of work, timeline, or contract price. Unlike simple invoice adjustments, change orders require formal documentation and approval from all project parties before payment can be made. These modifications happen frequently in construction projects as conditions change, unforeseen issues arise, or clients request additional work beyond the original contract specifications.

For subcontractors, proper change order management can make the difference between getting paid for extra work and eating the costs. The challenge goes beyond just documenting changes—it's staying on top of approvals, tracking work that's moving forward without final sign-off, and making sure everything gets billed correctly. Too often, change orders get lost in email chains, verbal requests never get formalized, or approved changes don't make it into the next billing cycle, leaving subcontractors stuck with unbillable work. (For a detailed breakdown of change order processes and best practices, check out our change order guide.)

Siteline eliminates these change order headaches by tracking approval status in real-time, identifying which change orders are proceeding without final sign-off, and automatically incorporating approved changes into your billing schedule. With Siteline, you'll never lose sight of a change order again. Request a personalized demo to see how Siteline can protect your payments.

Direct costs in the construction industry refer to the expenses directly related to the actual building process. These essential expenditures are easily traceable to a specific project and vary based on the size or scope of work. Examples include raw materials (like concrete, steel, wood), labor costs that involve wages for the construction crew, equipment hire, and subcontractor fees. If a cost can be directly allocated to a particular construction job and affects the final total bid price for the project, it is considered a direct cost. Management of direct costs is crucial for financial efficiency and profitability.

A quantity survey, also known as a bill of quantities (BOQ), in the construction industry is a detailed analysis and estimation of all parts, materials, and costs associated with a construction project. This process is carried out by a professional known as a quantity surveyor. The surveyor evaluates the quantities of materials needed, required labor, groundwork needed, and the overall time frame of the project. They also consider other variables to provide an accurate cost analysis, like the complexity of the project, the potential risks, and the market conditions.

The main purpose of a quantity survey is to:

• Accurately estimate the cost of a construction project: By quantifying all the required materials and resources, the quantity survey helps contractors and clients estimate the total cost of the project accurately. For subcontractors specifically, quantity surveys are used to price out the cost of their portion of the work, ensuring they quote competitively while accounting for all the necessary materials and labor.
• Facilitate bidding and tendering: The quantity survey provides a standardized format for subcontractors to prepare their bids based on the same information, ensuring fair competition during the tendering process.
• Control project costs: During the construction phase, the quantity survey serves as a reference point for monitoring and controlling costs, as actual quantities used can (and should) be compared against estimated quantities.
• Manage changes: If the original scope of work changes or varies, the quantity survey serves as a baseline for evaluating and negotiating the cost implications of those changes.

A quantity survey is essential for subcontractors to accurately estimate costs, plan resources, and manage project scope. While not directly integrated, solutions like Siteline allow subcontractors to leverage quantity survey data to streamline their billing processes.

• Subcontractors can generate payment applications in Siteline that reflect completed work items and quantities from the survey, minimizing disputes.
• Some clients use Siteline's billing and A/R reports to help quantity surveyors and estimators account for contractors with longer payment cycles. They can either increase bids for those contractors to offset delays or revise terms to penalize late payments.
• Siteline also seamlessly tracks change orders, enabling subcontractors to easily update payment applications and lien waivers when project scope changes, keeping everything documented and billed accurately.

By bridging the gap between contracted scope and actual billing, Siteline enables subcontractors to focus on execution while ensuring prompt, accurate payments. Experience the power of efficient payment management tailored for subcontractors. Schedule a demo of Siteline today.