What is a Milestone?

Back Charges are bills sent to subcontractors or vendors for unforeseen work that a general contractor or project manager had to complete on their behalf within the construction industry. This generally occurs when the subcontractor or vendor fails to complete their work scope to the specified standards, misses deadlines, or omits parts of their contracted responsibilities, and someone else must step in to rectify the issue. Therefore, the party who had to complete or redo the work sends 'back charges' to the original contractor, expecting reimbursement for labor, services, materials, or other costs involved in the completion of the task. They serve as a form of financial protection for the companies against contractual breaches in the construction projects.

A Prevailing Wage refers to the hourly rate, benefits and overtime, paid to the majority of workers, laborers, and mechanics within a particular area. In the construction industry, it's the standard wage contractors and subcontractors must pay their workers when working on government projects. It's derived from the Davis-Bacon Act of 1931 which mandates that workers on federal construction projects must be paid at least the prevailing wages in the local area. The goal is to maintain fairness and prevent undercutting of wages. It includes various types of construction jobs from carpentry, electricians, ironworkers to bricklayers. The rate differs from location to location and job to job.

A request for change order (RFC) is a formal document that subcontractors submit to general contractors when they encounter work that falls outside their original contract scope. Unlike the actual change order, which is the approved contract modification, an RFC is the preliminary request that kicks off the approval process. These requests typically include details about the additional work, justification for why it's necessary, cost estimates, and timeline impacts.

RFCs are critical for protecting subcontractors from performing unbillable work, but they need to be submitted quickly when field conditions change. The challenge is that field teams often discover the need for additional work while actively working on-site, but the documentation and approval process typically happens back in the office. This disconnect can create delays that either hold up project progress or pressure subcontractors to proceed with work before getting proper approval.

Siteline streamlines this process by bridging the gap between field and back office teams, making it easier to document scope changes as they happen and convert them into well-organized requests. See how Siteline can improve your RFC process—request a personalized demo here.