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1 min read

Capture All Your Profit from Extra Work

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As a contractor, you know what's coming as soon as your project starts...changes start coming in. Many contractors utilize a tag-book / ticket-book of physical paper forms that capture and track the extra work, but a major problem is the profit that you're leaving behind by doing it manually or without a field change order solution.

Change orders come with a certain level of frustration in the industry with people within the construction industry.  Some owners feel they are being charged for every little thing, some contractors wonder if they should absorb the cost to avoid a negative impression in their market, some specialty trades don't want to upset their GCs, but overall, not many can argue that it's not fair to simply be compensated for the extra work that was requested that was outside the scope of the original contract.  

We don't believe that a contractor who is asked to perform extra work should have to give their services away or absorb costs for which they are rightfully entitled per the contract.  To the contrary, charging for valid items goes without saying from an ethical standpoint.  

One aspect of extra work that escapes many contractors is outright missed by contractors wherein they don't capture many items from the extra work to the extent they should be.  Often times, equipment rental, parking, masks, water, stock/scrap, and supervision are often missed. When all these items are considered, a considerable amount of money is absorbed by the contractor performing the extra work, on average to the tune of $200 per extra work ticket / tag.  PeerAssist heard from a great case study of a contractor who deeply analyzed their improvement and that contractor found the holy grail of value for their investment with 5,000 tickets/tags annually at an average of $200 not given away, which resulted in $1M+ of cost that would have otherwise been absorbed. 

What would you do with an additional $1M of profit that you had earned?