In most many small companies, the procedures for handling extra work is not very well established. In order to make sure that everyone on the jobsite complies with the paperwork for extra work is to implement an extra work ticketing system. This means, whenever an extra work will be performed, it must go through the change order process and be approved by the entity who will actually pay for it.
The tickets must be numbered, be assigned proper WBS codes, recorded in change order logs, and that is how they can be tracked. Having an approval process in this manner will also prevent gold plating or scope creep. Gold plating means, providing extra work even if it is not authorized. Scope creep means changes performed at the jobsite without any formal approval process.
In a properly handled project, that is run by following proper project management standards, this step is already within the monitoring and controlling process, and the elements necessary to apply this procedure is created during project planning stage. It means, after consulting with all stakeholders of the project, a project budget and schedule is created with all standardized WBS codes. After that, all time, cost and resources can be tracked though these WBS codes. This also includes extra work. After an extra work is requested, it is first approved by the owner, and then, it can be executed in the field. The applicable costs are assigned to proper WBS codes and included into the project budget and schedule by the means of costs and resources.
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