Change Management

Definition: What is Change Management?

Change Management (also known as Variation Management or Claims Management) describes the systematic capture, evaluation, and administration of changes and deviations during a project compared to the originally defined budget or project plan. Particularly in the real estate and construction sectors, Change Management ensures that all modifications are transparently tracked, documented, and approved to proactively mitigate cost overruns.

Change Management made simple

At its core, change management encompasses the following processes:

• Pre-registration of changes: Changes are identified and documented at an early stage.
• Review: Evaluation regarding feasibility, impact on budget, and timeline.
• Budgeting: Financial evaluation and integration of the change into the existing budget.
• Approval: Authorization by the responsible stakeholders.
• Change Order Settlement: Final financial processing and integration into controlling.

Application Example: Change Management in the Construction Industry

In large-scale projects, such as airport construction, unforeseen events frequently arise, including construction delays, material price fluctuations, or modified client requirements. Professional change management ensures that every alteration is transparently documented, thoroughly evaluated, and visible in real-time.

Illustrative Workflow in PROBIS:

1. The project manager identifies a necessary change (e.g., additional safety measures).
2. This change is pre-recorded within PROBIS and automatically forwarded for review.
3. The specialist department evaluates the change concerning costs, timeline, and risks.
4. Upon positive evaluation, budgeting and financial approval are granted.
5. The approved change request is integrated into the overall budget and automatically processed for settlement through the system.

Digital change management, such as that offered by PROBIS, provides substantial advantages over manual procedures through its utilization of real-time data and automated processes. It minimizes human error and enhances both efficiency and transparency.

Why is change management important?

Especially in complex construction projects, there is a high risk that budget and schedule can quickly spiral out of control. Effective change management enables:

• Full transparency: A real-time overview of the status of all changes and their impact.
• Risk Minimization: Early detection and response to deviations prevent costly rework.
• Clear Communication: All stakeholders (investors, banks, project managers) consistently share the same level of information.

Project controllers, site managers, investors, and banks particularly benefit from structured change management, as they consistently require a transparent, timely overview of project developments.

Typical Challenges Without Change Management

Without professional change management, the following challenges frequently arise:

• Time-Consuming, Manual Management of Changes via Excel.
• Lack of real-time data on budget impacts.
• Delayed communication, thereby increasing the likelihood of escalations.

Benefits of PROBIS

The cloud-based PROBIS solution facilitates intelligent change management, offering:

• Real-time Cash Flow Planning: Changes immediately and visibly impact budgets and forecasts.
• AI-Powered Developer Calculation: Rapid and precise financial evaluations of all changes.
• Integrated Interfaces: Seamless connection to ERP, CRM, and other systems.
• Transparent KPI Analysis: Key figures and project developments are available at all times.

Synonyms and Related Terms

• Change Order Management
• Change Management
• Change Administration
• Project Adjustments

Conclusion

PROBIS's professional change management ensures that all project modifications are transparently tracked, promptly evaluated, and meticulously documented. This empowers project managers to maintain continuous control over costs and schedules, enabling proactive risk mitigation. For project controllers and strategic decision-makers in the real estate and construction sectors, it is an indispensable digital solution.