Customer Relations Playbook

EPOS (EXTRA PURCHASE ORDERS) When we contract with Trade Partners/Suppliers to build our homes, our Construction Services team works with Purchasing to generate Purchase Orders (POs) and linking POs with the respective payable BuildPro task in our schedule templates. Occasionally, there is a need to generate an EPO in order to pay a Trade for an unforeseen issue. EPO Definition • Extra Purchase Order • Also known as a VPO (Variance Purchase Order) • Needed whenever additional work or material is needed on a lot or home that is not included in the initial takeoff • Examples: - Warranty repairs - Warranty backcharge EPO Best Practices • An EPO must be created, approved, and reconciled in order for a Trade to begin work. - Please make sure the DIRECT method is used to ensure the correct account code is selected. Wrong account codes can lead to pending reconciliation, therefore holding the EPO from being paid to the Trade. - Please make sure the SKU box is left blank. Putting info in the SKU box can lead to pending reconciliation, therefore holding the EPO from being paid to the Trade. • At Century, we strive to approve EPO’s efficiently so that our Trade Partners/Suppliers have approval to start work as soon as possible. As such, 7 days is the goal from EPO creation to final approval in the system. Depending on the urgency, an EPO must be approved in 1 day (alert your manager the importance so that any large dollar EPOs can be approved through a Regional President/Executive Vice President immediately). EPO Approvals • EPO approval levels are created, maintained, and changed by the National Operations team through requests from the Century Toolbox. • Minimum approval is the lowest dollar amount an EPO has to be in order to reach that person’s level to view and either approve or reject it. • A report on pending EPOs is created and sent out once a week. - This detailed report shows in great detail the number of EPO’s pending approval/rejection according to the division and level the EPO’s are pending, along with many other pieces of useful data.

CUSTOMER RELATIONS PLAYBOOK | Customer Relations Process | 45