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What are the different change order tiers?

When configuring your Prime Contract change order tiers or Commitment change order tiers, you have the option to select from either a single tier, two tier, or three tier change order configuration. Note that you can not change the number of tiers if you have already created a prime contract change order or a commitment contract change order.

Prime Contract Change Order Tiers

diagram-prime-contract-change-orders.png

To configure change order tiers for Prime Contracts, click the Prime Contract tab and select Configure contract settings in the right pane. You can then select 1, 2, or 3 from the Number of Prime Contract Change Order Tiers drop-down.
 

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  • Single tier: Single tier change orders consist solely of a Prime Contract Change Order (PCCO) which can be sent for approval.
  • Two tier (this is the defaulted configuration): Two tier change orders begin with the creation of a Potential Change Order (PCO). Potential Change order are then rolled up and grouped into a Prime Contract Change Order which can be sent for approval. This is the recommended setup if you do NOT have a requirement to group multiple approved change orders for the month into a combined change order for final signature to be included on the billing.
  • Three tier: Three tier change orders begin with the creation of a Potential Change Order (PCO). Individual or grouped PCOs are then bundled into Change Order Requests (COR). Often times the CORs are submitted for approval, and the approved CORs are then grouped into Prime Contract Change Orders (PCCOs) at the end of the month for a final approval and contract increase. The PCCO is the only document that will allow you to bill for a change order and increase your contract value.  This is the recommended setup if you DO have a requirement to group multiple approved change orders for the month into a combined change order for final signature to be included on the billing.

Commitment Change Order Tiers

diagram-commitment-change-orders.png

To configure change order tiers for Commitments, click the Commitments tab and select Configure contract settings in the right pane. You can then select 1, 2, or 3 from the Number of Commitment Change Order Tiers drop-down. 

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  • Single tier: Single tier change orders consist solely of a Commitment Change Order which can be sent for approval.
  • Two tier: Two tier change orders begin with a Commitment Potential Change Order (CPCO). Commitment Potential Change Orders are then rolled up and grouped into a Commitment Change Order (CCO) which can be sent for approval. In a typical General Contractor scenario where the commitments are subcontractors, this is the recommended setup as it will allow you to include multiple, discrete changes into a single CCO.
  • Three tier: Three tier change orders begin with the creation of a Commitment Potential Change Order. Individual or grouped CPCOs are then bundled into Change Order Requests (CORs). Change Order Requests are then grouped into Commitment Change Orders (CCOs) which can then be sent for approval. The CCO is the document that will actually increment the contract price and allow a change order to be included in a billing.

 

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Last modified
09:29, 24 Mar 2017

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