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What is a change event?

Answer

On a construction project, a change event is any change that affects the original scope of a construction project. It can be any event that affects the scope of the work to be completed, causes a change to the project schedule, or results in unexpected costs. With Procore, you can create a change event to record the event that establishes the need for a change order. It allows your project's team members and stakeholders to prepare for a cost change, before it becomes an actual cost. 

Example

Example 1: Create a Change Event to Establish a Change Order

A change event can come from many sources and is the event that establishes the change order process. Examples include:

  • Accommodating an owner request.
  • Accounting for a design flaw.
  • Addressing an unforeseen issue caused by a vague document or specification.

Example 2: Create a Change Event to Document a Subcontractor Backcharge

A change event can also be used to document a project condition that resulted in a backcharge. A backcharge refers to an amount of money that a general contractor holds back or from a subcontractor as a consequence for performing incomplete or defective work. From a general contractor's perspective, the intent of a backcharge is to recover the unforseen expenses incurred when performing corrective actions that the subcontractor was contractually obligated to perform. 

To ensure that you have fully documented the conditions that resulted backcharge, you can create a change event. Common scenarios for documenting backcharges this way include:

  • Repairing something that a subcontractor damaged.
  • Cleaning up an area that the subcontractor was obligated to clean. 
  • Replacing defective materials provided by the subcontractor. 
  • Reinstalling an incorrect installation performed by a subcontractor. 
  • Bringing a neglected issue into compliance with safety regulations. 
  • Providing unforeseen equipment rental and use costs.

With the Change Events tool in Procore, you can create a change event to record a reason for a change in a construction project. They also prepare project team members and stakeholders for the potential costs associated with the change event. After a change event is created, you can then send a Request for Quote (RFQ) to your subcontractors. Subcontractors can then respond to RFQs (or a general contractor can enter a response to an RFQ on the subcontractor's behalf). Included in the RFQ response is all the required documentation related to the change event's potential cost and schedule impact. After your subcontractor's RFQs responses are reviewed, your project team has the information it needs to proceed with creating a Potential Change Order (PCO).

Change Event Process

The tasks listed below summarize the change management process in Procore:

  1. Create a Change Event
  2. Create RFQs
  3. Review RFQ Responses
  4. Create a Prime PCO From a Change Event
  5. Create a CPCO From a Change Event

See Also

If you would like to learn more about Procore’s change events management software and how it can help your business, please visit our construction change order product page here.

 

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