When creating a new change order from a change event, or linking a change event line item to an existing change order, the schedule of values (SOV) in the change order will populate with a value from the change event line item source. This article summarizes how the value is determined within the change event line item so you will know which values will carry over into the change order.
Commitment Change Order
When creating or linking a commitment change order or potential change order, the Latest Cost amount for each selected change event line item will carry over into the change order SOV.
If a potential change order or prime contract change order is linked to the change event before linking a commitment change order, the Latest Price amount will override the latest cost and pull through to the commitment change order SOV.
If this happens, you can edit the value for the SOV line item on the change order after it is created/linked.
Prime Contract Change Order
When creating or linking a prime potential change order or prime contract change order, the Latest Price amount for each selected change event line item will carry over into the change order SOV.
How are the Latest Price and Latest Cost Values Determined?
The latest price is determined by the most up-to-date value in the revenue portion of the change event line item columns. This includes the ROM and Prime/Prime PCO columns. The Revenue ROM value is used to determine the initial latest price value. Once a 'Prime/Prime PCO' value has been added, the latest price will update to match the 'Prime/Prime PCO' column.
It is possible to have the 'Revenue ROM' value match the latest cost. See How Change Event Scope Impacts Revenue ROM below.
The latest cost is determined by the most up-to-date value in the cost portion of the change event line item columns. This includes the ROM, RFQ, and Commitment columns. The cost ROM determines the initial value of the latest cost. After that, an RFQ value and finally a commitment value is used to set the latest cost on a change event line item.
How Change Event Scope Impacts Revenue ROM
There are three different Scope options for a change event in Procore. See What are the default 'Scope' options for change events in Procore?
- In Scope
- Out of Scope
Each setting will change the behavior of the revenue ROM column of the change event's line items.
When creating a change event, choosing 'Out of Scope' will set the revenue ROM column to Automatically use Latest Cost. This means that the revenue ROM will always match the number currently set in the Latest Cost column.
If the scope is set to 'TBD' or 'In Scope', the revenue ROM column will automatically be set to zero.
At any time, you can override these settings by clicking the number in the revenue ROM column and adjusting the revenue ROM calculation method. The scope does not need to be changed to adjust this setting.
If you wish to change the scope of a change event after it has been created, you are prompted with a check-box asking you if you would also like to update the revenue ROMs of your change event to match the default revenue ROM calculation method for the new scope.
What if the Revenue ROM, Latest Price, Latest Cost, and Over/Under column settings are turned OFF in the Configure Settings of the Change Events tool?
- Regardless of this setting, Revenue ROM is used as the default value for lines added to prime contract change orders.
- If these columns are not displayed, Revenue ROM is set automatically based on the scope setting of the change event. Note: TBD and In Scope change events will have the Revenue ROM values of $0, Out of Scope change events will automatically follow the latest cost/