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Procore

Create a Change Event

Objective

To create a change event using the project's Change Events tool.

Background

Creating a change event allows you to prepare for the cost of a change before it becomes an actual cost. For example, if a project manager is anticipating the need to change the paint colors of a project, he or she can start preparing for that cost by creating a change event, which describes the estimated financial cost of the change as well as which cost codes will be affected. After creating a change event, they can then create an Request for Quote (RFQ), which is sent to the appropriate subcontractors for pricing. When RFQs are created and responded to by the assigned subcontractors, change orders can then be created based upon the submitted quote.

Things to Consider

Steps

  1. Navigate to the project's Change Events tool.
  2. Click + Create Change Event.
  3. Under General Information, enter the following:
    • Origin. Select the tool of origin for the change event. Selections include Observation, RFI, Meeting, or Instruction
    • Change Event #. Procore automatically assigns a number to the new event in numerical order.
      Notes:
      • To customize the numbering scheme, you may update it to an alphanumeric number (e.g., A200 or CE1000). 
      • The system automatically uses the customized numbering scheme and assigns subsequent numbers in sequential order. 
    • Title. Enter a descriptive title for the change event.
    • Status. Select the status of the change event from this list:
      Note: To configure custom statuses for change events, see Set Default Change Order Configurations.
      • Open. Select Open to indicate the change event is active while users are managing items associated with the event (e.g., budget modifications, commitment PCOs, Prime PCOs), and RFQs). This is the default status.
      • Closed. Select Closed after all required change orders and RFQs have been created and the change event is considered complete.
      • Pending. Select Pending if the change event requires approval before it can be closed out.
      • Void. Select Void to indicate no change resulted from the event.
        Notes:
        • It is recommended that you choose this status instead of deleting the change event. This ensures the system keeps a record in the Change Events log page for future reference.
        • To view voided events, select Void or All (Include Void) from the Add Filters menu on the Change Events log page.
    • Scope. Select one of the available options from the list.
      • In Scope. Select this option is the cost of the change event is covered in the original contract. 
      • Out of Scope. Select this option if the cost of the change event is NOT covered in the contract. In most situations, a change order will be submitted to the owner/client as an additional cost. 
      • TBD. Select this option if the cost of the change event has yet to be determined. 
        Notes:
        • The scope setting affects the default Revenue ROM for new line items added to this Change Event. Revenue ROM for each line item can be viewed and edited on the save/view mode of the change event, or on the Detail tab of the Change Event tool. 
        • If the scope is updated after the Change Event is created, a checkbox will appear, giving you the option to “Update the Revenue ROMs” for all existing line items to match the defaults for that scope. This box is checked by default, uncheck it if you wish to preserve your existing Revenue ROM values.
        • If the change event has a mix of different scopes, select the scope that applies to the majority of line items. For example, if the Change Event has 10 line items, and 8 line items are Out of Scope and 2 line items are In Scope, set the Change Event scope as Out Of Scope so all 10 line items default to Automatically use Latest Cost, then save and inline edit the Revenue ROM on the 2 in scope line items to No revenue expected; see Step 7, below.
    • Type. Select TBD, Allowance, Contingency, Owner Change, or Transfer to indicate the type of cost you are preparing for.  
      Note: To configure types for change events, see Set Default Change Order Configurations.
    • Change Reason. Select a change reason from the drop-down menu.
      Note: To configure change reasons for change events, see Set Default Change Order Configurations.
    • Description. Describe the event that may result in a change in costs. 
    • Attachments. Attach any relevant files. 
    • Prime Contract (For Markup Estimates). Select a prime contract to indicate which prime contract’s markup settings should be used to calculate the markup on ROMs. This field will default to the lowest-numbered prime contract.
  4. COMING SOON Click Add Line. Then add a line item to the change event as follows:

    demo-add-line-item.gif
     
    1. Budget Code
      Click this cell and select a code from the drop-down list. To create a new code, click Create Budget Code. Then choose a Cost Code and Cost Type from each list. A budget code lets you categorize your line items by Cost Code, Cost Type, and Sub Jobs (if enabled, see Enable Sub Jobs).
    2. Description
      Click this cell and type a description of the change event line item.
    3. Vendor
      Select a vendor from the drop-down list. 
    4. Contract
      Select the contract number from the drop-down list. 
    5. Cost ROM
      Enter a numeric estimation of the Cost Rough Order of Magnitude (ROM). This entry has NO financial impact on values in other Procore tools. You can add the ROM to the Budget by following the steps in Add a Cost ROM and RFQ Source Columns to Budget View. Note that if you follow those steps to show the ROM value in the budget, and the change event line item ends up having no cost, you will need to zero out the ROM to remove it from the budget.
  5. (Optional) Add lines for each scope of work across all subcontracts and purchase orders that are NOT Voided or Terminated by clicking Add Lines for All Commitments. Then edit the line items as needed.
  6. Click Create
    If the combination of the sub job, cost code, and cost type are non-budgeted, a pop-up will appear asking to confirm to add these line items to the budget. If OK is selected, these line items will be added directly to the Budget with a "?" next to each line item. See Add a Partial Budget Line Item.

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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