Create a Change Event with Revenue ROM

Create a Change Event with Revenue ROM

1. Navigate to the project's Change Events tool.
2. Click + Create.
3. Under General Information, enter the following:
   • Origin. Select the observation or RFI that resulted in this change event. 
   • Change Event #. The system assigns change event numbers in sequential order. If you want to customize the numbering scheme, you can update it to an alphanumeric number (e.g., A200 or CE1000) and the system will automatically use that scheme and assign 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 these statuses, see Set the Default Change Management Configurations.
     • Draft
       Select Draft to if you want to create change event but still have work to complete before setting it to open. 
     • Open
       This is the default status. Select Open to indicate the change event is active while users are managing items associated with the event.  For example, budget modifications, CPCOs, Prime PCOs, and RFQs. 
     • 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 if the cost of the change event is covered in the original contract. The Revenue ROM will default to No Revenue Expected for all line items.
     • 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. The Revenue ROM will default to Automatically Use Latest Cost for all line items. 
     • 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 5, below.
   • Update Revenue ROMs. This field appears next to the Scope field if you make a change in the Scope field. Mark this check box if you want the revenue ROM of all line items to be updated according to the new scope that you selected. This change will happen when you click the Save button on this change event.
     When changing the scope to In-Scope or TBD, the revenue ROM for all line items will be set to $0. When changing the scope to Out of Scope, the revenue ROM for all line items will be set to automatically use the Latest Cost.
   • Type. Select TBD, Allowance, Contingency, Owner Change, or Transfer to indicate the type of cost you are preparing for.  To learn how to configure change types,  see Set the Default Change Management Configurations.
   • Change Reason. Select a change reason from the drop-down menu. To learn how to configure change reasons,  see Set the Default Change Management 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 revenue ROMs. This field will default to the lowest-numbered prime contract.
   • (Optional) Click +Add Lines for All Commitments if you want to add lines for each scope of work across all subcontracts and purchase orders that are not void or terminated.  
4. Click Create. 
   Notes:
   • 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.
5. To edit the Revenue ROM amount, in save/view mode of the Change Event, or on the Change Event tool’s Detail tab, inline-edit each Revenue ROM as necessary:
   • Automatically Use Latest Cost. If this is selected, the Revenue ROM amount will match the Latest Cost amount. (Latest Cost is the existing column in the Change Event Cost section, which auto-updates to the right-most value between Cost ROM, RFQ, Commitment, or Non-Commitment.) Markup that is set up as part of the Prime Contract will calculate on this amount.
   • No Revenue Expected. If this is selected, the Revenue ROM amount will update to $0. This option is intended for In Scope Change Events that will not utilize a Prime change order.
   • Manual Entry. If this is selected, you can enter any amount. Markup that is set up as part of the Prime Contract will calculate on this amount.
6. Click Create.
   Notes:
   • Depending on the Scope selection of the Change Event, the ROM amount entered may also dictate the Revenue ROM amount. The Revenue ROM amount can be manually updated as well.
   • You can add the ROM to the Budget by following the steps in Add Change Event Columns to Budget View (Including Revenue ROM).

Add Line Items to a Change Event