(BETA) Create a Change Event with Revenue ROM

Objective

Create a change event for a project that is using revenue ROM.

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 RFQ (Request for Quote), 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

• Required User Permissions: 'Standard' or 'Admin' on the project's Change Events tool.
• You can either create a change event from the Change Events tool or from an individual RFI. 
• Available on Procore's iOS and Android mobile application.

Steps

1. Navigate to the Project level Change Events tool.
2. In the right pane, click the + Create Change Event button.
3. Fill out the following fields:

• Origin: You can select an existing Observation or RFI in Procore that the change event originated from. To create a change event directly from an observation or RFI, see "Create a Change Event from an Observation" and "Create a Change Event" in the See Also section below.
• Change Event #: This field will automatically populate with the next number in your change event sequence. However, you can also manually change the number, as well as create a custom alphanumeric number (e.g. A200).  Once a custom number has been added, the next change event created will automatically be given the next sequential number.
• Title: Provide a descriptive title for the change event. The change event's subject is displayed as the title in the list view.
• Status: Select Open, Closed, or Void to indicate the status of the change event. To learn how to configure change event statuses, see "Set Default Change Order Configurations" in the See Also section below.
  • Open: This is the default status when you first create a change event. This indicates that the change event is active, and users can manage items within the event (RFQs, Budget Modifications, Commitment PCOs, and Prime PCOs).
  • Closed: Set the change event to this status once all necessary change orders and RFQs have been created and the event is considered complete.
  • Void: Set the change event to this status if no change came from the event. Setting the change event as void is an alternative to deleting the change event as a record will be kept on the log page for future reference.
    Note: If you mark a change event as Void, that change event will be hidden on the Change Events Log page. To view voided events, select 'Void' or 'All (Include Void)' from the Status list under Filters on the Change Events log page.
  • Pending: Set the change event to Pending if the change event requires approval before it can be closed out.
• Scope: Select In Scope if the cost is covered in the original contract. Select Out of Scope if the cost was not covered in the contract, signifying that the change order will be likely be submitted to the client as an additional cost.
  • The Scope setting will affect 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 Change Event tool’s Detail tab.
  • If In Scope or TBD is selected, the Revenue ROM will default to No revenue expected for all line items.
  • If Out Of Scope is selected, the Revenue ROM will default to Automatically use Latest Cost for all line items.
  • This only applies when the Change Event is first created. If the Scope is updated after the Change Event is created, the Revenue ROM amount will not update; however, it can be manually updated.
  • If the Change Event will have 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.  To learn how to configure change types, see "Set Default Change Order Configurations" in the See Also section below.
• Change Reason: Select a change reason from the drop-down menu. To learn how to configure change reasons, see "Set Default Change Order Configurations" in the See Also section below.
• Description: Describe the event that may result in a change in costs. 
• Attachments: Attach any relevant files. 

4. Once the General Information has been filled out, you can start creating change event line items by selecting which cost codes are impacted by doing the following:
   1. Click + Add New Line.
      Note: Steps #2-8 below do not need to be completed in the following order. For example, if you select a vendor for a change event line item first, the line will automatically display all matching contracts, cost codes, and categories.
   2. If applicable, select a subjob from the drop-down menu.
   3. Select the impacted cost code from the drop-down menu. You will see budgeted cost codes and non-budgeted cost codes in this list. Note: You will only be able to select a category that is already scoped on the budget.
   4. Select a Line Item Type.
   5. Enter a description.
   6. Select a vendor from the drop-down menu.
   7. Select the contract from the drop-down menu.
   8. Enter a Cost ROM (Rough Order of Magnitude). A ROM is the numeric estimation of what the cost could be and has no financial impact on any of the other tools in Procore.
      • 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)" in the See Also section below.
5. (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.  
6. Click Create to create the change event. 
   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" in the See Also section below.
7. 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.

See Also 

• Set Default Change Order Configurations
• Create a Change Event from an Observation
• Delete a Change Event
• Add a Partial Budget Line Item
• Add Change Event Columns to Budget View (Including Revenue ROM)