Create a Potential Change Order for a Client Contract from a Change Event

Objective

To create a potential change order for a client contract from a change event.

Background

If your company has enabled the Change Events tool and configured your project to use a two (2) tier change order structure, the change event process requires you to create a potential change order. Then, you will create the Client Contract Change Order from the Client Contracts tool. For details about the tiers, see What are the different change order tier settings in Project Financials? Note: Procore recommends that you create a Potential Change Order only for change event items that are Out of Scope and must be submitted to the client/owner for approval.

When you create a Potential Change Order, the Schedule of Values (SOV) will populate with the Revenue ROM values. If you have the Revenue ROM functionality hidden, the value will depend on the scope of the change event. For In Scope or TBD scope change events, the PCO will populate with $0. For Out of Scope change events, the PCO will populate from the RFQ if the status of that RFQ is Pending Final Approval. If there is no RFQ with that status, it will populate from the Cost ROM. For more information about RFQ statuses, see What are the different RFQ statuses and how do they affect cost and change order amounts?.

Things to Consider

• Required User Permissions:
  • 'Standard' level permissions or higher on the project's Change Events tool.
    AND
  • 'Standard' level permissions on the project's Client Contracts tool and the 'Allow Standard Level Users to Create PCOs' configuration setting must be enabled on the Client Contracts tool. See Configure Settings: Client Contracts.
• Additional Information:
  • Depending on the change order tier configuration setting configured for the Client Contracts tool, potential change orders can be transitioned into one (1) of the following items:
    • For two (2) tier change orders, a client contract change order.
    • For three (3) tier change orders, a change order request. 
    • To learn more see, What are the different change order tier settings in Project Financials?

Prerequisites

• The Change Events tool must be turned ON on the project. See Add and Remove Project Tools.
• The two (2) tier change order configuration settings must be turned ON the Client Contracts tool. See Configure the Number of Client Contract Change Order Tiers.
• The project's client contract must be in the 'Approved' status. See Approve a Client Contract.

Steps

1. Navigate to the project's Change Events tool.
2. In the table, mark the checkboxes for one (1) or more change event line item(s) to include in the new potential change order. 

    Note

   Procore creates the potential change order's Schedule of Values (SOV) using the selected change event line item(s). 
3. Click the Bulk Actions menu and choose the Create Client PCO option. Then choose the appropriate contract option from the sub menu. 
4. In the 'New Potential Change Order' page, complete the following data entry:

   • Sign with DocuSign®
     If you have enabled the Procore + DocuSign® integration (see Enable or Disable the DocuSign® Integration on a Procore Project), a checkmark appears in this box by default. If you do NOT want to collect signatures with DocuSign®, remove the mark.

      Tip

     How do you collect signatures with DocuSign? After the data entry for the item is complete, Procore recommends changing the item's status to 'Out for Signature' before clicking the Complete with DocuSign button to launch the DocuSign® application. If you have not previously signed in, you will be prompted to Log In to DocuSign®. Once you are signed in, you can prepare the DocuSign® envelope for signatures. After the signature process is complete, Procore automatically changes the status of the item to 'Approved' and marks the item as 'Executed'. To learn more, see DocuSign®.

   • #
     Accept the default number, enter a new number, or create a custom numbering scheme for this change order and future ones. 

      Notes

     • Procore automatically assigns the item a new number in sequential order. For example; 001, 002, 003, and so on.
     • To use a custom numbering scheme, enter any set of alphanumeric characters. Procore automatically assigns new numbers in sequential order using your custom scheme. 

   • Date Created. Shows the date the change order was created. 

   • Revision
     If you revise a change order later, you can enter the revision number here.

   • Contract Company
     Shows the name of the contract company selected in the contract. 

   • Contract
     Automatically includes a link to the contract associated with this change order. 

   • Title
     Enter a descriptive name here. 

   • Status
     Select the current status of the change order. Procore automatically places the change order in the 'Draft' status. To learn more, see What are the default statuses for change orders in Procore?

   • Client Contract Change Order 
     Choose one (1) of these option buttons: 

     • None. You can update this selection at a later time. 
     • Add to Existing. Choose this option to link the new potential change order to an existing change order.
     • Create New. Choose this option to link the new potential change order to a new change order.

   • Change Reason. This field automatically populates the change reason from the selected change event However, you can update the reason for the potential change order as needed by selecting one from the list. Selections include Client Request, Design Development, Allowance, Existing Condition, Backcharge, or any customized options added to Procore by your company's Procore Administrator.

   • Private
     Mark this checkbox if you want the item to be private. This means it is only visible to users with 'Admin' level permissions on the contract (or funding). 

   • Description
     Enter a more detailed description of the change order. 

   • Executed
     Mark this checkbox after the change order is fully executed.

   • Signed Change Order Received Date
     This field is blank on a new change order. After the signed change order is received, select the date from the calendar control. 

   • Request Received From
     Select the appropriate project user from the drop-down list. 

   • Location. Select a multi-tiered location from this list. If your Project Administrator has enabled the multi-tiered location functionality on the project, you may also be able to create a new location to add the master list of project locations. To learn more, see How do I add a multi-tiered location to an item?

   • Schedule Impact
     If this change order is expected to impact the construction project's schedule, enter the estimated number of additional days this would add to the schedule. 

   • Field Change
     Mark this check the checkbox if the potential change order is the result of a field change. 

   • Reference
     Add any details about the potential change order in this field. 

   • Paid in Full
     Mark this check box if you have received payment for this change. 

   • Attachments
     Add any relevant document or image as a file attachment. You can attach multiple files using these methods:

     • Click Attach File(s) and select the files to add from your computer or another Procore tool.
       OR
     • Use a drag-and-drop operation on your computer to add the file attachments to Procore. 

      Note

     If the Request for Quote (RFQ) feature is turned ON, you can configure the Change Events tool to include any attachments added to a reviewer's RFQ response. For instructions, see Configure Settings: Change Events.
5. Click Create. 

    Notes

   • The Associated Line Item drop-down list only appears if your company's Procore account is integrated with an integrated ERP system and the Prime Contracts tool is active on the project.
   • When adding line items to the change order's schedule of values, you must select an Associated Line Item for each new line item. You can designate one (1) associated line item or use the same associated line item for multiple line items.  

See Also 

• Add and Remove Tools on a Project
• What are the different change order tier settings in Project Financials?
• Configure the Number of Client Contract Change Order Tiers
• Approve or Reject Client Contract Change Orders
• Set Default Change Management Configurations