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Create a Commitment Potential Change Order

Objective

To create a Potential Change Order (PCO) for a commitment and complete its Schedule of Values (SOV).

Background

When a change to the scope of work or the original commitment contract amount occurs during a construction project, the change management process begins. You can create a PCO if your company's Procore Administrator configures the Commitments tool with the two (2)- or three (3)-tier change order configuration setting. See What are the different change order tier settings in Project Financials?

Things to Consider

  • Required User Permissions:
  • Additional Information:
  • For companies using the icon-erp-synced2.png ERP Integrations tool: Show/Hide  
    • Integration by Procore: Viewpoint® Spectrum®:
      • To sync data:
        • The Date field on a PCCO is required.
        • The Billing Item Code on a PCCO must be 10 characters or less.
    • Integration by Ryvit: Viewpoint® Vista™
      • PCCO exports are supported.
    • QuickBooks®
      • PCCO exports are NOT supported.
    • Sage 100 Contractor®
      • PCCO exports are NOT supported.
    • Sage 300 CRE®:
      • Title. The PCCO title must be 30 characters or less. 
      • Number (#). The PCCO number be five (5) characters or less. 
      • Status. The commitment must be in the Approved status.
      • Associated Line Item. For each line item that you add to the change order's Schedule of Values (SOV), you may designate one (1) associated line item for each change order line item or the same associated line item for all change order line items.  Note: The Associated Line Item list is only visible and available when the ERP Integrations tool has been configured to work with Sage 300 CRE® and the export commitment change orders capability has been switched on in Procore by your Integration Implementation Specialist.
    • Limitations:
      • To create a change order for a commitment, the commitment must be in the 'Approved' status.

Prerequisites

Steps

Create a Potential Change Order

  1. Navigate to the project's Commitments tool.
  2. Locate the commitment contract to work with. Then click its Number link.
  3. Click the Change Orders tab.
  4. Click Create Potential CO.
    create-potential-change-order-from-prime-contract.png
  5. Complete the following fields:
    • 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®.
    • Number
      Accept the default number, enter a new number, or create a custom numbering scheme.
       Tip
      How are numbers assigned? To learn how Procore assigns numbers and to understand your custom numbering options, see How are commitments, contracts, and changes numbered in Procore?
    • Date Created
      Shows the creation date and time. This value cannot be changed.
    • Revision
      Shows the revision number. The first version is zero (0), subsequent revisions are assigned in sequential order. A PCO might have several revisions, depending on its reviewer/approver feedback.
    • Created By
      Shows the Procore user who created the PCO.  This value cannot be changed.
    • Contract Company
      Shows the name of the company responsible for performing the work on the contract.
    • Contract
      If you have been assigned access permissions to the Commitments tool, click this link to open the contract. 
    • Title
      Enter a title for the PCO in this box. 
    • Status
      Select the current state of the PCO. To learn more, see What are the default statuses for change orders in Procore?
    • Commitment Change Order
      Choose one (1) option button. 
       Note

      This setting is only required when the Commitments tool is using the 3-Tier change order configuration setting. See What are the different change order tier settings in Project Financials?

      • None. A PCO can be linked to a COR at a later time.
      • Add to Existing. Link the PCO to an existing COR.
      • Create New. Create a new COR. You also have the option to create a new change order at the same time.
    • Change Reason
      Select the reason for the PCO, either Client Request, Design Development, Allowance, Existing ConditionBack Charge, or any additional options created for your specific environment by your company's Procore Administrator. See Set the Default Change Management Configurations.
    • Private
      Mark this checkbox if you only want the PCO to be visible to users with 'Admin' permissions on the Commitments tool. 
    • Accounting Method
      This field inherits the accounting method that was specified in the commitment contract. See How do I set the accounting method for a contract or funding?
    • Description
      Enter a more detailed description of the reason for the PCO.
    • Request Received From
      Select the Procore user for whom you are submitting the PCO. 
    • Schedule Impact
      If known, provide an estimate for the additional number of days required to complete work when the PCO is approved.
       In Beta
      Note to users participating in the 'Subcontractor Estimated Completion' limited release beta program. When a user places a change order in the 'Approved' status and it includes a value in 'Schedule Impact' field of the change order, Procore automatically updates the 'Estimated Completion Date' field in the commitment contract by the number of days entered. To learn more about this program, see Commitments: (Beta) Subcontractor Estimated Completion Date.
    • Location
      Use this drop-down list to select a location related to the PCO. You can select an existing location or Add a Multi-tiered Location to an Item. 
    • Reference
      Add any other important tools, materials, drawings, or documents to use as a reference for the PCO. 
    • Field Change
      Check this box if the PCO requires a field change.
    • Paid in Full
      Check this box to indicate you have received payment for this change. 
    • Attachments
      Select and add any relevant documents.
  6. Click Create & Enter SOV.

Add a Schedule of Values to a Potential Change Order

When there are costs associated with a PCO,  you must add line items to the SOV.

  1. In the Schedule of Values tab, click Add Line
     Notes
  2. For contracts using the Amount Based accounting method:
    • Change Event Line Item
      If you have change events enabled, you can select a change event line item if the commitment needs to be linked to a change event.
    • Budget Code
      Select a budget code from the list or click Create Budget Code to create a new one. See What is a budget code in Procore's WBS? 
    • Description
      Enter a description for the line item. For example, type: Monthly Service Fee
    • Amount
      Enter the amount of the cost.
    • Billed to Date
      The system automatically calculates the amount billed on the commitment up to the current date.  
    • Amount Remaining
      Enter the amount that has NOT been billed to the current date. 
    • Tax Code
      Enter a tax code to use for this line item. This field only appears if you have enabled the tax codes feature. See How can I use tax codes on a project?
  3. For contracts using the Unit/Quantity Based accounting method:
    • Change Event Line Item
      If you have change events enabled, you can select a change event line item if the commitment needs to be linked to a change event.
    • Budget Code
      Select a budget code from the list or click Create Budget Code to create a new one. See What is a budget code in Procore's WBS? 
    • Description
      Enter a description for the line item. For example, type: Monthly Service Fee
    • Qty
      Enter the number of units.
    • UOM
      Enter the Unit of Measure (UOM).
       Notes
    • Unit Cost
      Enter the Unit Cost in the box provided.
    • Amount
      The system automatically calculates the subtotal for you, based on the QtyUOM, and Unit Cost entries. 
  4. Click Save.
    A GREEN banner appears to indicate that the Schedule of Values is saved. 
     Important
    If you assigned a budget code that is not currently represented on your budget or if leave the budget code field blank, a confirmation message appears. To proceed, you must click OK to acknowledge the message. This action adds the corresponding line item(s) to your project's budget as non-budgeted line items. 

 

If you would like to learn more about Procore's prime contract software and how it can help your business, please visit our construction contract management software product page icon-external-link.png.