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Procore

Create a Potential Change Order (PCO)

Objective

To create a potential change order in Procore and add a Schedule of Values (SOV).

Background

  • A Prime Contract typically represents a contractual agreement between a General Contracting company and the owner. A potential change order (PCO) would outline any potential change in costs that would affect the Prime Contract.

Things to Consider

  • Required User Permission:
    • Admin' level permissions on the project's Change Orders tool.
  • Required Configuration:
    • Two (2) or three (3) tier Prime Contract setup. A single tier workflow does not use PCOs. 
    • Potential change orders can be transitioned into a Prime Contract Change Order (for two tier change orders) or into a Change Order Request (for three tier Change Orders).
    • You cannot create a potential change order for a Prime Contract until the Prime Contract status is 'Approved'.
  • If your company has enabled the ERP Integrations tool, keep these items in mind:

    • 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 prime contract 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 prime contract change orders capability has been switched on in Procore by your Integration Implementation Specialist.
    • Spectrum:
      • PCCO exports are NOT supported.
    • Viewpoint® Vista™ Integration by Ryvit:
      • PCCO exports are supported.
  • Limitations:
    • If the Change Events tool is an active tab on the project, see "Create a Prime PCO From a Change Event" in the See Also section instead of the instructions below. 

Steps

  1. Navigate to the project's Prime Contract tool.
  2. Click the Change Orders tab.
  3. Click the Create Potential Change Order button.
  4. Fill out the following fields:

    createpco.png

 

  • Number: This field automatically populates based on the number of potential change orders you have already created. By default, the number will automatically increment by one. However, you can manually enter a different number, if desired. (Note: If you manually enter a number, the next PCO that's created will automatically increment by one, based upon this specified value.)
  • Date Created: This field shows the date and time the potential change order was created. (Note: This field cannot be changed.)
  • Revision: This field displays the PCO's revision number. When a PCO is first created, its revision is zero. A PCO could have multiple revisions because of feedback from a reviewer/approver.
  • Created By: This field displays the user who created the potential change order. (Note: This value cannot be changed.)
  • Contract Company: This field displays the company that is listed in the prime contract.
  • Contract: Link to the associated Prime Contract. 
  • Title: Enter the title of the potential change order that provides a brief description of the potential change.
  • Prime Contract Change Order: This will list all existing Prime Contract Change Order that you could link the potential change order to.
  • Status: Select the current state of the potential change order:
    • Approved: The PCO has been approved. Costs are reflected as "Approved Changes" in the budget.
    • Draft: The PCO still needs to be modified before it can be submitted for review. Costs are not reflected in the budget.
    • Pending - In Review: The PCO is currently being reviewed by an approver. Costs are reflected as "Pending Changes" in the budget.
    • Pending - Revised: The PCO has been modified since its initial submission. Costs are reflected as "Pending Changes" in the budget.
    • Pending - Pricing: The PCO is pending and is currently out for pricing. Costs are reflected as "Pending Changes" in the budget.
    • Pending - Not Pricing: The PCO is pending and is not actively being priced. Costs are reflected as "Pending Changes" in the budget.
    • Pending - Proceeding: The PCO is still pending and the work is being completed. Costs are reflected as "Pending Changes" in the budget.
    • Pending - Not Proceeding: The PCO is pending and the work is not currently taking place. Costs are reflected as "Pending Changes" in the budget.
    • Rejected: The PCO was rejected. Costs are not reflected in the Budget.
    • No Charge: The PCO will be performed at no charge. Costs are not reflected in the Budget.
    • Void: The client/owner decides not to proceed. Costs are not reflected in the budget.
    • Note: These statuses reflect the budget in the ways listed above for the Procore Standard Budget View. To create or modify views, see "Set up a New Budget View" in the See Also section below.
  • Change Reason: Select the reason for the potential change order, either Client Request, Design Development, Allowance, Existing Condition, Back charge, or any options customized by the Company Administrator. See "Set Default Change Order Configuration" in the See Also section below.
  • Change Order Request: (For 3-tier change orders only).
    • None: A PCO can be linked to a Change Order Request at a later time.
    • Add to Existing: Link the potential change order to an existing change order request.
    • Create New: Create a new Change Order Request. You also have the option to create a new Prime Contract Change Order at the same time.
  • Private: Mark this checkbox if you only want the potential change order to be visible to users with 'Admin' permissions on the Prime Contract tool. 
  • Accounting Method: This field inherits the accounting method that was specified in the Prime Contract. (e.g Amount Based)
  • Description: Enter a more detailed description of the reason for the potential change order.
  • Request Received From: Select a user from the project's directory who you are submitting the potential change order on the behalf of. 
  • Schedule Impact: If known, you can provide an estimate of the number of additional days that would potentially be added to the current project if the PCO were approved.
  • Location: Use the location drop-down menu to select a location the [item] impacts. Either select from the predefined locations, or "Add a Multi-tiered Location to an Item" in the See Also section below. This location may be as general as the site location at the first tier or as specific as where on the site the contractor will be working at the second tier.
  • Reference: Reference any other tools, materials, drawings, or documents that are related to the potential change order.
  • Field Change: Check this box if the potential change order 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.
  1. Click Create.

Add a Schedule of Values (SOV)

Add a Schedule of Values if there are costs associated with the potential change order.

  1. Click the Schedule of Values subtab within the potential change order.
  2. If your project is utilizing sub jobs, any sub jobs added to the project will appear in this drop-down for your selection. All cost codes related to the sub jobs will appear in the following field. 
  3. Select the correct cost code from the cost code drop-down menu.
  4. Enter a description for the line item.
  5. Select the appropriate Cost Type. If you're using the Budget tool, the Type will pre-fill to the first type associated with that cost code on the Budget. You should only select a "non-budgeted" line item type if you would like to add a new line on the Budget.
  6. Click the + button. If the combination of the sub job, cost code, and cost type are non-budgeted, a pop-up will appear asking you to confirm you want to add this line item to the budget. If OK is selected, this line item will be added directly to the Budget with a "?" next to the line item. See "Add a Partial Budget Line Item" in the See Also section below.
    Notes
    • The Associated Line Item drop-down list only appears if your company's Procore account is integrated with Sage 300 CRE and the Prime Contract tool is enabled on the project. 
    • When adding line items to the change order's Schedule of Values (SOV), you must select an Associated Line Item for each new line item. You may designate one associated line item or use the same associated line item for multiple line items.  
  7. Repeat process for each line item you are adding.
  8. Click Save.
  9. If the line item impacts one of your Commitments, click Create CPCO (for projects with 2 or 3 tier Commitment change order configuration) or Create CCO (for projects with 1 tier Commitment change order configuration) to create an associated change on the Commitment side. See Next Steps for more information.

    Note: See "Add Financial Markup to Change Orders in the See Also section to learn how to associate financial markup with line items.