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Create a Prime Potential Change Order (Prime PCO)

Objective

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

Background

When a change to the scope of work or the original prime 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 Prime Contracts tool with the two (2)- or three (3)-tier change order configuration setting. See What are the different change order tiers?

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 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.
    • Limitations:
      • To create a change order for a prime contract, the prime contract must be in the 'Approved' status.

Prerequisites

Steps

Create a Potential Change Order

  1. Navigate to the project's Prime Contracts tool.
  2. Locate the prime 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:
    • Number
      Procore automatically assigns a sequential number to the new PCO. You can change this number if you want. 
    • 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 Prime Contracts tool, click this link to open the contract. 
    • Title
      Enter a title for the PCO in this box. 
    • Prime Contract Change Order
      Select a Prime Contract Change Order (PCCO) from the list to link it to the PCO. 
    • Status
      Select the current state of the PCO. To learn more, see What are the default statuses for change orders in Procore?
    • 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 Default Change Management Configurations.
    • Change Order Request
       Note
      The Change Order Request (COR) setting is only required when the Prime Contracts tool is using the 3-Tier change order configuration setting (see What are the different contract change order tiers?):
      • 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 PCCO 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 Contracts tool. 
    • Accounting Method
      This field inherits the accounting method that was specified in the prime contract. See How do I set the accounting method for a contract?
    • 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 whe the PCO is approved.
    • 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 uses 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.

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 PCO click the Schedule of Values tab
     Notes
  2. Select the correct Cost Code from the drop-down list.
  3. Enter a description for the line item.
  4. 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.
  5. 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.
     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 Contracts tool is active on the project. 
    • When adding line items to the change order's SOV, you must select an associated line item for each new line item. You may designate one (1) associated line item or use the same associated line item for multiple line items.  
  6. Repeat the steps above to add new line items.
  7. Click Save.
     Tip

    If the PCO also affects a purchase order or subcontract, continue as follows:

    To learn how to associate financial markup with line items, see Add Financial Markup to Change Orders.

 

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 .