KIER + Procore: Change Events

***KIER Construction requires all cost changes to be documented within 48 hours***

KIER Construction - Internal Process & SOP - Change Orders

EXAMPLE 1: CREATE A CHANGE EVENT TO ESTABLISH A CHANGE ORDER

A change event can come from many sources and is an event that establishes the change order process. Examples include:

• Accommodating an owner's request.
• Accounting for a design flaw.
• Addressing an unforeseen issue caused by a vague document or specification.

EXAMPLE 2: CREATE A CHANGE EVENT TO DOCUMENT A BACKCHARGE

A change event can also be used to document a project condition that resulted in a backcharge. The intent of a backcharge is to recover the unforeseen expenses incurred when performing corrective actions that a party was contractually obligated to perform. 

To ensure that you have fully documented the conditions that resulted in the backcharge, you can create a change event. Common scenarios for documenting backcharges this way include:

• Repairing something that a subcontractor damaged.
• Cleaning up an area that the subcontractor was obligated to clean. 
• Replacing defective materials provided by the subcontractor. 
• Reinstalling an incorrect installation performed by a subcontractor. 
• Bringing a neglected issue into compliance with safety regulations. 
• Providing unforeseen equipment rental and use costs.

After a change event is created, you can then send a Request for Quote (RFQ) to your subcontractors. Subcontractors can then respond to RFQs (or a general contractor can enter a response to an RFQ on the subcontractor's behalf). Included in the RFQ response is all the required documentation related to the change event's potential cost and schedule impact. After your subcontractor's RFQs responses are reviewed, your project team has the information it needs to proceed with creating a Potential Change Order (PCO).

Create a New Change Event

1. Choose from these options:
   • Open the Project Tools menu and click the Create Circle .
     
     OR
   • Navigate to the project's Change Events tool. Then click the Create button. 
     
2. In the 'New Change Event' page, enter the following:
   • Origin
     Select the Procore tool and item from which your change event originates.  
   • Change Event Number
     Procore automatically assigns new numbers to change events in ascending sequential order.
   • Title
     Enter a descriptive title for the change event. 
   • Status: Select a status for the change event from the drop-down list

• Scope
  Select Out of Scope.
• Expecting Revenue
  Select YES or NO.  If YES,  select one of the options from the Line Item Revenue Source field. If NO, Revenue ROM amounts will be set to zero (0).
• Line Item Revenue Source
  Select one of the options from the list: Match with latest cost, No revenue expected, or Quantity x Unit Cost.
• Type

        Select one of the following  from the drop-down menu: 

• Change Reason

       Select a reason for the change from the drop-down menu:

• Description
  Describe the event that may result in a change in costs. 
• Attachments
  Attach any relevant files. 
• Prime Contract (For Markup Estimates)
  Select the contract containing the markup settings you want to use to calculate the markup on the Rough Order of Magnitude (ROM) values. Procore automatically selects the contract with the lowest number.
  

1. Click Save.
   Procore saves the new change event. 

Add Change Event Line Items

1. Navigate to the project's Change Events tool.
2. Choose from these options:
   • Click the Detail tab. Then find the change event to update and click Edit.
     
     OR
   • Follow the steps in Create Change Events.
3. In the 'Edit Change Event' page, scroll to the 'Line Items' card.
4. Choose from these options:
   • To add one (1) new line item on the change event, click Add Line. 
     OR
   • To add line items in bulk using line items from all of the project's commitments in the 'Approved' status, click Add Lines for All Commitments. 
     OR
   • To import line items from a CSV file, see Import Change Event Line Items from a CSV File.
     
5. Complete the line item data entry as follows:
    
   • Budget Code
     Select a budget code 
   • Description
     Enter a description for the line item. 
   • Vendor
     Select the vendor's company name from the drop-down menu. 
   • Contract
     Select the impacted purchase order or subcontract from the drop-down menu. See Create a Purchase Order or Create a Subcontract.
   • Qty
     Enter a numeric value in this box to indicate the number of units that correspond to the unit of measurement that you specify.
   • UOM
     Select a Unit of Measure (UOM) from the drop-down list. To learn about the default selections in this list, see Which units of measure are included in Procore's master list? and Add a Unit of Measure to the Unit of Measure Master List.
   • Unit Cost
     Enter the monetary cost in this box to indicate the cost per unit of measurement.
   • Cost ROM
     Enter a numeric estimation of the cost's Rough Order of Magnitude (ROM). 
     • If you follow those steps to show the ROM value in the budget, and the change event line item ends up having no cost, you will need to zero out the ROM or close the change event to remove it from the budget
6. Click Update.