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

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?.

• 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.

• 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?

• 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.

• The project's client contract must be in the 'Approved' status.

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

      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

      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

   • Revision

   • Contract Company - Change Order

   • Contract - Change Order

   • Title

   • Status

   • Client Contract Change Order - Change Order

   • Change Reason - New Potential Change Order from a Change Event

   • Private

   • Description

   • Executed

   • Signed Change Order Received Date - Change Order

   • Request Received From - Change Order

   • Location

   • Schedule Impact

   • Field Change - Change Order

   • Reference - Change Order

   • Paid in Full - Change Order

   • Attachments

      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.