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What are the different contract change order tiers?

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Answer

When configuring the number of prime contract change order (PCCO) tiers for the Prime Contract tool or the number of Commitment Change Order (CCO) tiers from the Commitments tool, you can choose between a 1-tier, 2-tier-, or 3-tier configuration. The change order configuration settings must always be set up after you enable the Prime Contract or Commitments tool.

 Important
You cannot change these settings after you begin creating change orders that affect the commitments and prime contracts on your project.

To learn how change order tiers can be configured in these contract tools:

Prime Contract Change Order Tiers

The Prime Contract tool can be set up to manage your project's change orders using a 1-tier, 2-tier-, or 3-tier configuration. See Configure the Number of Prime Contract Change Order Tiers. The following workflow diagram describes how your users will manage change orders, depending upon the configuration setting you choose for the Prime Contract tool.

  • 1-Tier (One-tier, a.k.a. 'single-tier'). This setting limits your users to creating a prime contract change order (PCCO) when there is a change to the original scope of work on your project's Prime Contract. These PCCOs can then be sent to the appropriate person (a.k.a., the owner or prime contractor) for approval.
  • 2-Tier (Two-tier). This is the default configuration setting for the Prime Contract tool. With this configuration, your users first create Potential Change Orders (PCOs). The change orders can then be grouped into a prime contract change order (PCCO) which can then be sent to the appropriate person (e.g., the owner, the main contractor, the prime contractor, etc.) for final approval.
    Note: If your company or project's billing process does NOT require you to group all of the approved change orders for the month into a single, combined change order for final signature, the two-tier configuration is the recommended setting for the Prime Contract tool. 
  • 3-Tier (Three-tier). With this configuration, your users create Potential Change Orders (PCOs). These PCOs can then be added individually or grouped into a change order request (COR). Next, the CORs can be submitted for approval. Upon approval, you can then group these CORs into a single prime contract change order (PCCO) .  

Commitment Change Order Tiers

The Commitments tool can be set up to manage your project's change orders using a 1-tier, 2-tier-, or 3-tier configuration. See Configure the Number of Commitment Change Order Tiers. The following workflow diagram describes how your users will manage change orders, depending upon the configuration setting you choose for the Commitments tool.

  • 1-Tier (One-tier, a.k.a., 'single-tiered'). Single tier change orders consist solely of a Commitment Change Order which can be sent for approval.
  • 2-Tier (Two-tiered). Two tier change orders begin with a Commitment Potential Change Order (CPCO). Commitment Potential Change Orders are then rolled up and grouped into a Commitment change order (CCO) which can be sent for approval. In a typical General Contractor scenario where the commitments are subcontractors, this is the recommended setup as it will allow you to include multiple, discrete changes into a single CCO.
  • 3-Tier (Three-tiered). Three tier change orders begin with the creation of a Commitment Potential Change Order. Individual or grouped CPCOs are then bundled into change order requests (CORs). Change order requests are then grouped into Commitment Change Orders (CCOs) which can then be sent for approval. The CCO is the document that will actually increment the contract price and allow a change order to be included in a billing.

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