Change Events: Track Potential Revenue Throughout the Change Management Process

Revenue ROM on Change Event Line Items

Revenue ROM is a new field on line items that can be edited independently from Cost ROM or set to stay in sync with the latest cost information. By default, Revenue ROM will be set based on the scope of the change event. Lines on change events with a scope setting of “out of scope” will have Revenue ROM that follows the latest cost, whereas lines on change events with a scope set to “In Scope” or “TBD” will have Revenue ROM set to $0.

In this Out-of-Scope change, the Revenue ROM for each line is set to automatically use the latest information from the cost side, as indicated by the .

Financial Markup Estimates

In order to show the entire potential impact of a change event before a PCO is created, estimated markup is calculated and displayed using the Revenue ROM values.

Revenue ROM for markup lines is displayed here based on the financial markup settings from the change event’s designated prime contract.

Choose a Prime Contract to Estimate Financial Markup

In each change event, you can choose which prime contract’s financial markup should be used to estimate markup for this change event’s Revenue ROM values. Setting this to “None” will remove markup estimates. This will default to your first prime contract (sorted by number then title) for new change events. This can also be set for all existing change events at once. See Adding Markup Lines with Revenue ROM to Change Events.

Edit Revenue ROM Values

Revenue ROM values can be edited by clicking into the cell. Choosing the “Automatically use Latest Cost” option will keep the Revenue ROM in perfect sync with the Latest Cost, which is the most firm cost (ROM, reviewed RFQ, Commitment/CCO, or Non-Commitment) for that line. Alternatively, you can set the Revenue ROM to “No revenue expected” or any other value.

This Cast-In-Place Concrete line item is set to automatically use latest cost, as this is an “out of scope” change for which a future prime contract change order is expected to cover the entire cost.

Default Revenue ROM Values

Revenue ROM for lines on change events that are set to “Out of Scope” will default to “Automatically use Latest Cost”. Lines on “In Scope” / “TBD” change events will default to “No revenue expected.” ($0.00). When the scope of a Change Event is changed, you can optionally update the Revenue ROM values to match.

Revenue ROM on the Budget

Revenue ROM is available as a source column on budget views. The column can be configured to include base cost, markup, or the sum of the two. If desired, filtering options make it possible to hide the Revenue ROM once a Prime CO is available. See Add Change Event Columns to a Budget View.

Latest Price, Latest Cost, and Over / Under

These additional columns show the most firm revenue (“Latest Price”), most firm cost (“Latest Cost”), and the variance between these two (“Over/Under”) for each line.

Note that the totals for these columns reflect the most current price and cost for an entire change event, even if individual line items are in different stages of pricing.