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Create a Prime PCO from a Change Event

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Objective

To create a prime potential change order from a change event.

Background

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 PCCO from the Prime Contract tool. For details about the tiers, see What are the different change order tiers? Note: Procore recommends that you create a PCO only for change event items that are Out of Scope and must be submitted to the client/owner for approval.

When you create a PCO, 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?.

Things to Consider

  • Required User Permissions:
    • 'Standard' level permissions or higher on the project's Change Events tool.
    • AND
      'Standard' level permissions on the project's Prime Contract tool and the 'Allow Standard Level Users to Create PCOs' configuration setting must be enabled on the Prime Contract tool. See Configure Settings: Prime Contract.
  • Additional Information:
    • Depending on your project's change order configuration, PCOs can also be transitioned into one of the following items:

Prerequisites

Steps

  1. Navigate to the project's Change Events tool.
  2. Select one or more change event line items to include in the new Prime PCO.
    Note: You can select line items across multiple change events.
  3. Open the Bulk Actions menu and select Create a Prime PCO.
    Note: The Schedule of Values (SOV) is created from the change event line items.
    create-prime-pco.png
  4. Complete the following data entry:
    • #. Procore automatically assigns the change order a number. By default, numbers are automatically assigned in sequential order. 
      Notes:
      • If you want to enter a number manually, you may type over the number displayed here.
      • If you enter a number manually, the system will automatically assign a number in sequential order to any subsequent Prime PCOs. 
    • Revision. If this is a revision, you can enter the number of revisions.
    • Title. This field is automatically filled with the name of the correlated change event, but you have the ability to adjust to your liking.
    • Status. The default status is set to 'Pending - In Review.' You can also select from one of the below statuses:
      • Approved. The PCO is approved. Costs are reflected as 'Approved COs' in the budget.
      • Draft. The PCO needs modification before it can be submitted for review. Costs are not reflected in the budget.
      • Pending - In Review. The PCO is currently being reviewed. Costs are reflected  'Pending Changes' in the budget.
      • Pending - Not Pricing. The PCO is pending and is not actively being priced. Costs are reflected  'Pending Changes' in the budget.
      • Pending - Not Proceeding. The PCO  is pending and the work is not currently taking place. Costs are reflected  'Pending Changes' in the budget.
      • Pending - Pricing. The PCO is pending and currently out for pricing. Costs are reflected  'Pending Changes' in the budget.
      • Pending - Proceeding. The PCO is still pending and the work is being completed. Costs are reflected  'Pending Changes' in the budget.
      • Pending - Revised. The PCO has been modified since its initial submission. Costs are reflected  'Pending Changes' in the budget.
      • Rejected. The PCO has been rejected. Costs are NOT reflected in the budget.
      • No Charge. The PCO has no resulting charge.
    • Prime Contract Change Order
      • None. A potential change order can be linked at a later time.
      • Add to Existing. Link the potential change order to an existing prime contract change order.
      • Create New. Create a new prime contract change order.
    • Change Reason. The change reason field will populate with the change reason you selected in the change event; however, you can edit as necessary.  Select the reason for the potential change order. Selections include Client Request, Design Development, Allowance, Existing Condition, Backcharge, or any options customized by your company's Procore Administrator.
    • Private. Place a mark in this checkbox if you want the potential change order to be visible only to users with 'Admin' permissions on the Prime Contract tool. 
    • Accounting Method. This field inherits the accounting method that was specified in the Prime Contract. (e.g Amount Based)
    • Description. Enter in a more detailed description of the change order.
    • Request Received From. Select the name of the user from whom you received a request to create the change order. 
    • Location. Use the location drop-down menu to select a location the [item] impacts. Either select from the predefined locations or add a new multi-tiered location. For instructions, see How do I add a multi-tiered location to an item? This location may be as general as the site location at the first tier or as specific as where on the site the contractor will be working at the second tier.
    • Schedule Impact. If known, provide an estimate of the number of additional days that would potentially be added to the current project schedule if the Prime PCO  were approved.
    • Field Change. Place a mark in this checkbox if the change order is a field change.
    • Reference. Reference any other tools, materials, drawings or documents that are related to the potential change order.
    • Paid in Full. Check this box to indicate you have received payment for this change. 
    • Attachments. Attach any relevant documentation. Note: If there is an associated Request for Quote (RFQ) and the reviewer has attached any documentation to their RFQ response, the Change Events tool can be configured to add those attachments to new change orders. 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 Contract tool is enabled on the project. 
    • When adding line items to the change order's Schedule of Values (SOV), you must select an Associated Line Item for each new line item. You may designate one associated line item or use the same associated line item for multiple line items.  

 

If you would like to learn more about Procore’s change events management software and how it can help your business, please visit our construction change order product page here.