Change Management Tools
Next, start learning about Procore's change management tools. There are two options for setting up these tools: (1) Enable the Change Orders and Change Events tools or, (2) Enable only the Change Orders tool.
Change Orders with Change Events
Change events are created for anything on a project that looks like it may create an additional cost. Creating a change event allows you to prepare for the cost of a change before it becomes an actual cost. After creating a change event, you can then create an RFQ (Request for Quote), which is sent to the appropriate subcontractors for pricing. When RFQs are created and responded to by the assigned subcontractors, change orders can then be created based upon the submitted quote.
Configure Your Change Order Tier Settings. You can choose between a one (1)-, two (2)-, and three (3)-tier change order setting. Each tier adds a layer to your team's overall change management workflow. A lower number of tiers offers the most straightforward workflow. An increased number of tiers provides your team with a more complex workflow, but gives your team more control over changes. The most common settings among Procore users are to use the one (1) or two (2) tier setting. To learn more, see What are the different change order tier settings in Project Financials? Once you've decided, you can Configure the Number of Prime Contract Change Order Tiers and Configure the Number of Commitment Change Order Tiers.
Create Change Events. On a construction project, a change event is any change that affects the original scope of a construction project. There are numerous ways to create change events in Procore. In addition to using the Change Events tool (see Create a Change Event), you can also use any of the options available in the supported Procore tool or using Procore's mobile platform. For details on those options, see Which Procore tools can I use to create a change event?
Create RFQs from Change Events and Review RFQ Responses. If you need to create an RFQ for your subcontractors to submit pricing, see Create RFQs from a Change Event. You can then review your subcontractor's quotes to determine if you want to move ahead with creating a change order. See Review RFQ Responses.
Create Change Orders. You can create two types of changes orders in Procore:
A Commitment Change Order can be created before or after an RFQ response is submitted. See Create a Commitment Change Order from a Change Event.
A Prime Potential Change Order can be created before or after an RFQ response is submitted. See Create a Prime Potential Change Order From a Change Event.
To learn what else you can do with the Change Events tool, see Change Events.
Change Orders without Change Events
If your team decides not to enable the Change Events tool, you can still use the Change Orders tool to account for additional costs. For most Procore customers, this change management workflow starts off by creating a Potential Change Order.
Create a Potential Change Order. Use a potential change order to manage any additional costs affecting the prime contract. When creating a potential change order, you can only enter a dollar amount. Later, when you update the Schedule of Values (SOV) for the potential change order, you'll have the option to select a budget code. Ideally, the potential change order will affect a budget code already on the project's budget. This allows you to see the budget increase in the project's Budget tool. See Create a Potential Change Order for a Prime Contract.
Create a Commitment Change Order. After the potential change order is created, you move on to create a commitment change order. The commitment change order acts as a request for pricing from the subcontractor who will be responsible for completing the scope of work that you outlined in the potential change order. You can compare the commitment change order to the corresponding potential change order and view your variance between the two. To learn more, see Create a Commitment Change Order from a Prime Contract Change Order.
Create a Change Order Request. After you've created potential change orders, you can package one or multiple potential change orders into change order requests. Change order requests are typically the documents that are submitted for approval, and can be used for submitting either individual potential change orders, or for grouping potential change orders in order to streamline the review and approval process. See Create a Change Order Request (COR).
Create a Prime Contract Change Order. Next, you can begin creating change orders. Note that when you set a change order's status set to Pending, it appears in the 'Pending Budget Changes' column of the Budget tool. After the prime contract change order is set to Approved, the total dollar amount change is reflected in the 'Approved COs' column of the Budget tool. Approved change orders can be added to owner invoices. For details, see Create a Prime Contract Change Order.
Create a Commitment Change Order. A commitment change order outlines variations in costs that affect the contract between the general contracting company and a vendor or subcontractor. Once you have marked the commitment change order as approved, the dollar change will be reflected in the "Committed Costs" column on the Budget tool. Commitments and potential commitment change orders with a status of "Pending" will show up in the "Pending Cost Changes" column on the Budget tool. See Create a Commitment Change Order.
To learn what else you can do with the Change Orders tool, see Change Orders