Change Management without Change Events
After you build your commitment contracts, you can then create change orders to account for additional costs. While most owners prefer to start out using the 2-tier change order tiers, the choice to configure it to use a 1-tier, 2-tier, or 3-tier setting exists. More change order tiers make for a more complex workflow but provide an increased amount of control.
Funding Tool Enabled
What are the different change order tier settings in Project Financials?
Create a potential change order to outline any potential change in costs that would affect the funding. You can only enter a dollar amount at the potential change order level. When you fill out a schedule of values for a potential change order, you'll have the option to select a budget code. Ideally, it will be a budget code already in the budget, so you can see the budget increase on the Budget tab. See Create a Potential Change Order for a Funding.
After creating a potential change order, you can create a commitment change order that acts as a request for pricing from the contractor who will be responsible for the scope of work outlined in the PCO. You can compare the commitment change order to the corresponding potential change order and view your variance between the two. See Create a Commitment Change Order from a Funding Change Order.
After you've created funding potential change orders, you can roll them into a change order request. 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.
Once you have marked the commitment change orders 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.
Funding Tool Disabled
You can only enter a dollar amount at the potential change order level. When you fill out a schedule of values for a potential change order, you'll have the option to select a cost code.
Change orders with a status set to "Pending" will appear in the "Pending Budget Changes" column on the Budget tool. Approved change orders can be added to owner invoices. Once you have marked the change order as approved, the total dollar amount change will be reflected in the "Approved COs" column on the Budget tool.
After creating a potential change order, you can create a commitment change order that acts as a request for pricing from the contractor who will be responsible for the scope of work 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.
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 CCOs with a status of "Pending" will show up in the "Pending Cost Changes" column on the Budget tool.
For more information about the Change Orders tool, see the Change Orders landing page.