Change Orders

In most construction projects, unforeseen events may require changes to the budget. When these changes occur, navigate to the Change Order tab in Cost Management. Work with cost items to create change orders.

Select a card to see the ways that you can work with the Change Order tab:

To effectively work with change orders:

• Add nonmembers so that you can collaborate with suppliers and owners that don't need access to the rest of the project.
• Assign collaborative permission to the change order that they need to work with. To learn more, see the Cost Management Permissions article.

Change Order Workflow

Get familiar with the basic change order workflow, which is a part of the financial Cost Management workflow:

PCO (Potential Change Order) is a starting point of the change order workflow. However, you can also create change orders from a cost item.

The different change order types are related in that:

• One or more PCOs can form a COR.
• One or more CORs can form an OCO.
• One or more SCOs can be generated from a single OCO.

As a result, within Cost Management:

• A PCO can be used to generate CORs, OCOs, or SCOs.
• A COR can be used to generate OCOs or SCOs.
• An OCO can be used to generate one or more SCOs.

Change Order Tables and Columns

The values populate and move across the columns in the change order tabs. Click the icon to see all available columns.

Here is a handful of helpful examples:

• Approved: This column shows the approved amount. For cost changes, it populates the amount from the Approved column. See the Change Order Statuses article to learn more.
• Committed: The Committed column shows the amount agreed to be paid for the relevant supplier scope change. It also means that PCO turns into an SCO. Or when an RFQ is accepted.
• Estimated: This one shows the estimated amount. For cost changes, it populates the Reserves column in the overview.
• Proposed: This column shows the proposed amount. It also means that an RFQ has been generated and set as proposed in the Change Order tables. For cost changes, it populates the Proposed column in the overview.
• Submitted: This one shows the submitted amount. For cost changes, it populates the Submitted column in the overview. It also means that a PCO has been turned into a COR. When a COR is marked as Accepted, it populates the submitted amount in the Approved column. If you are not using the COR process the Approved means that a PCO has been converted to an OCO.

The change order tables provide detailed information on cost items, including the associated change order number. By clicking each number, you will be redirected to the specific tab where the corresponding change order is located. A flyout panel will open to provide further details.

Foreign Supplier Change Order Management

Once the foreign currency is set up, change orders can be entered and managed in the currency of the foreign supplier as the project progresses. The system will automatically recognize the currency set for a supplier within their contract. When a potential change order (PCO) arises, you or the supplier (with the appropriate permission level) can generate a PCO.

Link a cost item with a contract awarded in foreign currency to:

• Create change orders in the same currency as the contract
• View change order in a base currency based on defined exchange rates

The Estimated, Submitted, and Approved values will always be entered in base currency. Yet, you’ll see changes in the Proposed and Committed values. The base currency will be displayed with the icon next to it. Hover over it to see or edit the exchange rate:

You can also manage this information within the Cost Item’s flyout panel. First, select the item to open the flyout panel, then scroll to the Cost Summary section. Then, select the Proposed or Committed columns. Toggle between the two currencies and edit the exchange rate whenever needed.

You can copy values from the Estimated, Submitted, and Approved columns. Those values will be converted from the base to the foreign currency.

More Resources

Check out our video course to learn more about managing change orders in Cost Management.