Prime Contract Change Order (CO)
A Change Order (CO) occurs when there is a change to the original Prime Contract's scope of work. Changes can be initiated by the owner, architect, regulatory agency, or even your own firm such as in the case of adverse field conditions. COs can be documented regardless of contract type: Fixed Lump Sum, Cost Plus, or Unit Price. When marked Approved with an Signed Date, the CO will affect budgets for any type of contract (see details below).
Breakdown of CO Budgets
Important: Revised Budgets shown on reports and project analytics are only affected when COs are marked Approved with a Status Date.
Budget Types | ||||
Contract Type | Revenue or Contract Amt. | M/L/E/S/O Cost | Lbr. Hours | Eqp. Hours |
Fixed Lump Sum | Yes | Yes | Yes | Yes |
Cost Plus with GMP | Yes | Yes | Yes | Yes |
Cost Plus without GMP | Yes | Yes | Yes | |
Unit Price | Yes | Yes | Yes | Yes |
Yes indicates that the CO will add/deduct from the Original Budgets setup in the Prime Contract.
Important Things To Know
- Order #: The Order # field is an integer and determines previous CO amounts. When printing the CO report for the Customer's review and signature, the previous CO amount is equal to all COs that are marked Approved with a Status Date and have an Order # less than the current CO value.
- CO Status: Status options occur in the following sequence: (1) Draft | (2) Pending Submission | (3) Pending | (4) Not Approved or Approved.
- Approval Process: After the CO has been reviewed by the Customer, be sure to update the CO Status and Status Date fields.
- Invoicing COs: In order for the Prime Contract Invoice to include COs, the following criteria must be met.
- Prime Contract Type must be Fixed Lump Sum or Unit Price.
- CO must be marked Approved with a Status Date.
- CO Status Date must be less than or equal to the Prime Contract Invoice's Issue Date.
- Budget Tracking: Financial Dashboards in Project Analytics only reflect COs that have been marked Approved with a Status Date.
- Emailing: A CO can be emailed by clicking the Details Report option at the top and choosing 'Email Doc' or 'Email PDF' option in the popup form. The CO will then be an attachment in the email which can be printed by the recipient (eg. customer) and later returned signed.
Business Processes for Client Change Management
Click here for more details.Steps To Complete Before Entering COs
- Review Initiated By Options in Settings | Feature Settings | Contract Admin.
- Ensure the Owner/Customer that will be reviewing the CO is listed in the Project Directory.
- Prime Contract has been created and is marked Approved with an Status Date.
- Job Cost Codes must be established since this is a required reference on the CO's Proposed Items.
- Optional: Tax Codes can be referenced on CO's Proposed Items.
- Adding CPR or CO Markups
CO Add Options
Within Corecon, COs can be created manually or using a two-step process generated from an Estimate, Change Proposal Request (CPR) or Work Order (WO). Below are links to these options.
- Adding a CO Manually
- Estimate to CPR/CO Wizard
- Allowance Package to CO Wizard
- CPR to CO Wizard
- WO To CPR/CO Wizard
- Entering Negative Amounts On Line Items (aka Credits)
CO Edit Options
Important Things to Know About Editing COs:
- If a Prime Contract Invoice exists and Settings | Feature Settings | Contract Admin | 'Do not allow Prime Contracts or Change Orders to be modified after Prime Invoices have been created' is checked, then CO items cannot be added or modified even if they haven't been invoiced yet. Invoiced CO Items can not be modified regardless of this setting.
- If a Workflow Rule applies to the CO and the Rule has been initiated or approved already then nothing can be modified unless the Rule is abandoned.
Edit Functions:
- Edit CO "Header" Information
- Add, Edit, or Import CO Proposed Items
- Edit CO Tax Total
- Edit CO Labor and Equipment Hour Budget Revisions
- Lock or Unlock COs
See Also
- Printing or Emailing a CO
- Tax Code Reference Logic On Prime Contract, CPR, and CO Items
- Special Instructions for Unit Price Contract COs
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