Subcontract Change Order (SCO) Overview

The purpose of a Subcontract Change Order (SCO) is to modify the original Subcontract due to a changed condition and work scope. Changes can be initiated by the Prime Contracting firm (i.e. GC) or Subcontractor and can affect the Subcontract amount and time.

Typically, the SCO is formally approved and executed by the Prime Contracting firm after a Change Proposal Request (CPR) and/or Change Order (CO) process has been completed. Wizards are available to automatically create one or more SCOs from CPRs. However, SCOs can also be created manually.

SCO Budget Impact By Contract Type

Yes indicates that the SCO will add/deduct from the Original Budgets setup in the Subcontract.

Important Things To Know

• When SCOs are created or modified, Corecon will check if the vendor's profile contains any expired insurance records and will then provide a warning message shown in red.
• Order #: The Order # field is an integer and determines previous SCO amounts. When printing the SCO report for the contractor's review and signature, the previous SCO amount is equal to all SCOs that are marked Approved with a Signed Date and have an Order # less than the current SCO value.
• Status Options: SCO Status Options occur in the following sequence: (1) Draft (2) Pending Submission (3) Pending (4) Not Approved (5) Approved
• Emailing: An SCO can be emailed by clicking the Detail Report option at the top and choosing 'Email Doc' or 'Email PDF' option in the popup form. The SCO will then be an attachment in the email which can be printed by the recipient (eg. sub) and later returned signed.
• Editing SCOs: To prevent SCOs from being modified if Sub Invoices exist, please see Settings | Features Settings | Procurement | "Do not allow Subcontracts or SCOs to be modified after Sub Invoices have been created."
• Subcontract Budget Impact: SCOs must be marked Approved with a Status Date for it to affect the original budgets.
• Budget Tracking: The job cost dashboards in Project Analytics only reflect SCOs that have been marked Approved with a Status Date. SCOs will appear under the Committed Cost section.
• Invoicing SCOs: In order for the Subcontract Invoice to include SCOs, the Subcontract Type must be Fixed Lump Sum and the SCO must be marked Approved with a Status Date less than or equal to the Subcontract Invoice's Issue Date.

Steps To Complete Before Entering SCOs

1. Review Initiated By Options in Settings | Feature Settings | Procurement.
2. Make sure the Prime Contract and Subcontract that will be referenced on the SCO are Approved and have a Status Dates.
3. Referencing a Job Cost Code is required when entering SCO Proposed Items.
4. Optional: Tax Codes can be referenced on PO Items.

SCO Add Options

• Adding an SCO Manually
• Add From WO
• Add From CPR
• Add From CO
• Entering Negative Amounts On Line Items (aka Credits)

SCO Edit Options

Important Things to Know About Editing SCOs:

• If SCO has been imported into a Subcontractor Invoice and the SCO is marked approved, then Status and Status Date cannot be changed.
• If a Subcontractor Invoice exists and "Settings | Feature Settings | Procurement | Do not allow Subcontracts or SCOs to be modified after Sub Invoices have been created" is checked, then SCO items cannot be added or modified even if they haven't been invoiced yet. Invoiced SCO Items can not be modified regardless of this setting.
• If a Workflow Rule applies to the SCO and the Rule has been initiated or approved already then nothing can be modified unless the Rule is abandoned.

Edit Options:

• Edit SCO "Header" Information
• Add, Edit, or Import SCO Line Items
• Edit SCO Tax Total
• Locking or Unlocking SCOs

See Also

• Tax Code Reference Logic On PO, Bill, Subcontract, and SCO Items
• Printing or Emailing an SCO