Create Proposed Change Orders/Change Directives

In this article, you will learn how to create Proposed Change Orders and Change Directives. It is worth noting that the same processes apply to both forms.

Change Order vs Change Directive

• Change Order: A formal, mutually agreed-upon amendment to the original contract. It details changes in the scope of work, price adjustments, and potential timeline impacts. Both the owner and contractor sign off, indicating agreement on all terms most importantly the costs.
• Change Directives: An instruction from the owner requiring the contractor to perform work outside the original scope, even if the cost and time implications haven't been fully agreed upon. It's often used when changes need to be implemented urgently, but negotiations are still ongoing.

Impact on Progress Draws (Payments to Contractor)

• Change Order: Once approved, work completed under a change order is generally eligible to be included in the contractor's progress draw, in line with the adjusted contract terms. Approved Change Orders will automatically appear on the Certificate for Payment.
• Change Directive: The treatment of work completed under a change directive can be more complex. While some contracts allow for partial payment pending final agreement, others might restrict payment until the change order is fully executed. this can create financial strain for contractors, particularly on large or complex projects. Approved Change Directives will automatically appear on the Certificate for Payment and will allow for partial payments as the work is completed.

1. Go to the Project where you would like to create the Proposed Change Order form.

   

2. Click the Project Forms tab. This will open the CHANGE ORDERS tab by default. When accessing the CHANGE ORDERS tab, the Proposed Changes page is active.

   

3. Click the New PCO/CO Form button.

   

4. You will be directed to the Proposed Change Order - <No.> page.
5. In the Form Type section, select the type of change order by clicking the appropriate radio button:

   

   1. Proposed Change Order
   2. Change Directive
6. In the Title section, specify the following information:

   

   

7. In the Description section, enter the request description. You can use the Toolbar to format the PCO/CO description.

   

8. In the Requested By section, specify the following details:

   

   

9. In the Attachments section, Drag and Drop the files you want to attach or use the Browse link to search and upload the file manually.
   1. Note: File size must be less than 50 MB and avoid using special characters in file names.
10. In the Terms & Conditions sections, enter the following terms and conditions in the appropriate text boxes:

    

    1. Proposed Change Order
    2. Change Oder
       1. Note: you can use the Toolbar to format the terms and conditions.
11. After specifying the PCO/CD request details, click the Save button to create the request.