About Budget Changes on Owner Progress Claims
Table of Contents
Overview
When managing a head contract on a Procore project, Head Contract Variations (HCVs) are typically used to adjust the scope of work, manage changes in costs and for other modifications to the contract conditions. However, not all financial adjustments require the use of a HCV.
On many prominent contract types, most notably Guaranteed Maximum Price (GMP) contracts, a Head Contractor often controls the project's contingency or allowance funds and only needs to inform the project's Owner as to how those funds are used. For this scenario, the use of those funds can be reflected on an owner progress claim using the features for 'Budget Changes on Head Contract Progress Claim.'
These features let the user select which budget changes to add to the most recent owner progress claim on a head contract. The progress claim is updated to group budget change line items, so users can quickly find and update the lines with billable amounts.
Budget Changes - Owner Invoicing Demo
Prerequisites
- An administrator must enable the Invoicing tool. See Add and Remove Project Tools.
- The user must be viewing the modernised owner progress claim experience. See Project Financials: Modernised Owner Progress Claim Experience.
- A user must create a head contract. See Create Head Contracts.
- A user must create an owner progress claim for the head contract. See Create Head Contract Progress Claim.
Limitations
Please be aware of the following limitations:
- Approved budget changes can only be added to the most recent owner progress claim on a head contract.
Details
Key features include the ability to:
- Configure ‘Budget Changes’ settings in the 'Budget Settings' page of the project's Budget tool
- Add a new 'Budget Changes Value' column and 'Budget Changes' group on the owner progress claim Schedule of Values
- Create a new budget change and select the head contract so it can be added to the owner progress claim once the change is approved
- Respond to the notification banner on the most recent owner progress claim's Schedule of Values by clicking Review & Add
- Review the approved changes and select the changes to add to the most recent owner progress claim
- View and edit the added changes on the most recent owner progress claim
Configure the 'Budget Changes' settings in the 'Budget Settings' page of the project's Budget tool
To add approved budget changes to the most recent owner progress claim, an administrator must configure the 'Budget Changes' settings in the 'Budget Settings' page of the Project level Budget tool. See Configure Settings: Budget:
- Allow Budget Changes to be Billed on Head Contract Progress Claim. Adds the 'Budget Changes Value' column to the schedule of values on head contract progress claim, adds the 'Add to Owner Progress Claim' check box and 'Head Contract' drop-down list to the 'Add Budget Changes' window and enables the budget changes notification banner to appear at the top of the most recent owner progress claim's Schedule of Values' after a change is approved. See Approve Budget Changes.
Note
Once approved, only Net Zero Budget Changes are eligible for adding to owner progress claims.
Example
Below are the new 'Budget Change' configuration options in the 'Budget Settings' page of the Budget tool.
Add a new 'Budget Changes Value' column and 'Budget Changes' group on the owner progress claim Schedule of Values
After an administrator configures the 'Budget Changes' settings, the 'Budget Change Value' column appears in the project's head contract progress claim when you expand the 'Value' column group. This column can be turned ON/OFF in the 'Configure Columns' area under 'Value' on the Table Settings panel of a progress claim's Schedule of Values. By default, the column is turned ON, but the 'Value' column is collapsed. To see it, expand the 'Value' column. A 'Budget Changes' group is also available in the Select Groups to Display drop-down list.
Example
Below is an example of the 'Budget Changes Value' column and 'Budget Changes' group on an owner progress claim.
Create a new budget change and select the head contract so it can be added to the owner progress claim once the change is approved
After an administrator configures the 'Budget Changes' settings, a new 'Add to Owner Progress Claim' check box and 'Head Contract' drop-down list on the 'General Information' card in the Create New Budget Change form. Marking the 'Add to Owner Progress Claim' check box lets Procore know to add the budget change to an owner progress claim after approval. Users must also select a head contract so Procore can display the notification banner to alert users to review and add the approved changes to an owner progress claim.
Example
Below is the 'Create New Budget Change' page in the project's Budget tool, with the 'Add to Owner Progress Claim' check box and 'Head Contract' drop-down list.
Respond to the notification banner on the most recent owner progress claim's Schedule of Values by clicking Review & Add
When a user edits the most recent owner progress claim for a head contract, a notification banner appears at the top of the Schedule of Values on the head contract's head contract progress claim when newly approved budget changes are available to add to an existing owner progress claim. Users can only click the Review & Add button on the most recent progress claim. For all older progress claims, the notification banner appears to alert the user of newly approved changes, but the Review & Add button is disabled by default. You can only review & add changes on the most recent progress claim.
Example
Below is an example of the notification banner and the Review & Add button that displays on the selected head contract's owner progress claims. The Review & Add button is only active on the most recent progress claim.
Below is an example of the Review & Add button when its disabled. Hover your mouse cursor over the button to see a tooltip.
Review the approved changes and select the changes to add to the most recent owner progress claim
After clicking the Review & Add button on the most recent progress claim, the 'Review & Add Approved Changes' window appears. Users can mark the checkboxes that correspond to the budget change to add. If there are multiple budget changes or variations, all approved changes are listed. After selecting the changes to add, click Add. A green banner appears to confirm the addition(s).
Note
If you create a new owner progress claim after approving budget changes, all approved changes are automatically reflected on the progress claim. You only need to add approved changes to the most recent, existing owner progress claim.Example
Below is the 'Review & Add Approved Changes' window. It lists all newly approved budget changes and variations. You can use the owner progress claim's bulk billing features when editing the most recent owner progress claim.
View and edit the added changes on the most recent owner progress claim
Once you've added the budget change(s), they appear in the 'Budget Changes' group in the Schedule of Values. Users can bill against the budget codes that were adjusted by the budget change by editing the line item directly or using the bulk billing features. To learn more, see Edit Head Contract Progress Claim.
Example
Below is an example of a budget change after it's been added to an owner progress claim's Schedule of Values.
View a tooltip for details about the 'Scheduled Value' calculation for the owner progress claim's Schedule of Values
After an administrator configures the 'Budget Changes' settings, hover your mouse cursor over the information icon on the 'Scheduled Value' column on the progress claim's Schedule of Values. A tooltip that explains how the 'Scheduled Value' calculation is updated when your team is adding budget changes to head contract progress claim.
Example
Below is an example of the 'Scheduled Value' tooltip on the Schedule of Values of an owner progress claim.
Common Questions
Do we have to opt-in to the modernised owner progress claim experience?
Yes. To add approved budget changes to an owner progress claim, users must opt-in to the modernised owner progress claim experience. The ability to add approved changes to owner progress claims is only compatible with the modernised experience. If you opt-out of the modernised experience, you will not be able to add budget changes to owner progress claims. In addition, the budget change columns are not available with the legacy experience.
To learn more about the modernised experience, see Project Financials: Modernised Owner Progress Claim Experience.
More
To learn more about adding budget changes to owner progress claims, see the links below:
- Updated Owner Progress Claim APIs will be available on developers.procore.com.
- Budget change data is available in Owner Progress Claim and Owner Progress Claim Line Item reports. To learn how to create reports, see Project Reports.
- You can use the group row billing features on Budget Changes with Head Contract Progress Claim. See About Group Row Billing on Head Contract Progress Claim.