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Create a Change Event with Revenue ROM

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Objective

To create a change event for a project that is using Revenue ROM. 

Background

To prepare for the cost of a change, before it becomes an actual cost, you can create a change event. 

For example, if a project manager is anticipating the need to change the paint colours of a project, they can start preparing for that cost by creating a change event, which describes the estimated financial cost of the change as well as which cost codes will be affected. After creating a change event, they can then create an RFQ (Request for Quote), which is sent to the appropriate subcontractors for pricing. When RFQs are created and responded to by the assigned subcontractors, variations can then be created based upon the submitted quote.

Things to Consider

  • Required User Permissions:
    • 'Standard' level permissions or higher on the project's Change Events tool.
  • Supported Platforms:
    • Procore for Web
    • Procore for Android
    • Procore for iOS

  • Alternate ways to create change events:

Prerequisites

Steps

Create a Change Event with Revenue ROM

  1. Navigate to the project's Change Events tool.
  2. Click + Create.
  3. Under General Information, enter the following:
    • Origin. Select the observation or RFI that resulted in this change event. 
    • Change Event #. The system assigns change event numbers in sequential order. If you want to customise the numbering scheme, you can update it to an alphanumeric number (for example, A200 or CE1000) and the system will automatically use that scheme and assign subsequent numbers in sequential order. 
    • Title. Enter a descriptive title for the change event.
    • Status. Select a status for the change event from the drop-down list. To learn about Procore's default statuses, see What are the default statuses for change events in Procore?. Your Procore Administrator can also customise the options in this list. See Customise Change Event Statuses. 
    • Scope. Select one of the available scope options from the list: In Scope, Out of Scope, or TBD. 
       Important
      It is important to understand the effects of the 'Scope' setting when a change event is using the Revenue ROM feature, see What are the default scope options for change events in Procore?
    • Update Revenue ROMs. This field appears next to the Scope field if you make a change in the Scope field. Mark this tickbox if you want the revenue ROM of all line items to be updated according to the new scope that you selected. This change will happen when you click the Save button on this change event.
      When changing the scope to In-Scope or TBD, the revenue ROM for all line items will be set to $0. When changing the scope to Out of Scope, the revenue ROM for all line items will be set to automatically use the Latest Cost.
    • Type. Select TBD, Allowance, Contingency, Client Change, or Transfer to indicate the type of cost you are preparing for.  To learn how to configure change types,  see Set the Default Change Management Configurations.
    • Change Reason. Select a reason for the change from the drop-down list. To learn how to configure change reasons,  see Set the Default Change Management Configurations.
    • Description. Describe the event that may result in a change in costs. 
    • Attachments. Attach any relevant files. 
    • Head Contract (For Markup Estimates). Select a head contract to indicate which head contract’s markup settings should be used to calculate the markup on revenue ROMs. This field will default to the lowest-numbered head contract.
    • Optional: Click +Add Lines for All Commitments to add line items for each scope of work across all purchase orders and subcontractors. This action will NOT create line items for purchase orders or subcontracts in the Terminated or Void status. 
  4. Click Create. 
     Notes
    • If you are using a budget code that does NOT have a corresponding line item on your project's budget, a pop-up message appears so you can confirm that you want to add a partial budget line item to the budget. 
    • Click OK to add the partial budget line item. 
    • The line item will be added to your budget and a question mark (?) appears on the line item. For details, see Add a Partial Budget Line Item.
  5. To edit the Revenue ROM amount when viewing or editing a change event or from the 'Detail' tab of the project's Change Events tool, you can edit the 'Revenue ROM' value inline a desired:
    • Automatically Use Latest Cost
      When you select this option, the amount in the 'Revenue ROM' column matches the amount in the 'Latest Cost' column. 
      • Latest Cost is the existing column in the Change Event Cost section, which auto-updates to the right-most value between Cost ROM, RFQ, Commitment or Non-Commitment. Markup that is set up as part of the Head Contract will calculate this amount.
    • No Revenue Expected
      When you select this option, the amount in the 'Revenue ROM' column is set to $0. Use this option for In Scope Change Events when the change events will NOT result in a Head Contract Variation (HCV). 
    • Manual Entry
      When you select this option, enter any amount in the 'Revenue ROM' column. Any financial markup set on the head contract will automatically calculate this amount for you. 
  6. Click Create.
     Notes
    • Depending on the 'Scope' setting applied to the change event, the ROM amount entered may dictate the 'Revenue ROM' amount.
    • You can also manually update the 'Revenue ROM' amount.
    • You can add the 'Revenue ROM' to a budget view in the project's Budget tool, follow the steps in Add Change Event Columns to Budget View (Including Revenue ROM).

Add Line Items to a Change Event

 Tip
Did you know a user with 'Admin' settings on the Change Events tool can turn the Change Events tool's 'Column Display' settings ON and OFF? For best results, your project's column display settings should be determined at the beginning of a project. To learn more, see How do the Change Events tool's column display settings work?
  1. Navigate to the project's Change Events tool.
  2. Choose from these options:
    • Click the Detail tab. Then find the change event to update and click Edit.
      edit-change-event.png
      OR
    • Follow the steps in Create a Change Event.
  3. Choose from these options:
    • To add a new line item, click Add Line. 
      OR
    • To add line items in bulk using line items from all of the project's commitments in the 'Approved' status, click Add Lines for All Commitments. 
  4. Complete the line item data entry as follows:
    create-budget-code.png  
     Tip

    You can group change event line items while editing a change event by clicking Add Group at the top of the line item adder. You can group line items by the following:

    Sub Job  Cost Type Cost Code
    • Cost Code Tier 1
    • Cost Code Tier 2
    • Cost Code Tier 3
    • Cost Code Tier 4
    • Cost Code Tier 5
    • Budget Code
      Select a budget code from the list or click Create Budget Code to create a new one. See What is a budget code in Procore's WBS? 
    • Description
      Enter a description for the line item. 
    • Vendor
      Select the vendor's company name from the drop-down menu. See Add a Company to the Project Directory.
    • Contract
      Select the impacted purchase order or subcontract from the drop-down menu. See Create a Commitment.
    • Qty
      Enter a numeric value in this box to indicate the number of units that correspond to the unit of measurement that you specify.
    • UOM
      Select a Unit of Measure (UOM) from the drop-down list. To learn about the default selections in this list, see Which units of measure are included in Procore's master list? and Add a Unit of Measure to the Unit of Measure Master List.
    • Unit Cost
      Enter the monetary cost in this box to indicate the cost per unit of measurement.
    • Cost ROM
      Enter a numeric estimation of the cost's Rough Order of Magnitude (ROM). This entry has NO financial impact on values in other Procore tools. You can add the ROM to the Budget by following the steps in Add Cost ROM, RFQ & Non-Commitment Cost Source Columns to a Budget View.
       NoteS
      • If you are using the enhancements for unit-based financials, this column will capture unit changes to UOM on both Rev ROM and Cost ROM.
      • If you follow those steps to show the ROM value in the budget and the change event line item ends up having no cost, you will need to zero (0) out the ROM to remove it from the budget.
       
  5. Click Update.