Creating an Owner Change Order

  1. FROM RFPs

    1. Tasks > Change Orders > Create Owner Change Order

    2. Type Name > Next > Import RFP Cost Item > Select RFP (drop down) > Select RFP > Check boxes of RFP items to be included > Add Items to Change Order > Repeat as needed > Close > adjust as needed > Save

    3. Return to Change Order List > Check box next to Owner Change Order > Owner Change Order Tasks > Sign Checked Owner Change Order > Select Recipients > I agree > OK > Close Window

  2. NO RFPs

    1. Tasks > Change Orders > Create Owner Change Order

    2. Type Name > Next > Add Item 1 Description > Type Description > Add Item 1 Cost > Select Cost Codes > Add Division Items >

      1. Input raw Owner Price. Markups will be applied using default settings in Administration > Default Rates. Each markup rate can be changed per line item on the change order.

      2. Input Sub Price. In the case of a .S (subcontractor) expense type code, this should be the amount that you will award the sub. For all others, refer to 3 to decide what amount to use.

      3. Budget Implications of an Approved Owner Change Order - This must be thought of as 2 simultaneous changes to your budget.

        1. The total amount of the change order (including markups) will apply to OHP and Contract Amount.

        2. The sub price for each cost code in the change order will extract from the profit and apply it to the Prior C.O. Amount column in the row of the cost code.

        3. The final result to the budget will be a change to the Prior C.O. Amount in the amount of the sub price of the respective cost code and a change to OHP in the amount of the difference between the Owner change order total and the sum of the sub prices.

      4. Return to Change Order List

        1. If cost code is already in the job and awarded to a sub, Paskr assigns it to the appropriate sub

        2. If cost code is new to the job, by default it is assigned to the GC.

          1. To assign it to a sub: Click blue + to expand > Click blue $ amount > Select Change Order Item from the drop down > Request Sub/Vendor Pricing > Select blue cost item > Select invite next to the desired sub/s > Close

      5. Request Sub pricing if desired

        1. Check All or select boxes to request > Send checked invites > Send CO invites > Close Window. You will be notified via email when pricing has been submitted

        2. To accept Sub/Vendor pricing or to input cost for sub

          1. Click blue + to expand > click blue $ amount > Select Change Order Item from the drop down > type amount Sub Price box (if entering for sub)

          2. Select circle to the left of selected vendor > Save > Close

      6. Enter Owner price

        1. On Change Order list screen, expand owner change order by selecting the blue number to the left of the change order

        2. Add owner price in box > Save

    3. To execute change order: Return to Change Order List > Check box next to Owner Change Order > Owner Change Order Tasks > Sign Checked Owner Change Order > Select Recipients > I agree > OK > Close Window

  3. ASSIGNING AN ADDITIONAL COST CODE TO A SUB WITH A LOCKED SUBCONTRACT THROUGH A CHANGE ORDER

    1. Sub Only

      1. If it will be a sub only change order, go to the award subs page and change the award amount to the change order amount and change the company to the subcontractor. This will open a sub only change order for you to complete.

    2. Owner/Sub change order

      1. Important – If it will be a sub change order that is involved in an owner change order, first go to the award subs page and zero out the award amount for the cost code(s) you will use in the change order. This will prepare your budget for the change order award amount.

      2. Leave the cost item awarded to you on the award subs page.

      3. Prepare your owner change order using the cost code(s) you changed on award subs.

      4. Return to the change order list & check the box next to the owner change order.

      5. In the orange bar select Request Sub/Vendor pricing & select the blue cost code to invite a sub (sending an invitation to the sub is optional)

      6. On the change order list screen, expand the owner change order with the plus sign which reveals the sub change order and click the blue price link for that item.

      7. Click the circle next to the subs name and enter the amount in that box.

      8. Return to the change order list to execute the change order.

  4. INTRODUCE A NEW COST CODE AND SUB THROUGH AN OWNER CHANGE ORDER

    1. Create Owner CO adding new cost code > Save > Return to CO List

    2. Request Sub Pricing – The added item is assigned to the GC unless you invite a sub to participate.

      1. Click the blue '+' to expand the change order

      2. Click the blue $ amount for the Sub Change Order

      3. Select Change Order item using the drop down list

      4. Type subcontractor scope in the Sub CO Description box

      5. Click the blue 'Request Sub/Vendor Pricing'

      6. Click the blue code item

      7. Invite the new subs

        1. Send for pricing or

        2. x out at this point to input the amount

          1. Click blue $ amount

          2. Enter Sub pricing

          3. Select by clicking circle left of chosen Sub

          4. Save

    3. After Sub pricing is submitted, select the Sub

      1. Open Change Order List

      2. Click the blue '+' to expand the change order

      3. Click the blue $ amount for the Sub Change Order

      4. Here you can enter the $ amount if Sub has not submitted through Paskr

      5. Click the circle to the left to choose the sub > Save

    4. Add to Owner Change Order

      1. Select the blue number of the owner change order to edit.

      2. Type desired owner price and adjust rates if needed.

      3. Save

  5. USING A CONTINGENCY ACCOUNT

    1. Include the line item 'Contingency' with the allocated budget amount to your project in the bidding phase or add it via internal change order in the In Progress phase (this will pull from your OH & P).

    2. Executing changes using the contingency account (net zero owner change orders)

      1. Create an owner RFP or Change Order

      2. Add item 1 for 1st scope change

      3. Add cost items to include the items you wish to increase or add to the project. Add the contingency cost code to each item in the change order or RFP.

      4. Request pricing from subs or add costs to the sub box yourself (This will create a change to these line items on your budget report when the owner change order is approved).

      5. Add the cost to the owner in the owner boxes. Be sure to zero out all markups (Burden, S Tax, General Liability, Overhead & Profit) as you have already applied these costs to contingency in the bidding phase.

        1. Owner price – Sub Price = change to OH & P.

        2. Reduce Contingency by entering a negative number equal to the total of the item. An owner total not equal to zero will change the owner contract amount by that amount so be sure to offset the items accurately with the contingency owner amount.

      6. Sign the change order to send it to the owner. This communicates to him that you have made a change to the contingency account.

      7. Once he approves, you can also add these net zero change orders to your pay application to show a running total of changes each month.

  6. WHEN YOU HAVE MULTIPLE OWNER CHANGE ORDERS THAT ARE NOT APPROVED, you must take an action on all previous change orders before you approve the last one in the list. Following is a list of possible actions and their outcomes. This methodology is to preserve the correct contract amount and add change orders in a numerically sequential fashion.

    1. Delete current change order.

    2. Take one of the following actions on all previous unapproved change orders.

      1. 'Approve'

        1. This action adds the change order amount to the contract as if the owner signed it electronically. Note: Owner can still log in and digitally sign.

      2. 'Not accept' – This puts the change order on hold if it is rejected but reserves it in its original form to be recreated and/or edited in the future.

        1. This action will cancel any embedded sub change orders with a reverse change order and give the total owner change order a zero amount.

        2. This will also give you the option to recreate this change order at a later time. If you recreate, Paskr creates an exact duplicate and moves it to the bottom of the list.

Video Tutorial for Creating a Change Order