Change orders serve as vital documents in construction projects, allowing parties to modify original agreements when necessary. In Procore, purchase orders and subcontracts fall under the category of "commitments," and when these commitments require modification, change orders document those alterations. Effective change management significantly reduces project risk, improves approval rates, and facilitates timely payments for all parties involved.
Creating change orders properly ensures your project's financial data remains accurate and up-to-date. Every expense gets documented appropriately, and any modifications to the scope of work receive proper recording and approval. This documentation creates a clear paper trail that protects all stakeholders and maintains project transparency.
Change orders in Procore come in several varieties, including Commitment Change Orders (CCO) for subcontracts and purchase orders, Prime Contract Change Orders (PCCO) for owner-funded contracts, and Potential Change Orders (PCO) for preliminary negotiations. The system accommodates multiple tier configurations, which can slightly alter your workflow depending on your specific project settings.
Before diving into the creation process, familiarizing yourself with key Procore terms will make navigation much smoother. The platform uses specific language that might differ from what you're accustomed to in other systems.
Commitments represent the contractual agreements in Procore, encompassing both purchase orders and subcontracts. When you need to modify these agreements, you'll create a Commitment Change Order (CCO). For tracking changes affecting project scope, Procore offers the Change Events tool, which—when enabled—alters the buttons and workflows available to you.
Your project's tier configuration determines how many steps you'll need to complete when creating a change order. Projects might use a 1-tier configuration (direct creation) or a 2-tier configuration (requiring preliminary steps). The Schedule of Values (SOV) breaks down costs associated with the change order, detailing specific line items and their amounts.
Many organizations enhance their Procore experience through integrations with tools like DocuSign® for digital signatures or external Enterprise Resource Planning (ERP) systems for financial accounting. These integrations streamline processes but may impose certain restrictions, such as character limits on titles or descriptions.
Proper preparation ensures a smooth change order creation process. Taking time to verify permissions and understand your project configuration prevents frustrating roadblocks later.
User permissions play a crucial role in determining your ability to create and manage change orders. For commitment change orders, you'll need 'Admin' level permissions on the project's Commitments tool. If your project utilizes the Change Events tool, you must also have standard or higher permissions for that specific tool.
Your project configuration significantly impacts the change order creation process. Projects with the Change Events tool enabled follow a different workflow than those without it. Similarly, tier configurations determine whether you create commitment change orders directly (1-tier) or first create a commitment potential change order before finalizing (2-tier).
External system integrations require special attention to their unique requirements. ERP systems often impose character limits on fields like titles and descriptions, while DocuSign® integration adds specific steps for collecting digital signatures. Familiarizing yourself with these requirements beforehand prevents rework and delays.
Creating a change order in Procore follows a logical sequence that begins with accessing the right tools. The process remains straightforward once you understand the basic navigation and required information.
Start by logging into your Procore account and selecting your project. Navigate to the "Commitments" tool from the project menu, which houses all your purchase orders and subcontracts. Within the "Contracts" section, locate the specific commitment requiring modification and click the "Edit" button to access available options.
The next steps depend on whether your project has the Change Events tool enabled. Without this tool, you'll see a "Create Commitment CO" button to click directly. With the tool enabled, you'll instead click "Create Change Event" and follow Procore's guided steps before creating your commitment change order from the completed change event.
Once in the change order form, you'll need to complete several fields with relevant information. The system automatically assigns a sequential number and populates fields like "Date Created" and "Created By." You'll manually enter a descriptive title (mindful of character limits), select the appropriate status, and choose a change reason from available options.
The general details section of a change order contains critical information that affects approval, tracking, and implementation. Completing this section thoroughly ensures all stakeholders understand the change's purpose and impact.
Select the appropriate accounting method, which typically inherits settings from the underlying contract. Enter due dates and invoiced dates as applicable to your situation. Choose a designated reviewer responsible for approving or rejecting the change order once it reaches "Pending - In Review" status, and identify who submitted the change request.
Provide a detailed description explaining the change order's purpose and necessity. If your project uses an ERP system, be mindful of potential character limits affecting this field. Indicate any schedule impact by entering the estimated additional days the change might add to the project timeline, which may automatically adjust the "Estimated Completion Date" in beta versions of Procore.
Complete the remaining fields by specifying the impacted location, adding references to related materials or drawings, and marking appropriate checkboxes for execution status, field changes, or payment completion. Attach supporting documents that justify or explain the change in greater detail. Once all information is entered, click "Create" to finalize or "Create & Email" to notify designated reviewers immediately.
The Schedule of Values (SOV) provides a comprehensive breakdown of costs associated with your change order. This detailed financial component ensures accurate tracking of every expense related to the modification.
Navigate to the "Schedule of Values" tab within your change order screen and click the "Edit" button to access the SOV form. Click "Add Line" to begin entering the financial details of your change order. For each line item, you'll need to select appropriate options from several dropdown menus and input fields.
The following elements must be completed for each SOV line:
If your project uses tax codes, select the appropriate option from the dropdown menu. After completing all required fields, click "Add" to include the line item in your SOV. Repeat this process for additional line items as needed, then click "Save" to finalize the entire Schedule of Values.
Projects with the Change Events tool enabled follow a modified workflow that adds preliminary steps before creating the actual change order. Understanding these differences prevents confusion and ensures proper documentation.
When the Change Events tool is active, you won't see the "Create Commitment CO" button when editing a commitment. Instead, you must first click "Create Change Event" and complete the guided process in the Change Event form. Only after creating this preliminary documentation can you generate the commitment change order based on the change event.
Tier configurations further modify this process based on your project settings. A 1-tier configuration allows you to generate the change order directly after creating the change event. In contrast, a 2-tier configuration requires you to first create a "commitment potential change order" as an intermediate step before finalizing the actual change order.
ERP integrations impose additional considerations when working with change events. Systems like Sage 300 CRE® or Integration by Ryvit may have specific limitations regarding field lengths or data formats. Always consult your ERP documentation for these details to ensure smooth data transfer between systems. Similarly, if using DocuSign® integration, consider marking the status as "Out for Signature" before launching the digital signature process for optimal workflow automation.
Effective change order management extends beyond simply completing the required fields. Following established best practices ensures smoother processes and better outcomes for all stakeholders.
Always verify you have the necessary permissions before initiating a change order. This simple check prevents frustrating roadblocks midway through the process. Adhere strictly to the guidelines in your construction contract regarding change notifications and timelines, typically requiring notification within 5-10 days of the triggering event.
Maintain detailed documentation throughout the change order process. Include comprehensive descriptions and attach supporting evidence such as photos, drawings, or written explanations that justify the change. This thorough documentation protects your position and provides clarity for all parties involved in the approval process.
The following practices will streamline your change order management:
Regular communication with designated reviewers prevents approval bottlenecks. Ensure they understand their role and responsibilities, and follow up appropriately when approvals seem delayed. This proactive approach keeps the process moving forward efficiently.
Even experienced Procore users encounter occasional challenges when creating change orders. Recognizing these common issues and knowing how to address them minimizes delays and frustration.
Sequential numbering problems sometimes arise when teams use dual workflows, such as separate processes for internal versus external change orders. Consider using prefixes (e.g., I-001 for internal orders) to prevent confusing gaps in your numbering sequence. This simple solution maintains clarity while accommodating different workflow needs.
Integration limitations frequently cause headaches when working with external systems. ERP integrations often impose character limits on fields like titles and descriptions, potentially truncating important information. Always verify these limitations before completing your change order, adjusting your content accordingly to prevent data loss during synchronization.
Workflow confusion can occur when switching between projects with different configurations. The presence or absence of the Change Events tool significantly alters the available options and required steps. Take time to verify each project's specific configuration before beginning the change order process, especially when managing multiple projects simultaneously.
Understanding the theoretical process helps, but seeing a practical application makes the concepts clearer. Consider this scenario to illustrate how Procore's change order system works in practice.
A project manager discovers that unforeseen site conditions require additional excavation work from a subcontractor. After discussing the situation with the subcontractor and agreeing on scope and cost changes, the manager logs into Procore to document this modification. They navigate to the Commitments tool, locate the relevant subcontract, and click "Edit" to access change order options.
Since their project doesn't use the Change Events tool, they click "Create Commitment CO" directly. They complete the general details, providing a descriptive title ("Additional Excavation Due to Rock Formation"), selecting "Existing Condition" as the change reason, and estimating a five-day schedule impact. In the description field, they detail the unexpected rock formation discovered during initial excavation and explain why additional work is necessary.
Moving to the Schedule of Values tab, they add line items for equipment rental, labor costs, and disposal fees associated with the additional excavation. After reviewing all information for accuracy, they click "Create & Email" to notify the designated reviewer. Once approved and executed, this change order becomes part of the permanent project record, justifying the additional costs and timeline extension.
Efficient approval workflows significantly impact project timelines and team satisfaction. Optimizing these processes reduces delays and prevents frustration among stakeholders.
Digital signatures dramatically accelerate approval cycles compared to traditional paper methods. If your organization has enabled the Procore + DocuSign® integration, leverage this feature to collect signatures electronically. Mark the status as "Out for Signature" before launching DocuSign® to ensure proper status tracking. After completion, the system automatically updates the change order status to "Approved" and marks it as "Executed."
Clear communication remains essential throughout the approval process. Ensure designated reviewers understand their responsibilities and expected response timeframes. Use Procore's notification features to alert reviewers when action is required, and follow up appropriately if responses seem delayed.
Consider implementing approval deadlines to prevent bottlenecks. Establish clear expectations regarding review timeframes, and build these expectations into your project schedule. This proactive approach prevents situations where change orders languish in "Pending" status for extended periods, potentially impacting project progress and financial reconciliation.
Thorough documentation serves multiple purposes beyond immediate approval needs. Proper record-keeping protects all parties and provides valuable historical data for future projects.
Maintain comprehensive records of all change order communications, including emails, meeting notes, and verbal agreements confirmed in writing. Attach these communications to the change order in Procore to create a complete audit trail. This documentation proves invaluable if disputes arise later regarding the change's necessity or scope.
Regularly review your change order log to identify patterns or recurring issues. This analysis helps improve future estimating and planning by highlighting areas where changes frequently occur. Use these insights to refine your initial scoping processes and reduce the volume of change orders on subsequent projects.
The following documentation practices enhance your change order management:
These practices create a defensible record that protects all parties and facilitates clear communication throughout the project lifecycle.
Creating effective change orders in Procore requires understanding the platform's tools, following established processes, and maintaining thorough documentation. Whether you're working with direct commitment change orders or navigating the Change Events tool in a tiered configuration, attention to detail ensures successful outcomes.
The key to successful change order management lies in capturing all necessary information—from descriptive titles and detailed explanations to accurate schedule impacts and comprehensive cost breakdowns via the Schedule of Values. This thorough approach creates transparency and builds trust among all project stakeholders.
Digital tools like DocuSign® integration and ERP connections streamline the process when properly configured and understood. Take time to learn these features' capabilities and limitations to maximize their benefits. Regular training ensures your team remains comfortable with Procore's change order tools, even as the platform evolves and improves.
Remember that change orders serve both immediate and long-term purposes. Beyond facilitating current project modifications, they create valuable historical records that inform future planning and estimating. This dual purpose makes proper documentation and process adherence even more important for organizational success.
Mastering Procore's change order system transforms a potentially chaotic aspect of construction management into a streamlined, documented process that protects all stakeholders. The steps outlined in this guide provide a roadmap for creating effective change orders that maintain financial accuracy and project transparency.
Implementing these practices doesn't just improve your current project management—it builds a foundation for future success. Each properly documented change order contributes to your organization's knowledge base, helping teams avoid similar issues on future projects or at least anticipate and budget for them appropriately. This continuous improvement cycle drives efficiency and profitability across your entire project portfolio.
Start applying these techniques on your next change order to experience the benefits firsthand. You'll likely notice immediate improvements in approval times, documentation quality, and stakeholder satisfaction. Over time, these improvements compound, creating a more predictable and manageable construction process that benefits everyone involved—from owners and contractors to subcontractors and suppliers. Your projects will run more smoothly, your financial tracking will improve, and your team will appreciate the clarity and structure that proper change order management brings to even the most complex construction challenges.