How to Create a Commitment Change Order in Procore

Understanding Commitments and CCOs

In Procore, purchase orders and subcontracts collectively form what we call commitments. A commitment represents a contractual agreement between a buyer (such as a project owner or general contractor) and a seller (like a subcontractor or vendor). The seller takes responsibility for completing specific project work or fulfilling orders as agreed with the buyer.

When circumstances change and the original agreement needs modification, a commitment change order (CCO) becomes necessary. These modifications might stem from client requests, design changes, allowance adjustments, unexpected site conditions, or even backcharges for work that didn't meet specifications.

Construction projects are dynamic environments with constantly evolving requirements. Understanding how to properly document and manage these changes through Procore's commitment change order system ensures that all parties remain aligned and that project documentation stays accurate throughout the lifecycle of your project.

Why Proper CCO Management Matters

Effective management of commitment change orders directly impacts your project's success in multiple ways. Accurate scope and cost tracking ensures that every modification to the original contract is properly documented, preventing scope creep and unexpected budget overruns. This detailed documentation creates a clear financial picture of your project at any given moment.

Maintaining comprehensive records of all changes also establishes a robust audit trail for compliance purposes. This documentation proves invaluable during internal reviews, owner inquiries, or potential disputes about what work was approved and when. The transparency created through proper CCO management helps protect all parties involved.

Clear communication stands as another major benefit of proper CCO handling. When changes are thoroughly documented in Procore, all stakeholders—from project managers to subcontractors—can access the same information about modifications to scope, timeline, and costs. This shared understanding reduces misunderstandings and keeps everyone focused on project objectives rather than resolving conflicts.

For organizations using Enterprise Resource Planning (ERP) systems alongside Procore, well-managed CCOs ensure that financial data flows smoothly between platforms. This integration maintains consistency between your project management and accounting systems, eliminating the need for duplicate data entry and reducing the risk of financial discrepancies.

One-Tier vs Two-Tier Configurations

Procore offers flexible configuration options to match your organization's preferred change management workflow. The platform supports both one-tier and two-tier approaches to handling commitment change orders.

In a one-tier configuration, you create commitment change orders directly within the Commitments tool. This streamlined approach works well for smaller projects or organizations with simpler approval processes. The direct creation method reduces administrative steps and allows for faster processing of changes, which can be particularly beneficial when quick turnaround times are essential.

The two-tier configuration introduces an additional layer to the process. Before creating a commitment change order, you first generate a potential change order through the Change Events tool. This preliminary step allows for more thorough review and approval before finalizing the change. Organizations managing complex projects with multiple stakeholders often prefer this approach because it provides greater control over the change management process.

Your organization's specific needs and project complexity should guide your choice between these configurations. Larger companies with formal approval hierarchies typically benefit from the additional oversight provided by the two-tier system, while smaller firms might find the one-tier approach more efficient for their operations.

Creating CCOs Without Change Events

When your project doesn't have the Change Events tool enabled, the process for creating commitment change orders follows a more direct path. Before beginning, ensure you have Admin-level permissions for the project's Commitments tool, as this access level is required to create or modify change orders.

Start by navigating to your project's Commitments tool, where all purchase orders and subcontracts are managed. Locate the specific commitment that requires modification and select the "Edit" option to access its details. Within the commitment's interface, look for the "Create Commitment CO" button, which initiates the change order creation process.

The system will guide you through completing necessary information such as the change order title, description, and financial impact. If your organization uses electronic signatures through integrations like DocuSign, you'll have the option to enable this feature during creation. This direct approach simplifies the change order process while still maintaining proper documentation of all modifications.

Creating CCOs With Change Events Enabled

Projects with the Change Events tool activated follow a more structured approach to commitment change orders. This method provides enhanced tracking and approval capabilities for complex projects with multiple stakeholders.

Begin by creating a Change Event that documents the potential modification. This preliminary step captures all relevant details about the proposed change, including its scope, cost implications, and justification. The Change Event serves as a foundation for subsequent commitment change orders and helps maintain a comprehensive record of all project modifications.

After completing the Change Event documentation and securing necessary approvals, you can convert it into a formal commitment change order. The system will prompt you to "Create a Commitment Change Order from a Change Event," transferring the relevant information to streamline the process. This two-step approach ensures thorough review before changes are officially incorporated into commitments.

The Change Events workflow provides valuable benefits for projects requiring detailed change tracking. It creates clear connections between the original change request and the resulting commitment modifications, which proves especially useful during project reviews or audits. This comprehensive documentation helps demonstrate due diligence in evaluating and approving changes throughout the project lifecycle.

Step-by-Step CCO Creation Process

Creating a commitment change order involves several detailed steps that ensure all necessary information is captured correctly. Understanding each component helps you navigate the process efficiently while maintaining accurate project records.

Setting Up General Information

The General tab serves as the foundation for your commitment change order, capturing essential identifying information and key details. If your organization uses the DocuSign integration, you'll see a checkbox enabled by default that allows for electronic signature collection. This feature streamlines the approval process by eliminating the need for physical signatures.

The system automatically assigns a sequential number to each change order based on previous entries, creating a logical tracking system. Similarly, the revision field starts at zero and can be updated if the change order undergoes modifications after initial creation. These automatic numbering features help maintain organized records throughout the project.

Several fields populate automatically to establish a clear audit trail, including the creation date and the name of the user creating the change order. For subcontracts, the contract company and contract fields also auto-populate based on the original commitment information. These auto-filled fields reduce data entry requirements while ensuring consistency across project documentation.

You'll need to provide a descriptive title that clearly identifies the purpose of the change order. Keep in mind that if your organization uses an ERP integration, the title field may have character limitations that you should observe. Select the appropriate status from the available options, such as "Pending – In Review," to indicate the current stage in the approval process.

Completing Additional Details

After establishing basic information, you'll need to specify additional details that provide context and justification for the change order. These fields help all stakeholders understand the nature and impact of the proposed modifications.

The change reason field requires you to select the primary driver behind the modification. Your options typically include:

• Client Request: Changes requested by the project owner
• Design Development: Modifications resulting from evolving design specifications
• Allowance Adjustment: Changes to predetermined allowance amounts
• Existing Condition: Modifications needed due to unexpected site conditions
• Backcharge: Costs being charged back to a subcontractor for deficient work

The accounting method field inherits settings from the original contract to maintain consistency in financial tracking. You'll also need to specify due dates and invoicing information to establish clear timelines for the change order process. These temporal markers help keep the project on schedule despite modifications to the original scope.

Identifying the designated reviewer ensures the change order reaches the appropriate person for approval. This individual must have Admin-level permissions on the Commitments tool to complete the review process. Similarly, indicating who submitted the change request adds transparency to the process by documenting the origin of the modification.

Provide a comprehensive description that explains what is changing and why the modification is necessary. If the change affects the project timeline, estimate the schedule impact in days so that project planning can be adjusted accordingly. This information helps all stakeholders understand how the change will influence both the scope and timeline of the project.

Finalizing and Processing the CCO

Once you've completed all required fields on the General tab, you're ready to create the commitment change order in the system. You have two options for finalizing the process, depending on your immediate communication needs.

1. Click "Create" to generate the change order without sending notifications
2. Select "Create & Email" to generate the change order and automatically notify relevant parties via email

After creation, Procore may automatically update certain statuses based on your configuration. For example, if you're using DocuSign, the system might change the status to "Out for Signature" before launching the electronic signature process. Once all signatures are collected, the status typically updates to "Approved" to reflect the completed approval process.

The system maintains a detailed history of all status changes and actions taken on the change order. This comprehensive audit trail proves invaluable for tracking the progression of changes and identifying any bottlenecks in the approval process. Having this historical record also supports compliance requirements and provides documentation in case of disputes.

Adding Schedule of Values to CCOs

The Schedule of Values (SOV) component represents the financial heart of your commitment change order. This section details the specific cost impacts associated with the change, ensuring proper financial tracking throughout the project.

To add an SOV to your change order, navigate to the "Schedule of Values" tab within the change order interface. Click "Edit" to enter modification mode, then select "Add Line" to begin creating line items. Each line requires several pieces of information to properly categorize and track the associated costs.

For each SOV line item, you must specify the following details:

• Select an appropriate prime contract line item from the dropdown menu
• Choose a related change event line item if applicable
• Specify the relevant sub job if your project has this feature enabled
• Assign the correct budget code to ensure proper financial tracking
• Provide a clear description and the cost amount for the line item
• Select applicable tax codes if your project uses tax tracking

After adding all necessary line items, save the Schedule of Values to incorporate it into the change order. The system will calculate totals automatically, providing a clear picture of the financial impact. This detailed breakdown helps all stakeholders understand exactly how the change affects the project budget and ensures that costs are properly allocated within your financial tracking systems.

ERP Integration Considerations

For organizations using Enterprise Resource Planning (ERP) systems alongside Procore, several additional factors require attention during the change order process. Understanding these integration points helps ensure smooth data flow between systems and maintains financial accuracy across platforms.

Most ERP systems impose character limitations on certain fields, particularly the Title field. Before creating change orders, familiarize yourself with these restrictions to avoid truncation or synchronization issues. Exceeding these limits can cause data transfer problems that might require manual correction, creating unnecessary administrative work.

The approval and synchronization process typically follows a specific sequence. After a commitment change order reaches "Approved" status in Procore, it usually needs to be pushed to the ERP Integrations tool for acceptance by accounting personnel. This handoff ensures that financial impacts are properly recorded in both systems and maintains consistency across platforms.

Many organizations benefit from creating specialized reports that track which change orders have been successfully exported to their ERP system. These reports help identify items that might have missed the synchronization process, preventing financial discrepancies between systems. Consider establishing regular review procedures to verify that all approved change orders have been properly transferred to your accounting system.

Advanced Change Order Management

Managing Multi-Tier Workflows

The choice between one-tier and two-tier change order systems significantly impacts your project's workflow and approval processes. Understanding the advantages of each approach helps you select the most appropriate configuration for your specific needs.

One-tier systems excel in environments where simplicity and speed are priorities. This direct approach works well for smaller projects with fewer stakeholders or for subcontractor change orders that don't affect overall project funding. The streamlined process reduces administrative overhead and allows for faster implementation of necessary changes.

Two-tier systems provide enhanced control and documentation for complex projects. The preliminary "Potential Change Order" stage allows for thorough review before commitment modifications are finalized. This approach proves particularly valuable when changes affect contingency funds or require owner approval before implementation. The additional documentation created through this process helps maintain clear audit trails throughout the project lifecycle.

Many contractors find that the two-tier approach helps manage the flow of information between subcontractors and owners. The system creates natural checkpoints for review and approval, ensuring that all stakeholders have appropriate input before changes are finalized. This structured approach helps prevent miscommunications and ensures that all parties remain aligned throughout the change management process.

Bulk Creation Capabilities

For projects with extensive changes affecting multiple vendors or contracts, Procore's bulk creation functionality offers significant time savings. This feature automatically organizes change event line items by vendor and contract, generating multiple draft commitment change orders simultaneously.

The bulk creation process reduces manual data entry by automatically populating Schedule of Values information from selected change event line items. This automation not only saves time but also minimizes the risk of transcription errors that might occur during manual entry. The result is a more efficient and accurate change order process, particularly for complex projects with numerous modifications.

When using bulk creation, the system maintains proper relationships between vendors, contracts, and change items. Each generated change order contains only the relevant information for its specific vendor or contract, ensuring clear communication and preventing confusion. This targeted approach helps subcontractors and vendors focus on the changes that directly affect their scope without being distracted by unrelated modifications.

The time savings from bulk creation can be substantial, especially on large-scale projects. What might take hours to accomplish manually can be completed in minutes through the automated process. This efficiency allows project managers to focus on evaluating and implementing changes rather than spending excessive time on administrative tasks.

Funding Source Management

Tracking the funding sources for change orders represents a common challenge in construction project management. When increasing a subcontractor's scope by $10,000, for example, you need to clearly document where those funds are coming from within the project budget.

Procore's approach to funding source management typically involves separate but related processes. After processing the commitment change order, you'll often need to create a budget modification to transfer funds from the appropriate source (such as contingency) to the affected subcontract line. This two-step process maintains clear documentation of both the commitment change and the corresponding budget adjustment.

Some organizations prefer to include funding details directly within the change order by creating multiple line items on the Schedule of Values. One line might show the additional cost for the subcontract while another represents the corresponding withdrawal from the contingency fund. This approach keeps all financial information within a single document but requires careful setup to ensure proper tracking.

The best practice generally involves separating the change order process from budget modifications. This clear delineation helps maintain accurate records in both Procore and integrated ERP systems. While it might seem more convenient to handle everything in one step, the separation actually improves financial clarity and ensures that all transactions are properly categorized in your accounting systems.

Streamlining Your CCO Workflow

Establishing consistent processes for commitment change orders helps your team operate more efficiently while maintaining accurate project records. A well-defined workflow ensures that all necessary information is captured and that appropriate approvals are secured before changes are implemented.

Start by creating clear templates and standards for change order documentation. Consistent formatting and required information make it easier for all team members to create and review change orders. These standards might include specific naming conventions, required supporting documentation, or standardized descriptions for common change types.

Regular training ensures that all team members understand the change order process and their responsibilities within it. This training should cover not only the technical aspects of creating change orders in Procore but also the organizational policies governing change approval and implementation. Well-informed team members make fewer errors and process changes more efficiently.

Consider establishing change order review meetings at regular intervals during your projects. These dedicated sessions provide opportunities to evaluate pending changes, discuss implications, and make approval decisions. The structured approach prevents change orders from languishing in review status and helps maintain project momentum despite necessary modifications.

Leveraging Reporting for Change Insights

Procore's reporting capabilities offer valuable insights into your change order processes and their impact on project performance. Custom reports can help you identify trends, track approval timelines, and monitor financial implications across your project portfolio.

Create specialized reports that track key metrics related to your change orders, such as:

• Average approval time from submission to final signature
• Percentage of changes by reason category (client request, design development, etc.)
• Financial impact of changes as a percentage of original contract value
• Distribution of changes across different project phases

These metrics help identify potential process improvements and provide early warning of projects experiencing excessive changes. By analyzing patterns across multiple projects, you can develop strategies to address common change triggers and reduce their frequency or impact.

Schedule regular reviews of change order reports with project teams and leadership. These discussions help everyone understand how changes affect project outcomes and identify opportunities for improvement. The insights gained from these reviews can inform adjustments to estimating practices, contract language, or project planning to reduce the need for changes in future projects.

Consider sharing appropriate change metrics with owners and key stakeholders. This transparency helps build trust and demonstrates your commitment to effective project management. When stakeholders understand the nature and impact of changes, they often become more engaged in finding solutions that minimize disruption to the project.

Mastering Procore's CCO Capabilities

Commitment change orders represent a critical component of successful construction project management. By mastering Procore's CCO capabilities, you position your team to handle the inevitable changes that occur during projects with confidence and precision.

Take time to explore advanced features beyond the basic change order creation process. Familiarize yourself with approval workflows, electronic signature integration, and reporting capabilities that can enhance your change management practices. These additional tools help streamline processes and provide greater visibility into change impacts across your projects.

Consider designating change management champions within your organization who develop expertise in Procore's CCO functionality. These individuals can serve as resources for other team members, provide training, and help establish best practices tailored to your organization's specific needs. Their specialized knowledge helps maximize the value you derive from Procore's change management capabilities.

Remember that effective change management extends beyond the technical aspects of creating change orders in Procore. It also involves clear communication with all stakeholders, thorough documentation of change justifications, and careful consideration of impacts on project timelines and budgets. When these elements work together, your projects can adapt to necessary changes while maintaining control over scope, schedule, and costs.

Transform Your Project Change Management Today

Mastering commitment change orders in Procore represents a significant opportunity to improve your construction project management practices. The detailed documentation, streamlined workflows, and integrated financial tracking help maintain control even as project requirements evolve.

Start by assessing your current change management processes and identifying opportunities for improvement. Consider whether your current tier configuration aligns with your project complexity and organizational structure. Small adjustments to your approach can yield significant benefits in terms of efficiency and accuracy.

Remember that successful change management requires both technical knowledge and effective communication. Ensure that all team members understand not only how to create change orders in Procore but also the importance of thorough documentation and timely processing. This shared understanding helps maintain project momentum despite necessary modifications.

The construction industry will always involve changes—they're an inevitable part of bringing complex projects to life. By leveraging Procore's commitment change order capabilities effectively, you transform potential disruptions into well-managed adjustments that keep your projects moving forward successfully. Your improved change management practices will contribute to stronger client relationships, better financial outcomes, and more predictable project delivery.