How to Create a PCCO in Procore from a CE

Understanding Change Management Workflow

Every construction project experiences changes during its execution, whether they arise from owner directives, design clarifications, unforeseen conditions, or other issues that impact the scope of work. Managing these changes efficiently is vital for accurate budgeting and cost control. Procore's robust change order workflow plays an important role in ensuring that potential changes are tracked, evaluated, and approved properly.

Before diving into the creation process, it's important to understand the terminology used in Procore's change management system. A Potential Change Order (PCO) is an initial record that captures the estimated cost, schedule impact, and scope details of a potential change. PCOs are typically created once a change event is raised and are used to track possible adjustments to the contract. When a PCO is approved and becomes an official adjustment to the contract, it can transition into a Prime Contract Change Order (PCCO), which represents a finalized change order that will affect the owner's contract and the associated budget.

By implementing PCOs, construction teams establish a structured way to record, monitor, and evaluate the cost and schedule impacts of changes. The PCO grid displays key budget and cost columns such as Estimate (initial estimated amount often entered by the project manager), Proposed (cost submitted by the trade contractor), Approved (agreed-upon amount), and Applied (amount that will be applied to the project budget). These fields provide clear visibility into how a change will affect the project overall.

The Role of Change Events in Procore

A change event (CE) in Procore serves as the trigger for initiating the change order process. These events typically capture modifications to the scope of work, which could stem from various sources such as owner requests, design clarifications, unforeseen site conditions, or contractor issues noted during execution.

When a change event occurs, project teams create a PCO to document the potential change, assess its impact, and eventually convert it into a PCCO that requires owner approval. The workflow typically follows a sequential process where a change event triggers the creation of a PCO, which undergoes internal review with additional data such as schedule days and cost estimates. Upon approval, the PCO transitions into a PCCO that moves through the remainder of the change order process, potentially including external review or integration with electronic signature tools.

Understanding this process is essential for effectively utilizing Procore's system to manage project changes. The structured approach ensures that all modifications are properly documented, reviewed, and approved before implementation, maintaining budget integrity and schedule accuracy throughout the project lifecycle.

Prerequisites for Creating PCCOs

Before beginning the PCCO creation process, several key prerequisites must be in place to ensure smooth workflow execution. Taking time to verify these elements will prevent complications later in the process.

First, confirm that your Procore project has the appropriate change events tool enabled and that you possess the required permissions to create and modify Potential Change Orders. Your project settings should align with either a one-tier or multi-tier change order configuration, as the PCCO process may vary slightly depending on this setup. For projects utilizing ERP integration, verify that the integration settings for change orders are correctly configured to prevent data synchronization issues.

Additionally, familiarize yourself with your company's specific workflow requirements for change orders. Some organizations implement custom fields or approval processes beyond Procore's standard configuration. Understanding these company-specific elements will help you navigate the system more effectively and ensure compliance with internal protocols.

Step-by-Step PCCO Creation Process

When a change event occurs, the designated Procore user should thoroughly document all details that triggered the change. This documentation forms the foundation for the subsequent PCO creation process.

To create a PCO, navigate to the Financials section in your project menu and select "Potential Change Orders." Click the "Add" or "Create" button on the navigation toolbar to open the creation dialog. Set the record details including a unique number (if autonumbering isn't enabled), creation date, and a clear description of the change. Complete all required fields marked with an asterisk, such as requested days for extended work, change reason, and cost-related fields. Once all details are entered, save the record to create the initial PCO draft.

After creating the PCO, you'll need to populate it with specific line items. Each PCO item details a specific aspect of the change:

1. Click on the "Potential Change Order Items" tab to open the item grid.
2. Add new items by clicking the "Add" or "+" button for each cost item.
3. Fill in the description, unit of measure, estimated cost, and proposed cost from the contractor.
4. Link each item to the appropriate budget codes and contracts for proper cost allocation.

This detailed approach ensures that all aspects of the change are properly documented and categorized within the system.

Managing Cost and Revenue Details

Once you've established the basic PCO structure, the next step involves managing markups and revenue allocations. These elements cover overhead, profit, insurance, and bond costs associated with the change.

Procore allows you to set default markups from record settings, such as overhead at 10%, profit at 5%, plus increments for insurance and bonding. When the "Include Revenue" checkbox is selected in a PCO item, fields for Markup %, Markup Amount, and Revenue Amount become editable. For example, if the final applied budget amount is $10,000, overhead might be calculated as 10% ($1,000), with profit as 5% of the subtotal ($550), followed by additional insurance and bond costs.

Review these values carefully to ensure accuracy. The system allows manual adjustment of markup values if necessary, automatically recalculating final amounts in the revenue fields. This flexibility accommodates project-specific requirements while maintaining calculation integrity throughout the change order process.

Assigning Responsibilities and Documentation

Proper communication and tracking are essential components of the change order process. Procore provides several features to facilitate these aspects:

Assignments and Courtesy Copies:

• Add responsible persons with due dates for review or cost confirmation
• Include team members who should stay informed about progress

Documentation Management:

• Attach reference documents to provide context and supporting evidence
• Add comments to clarify specific aspects or requirements of the change

Beyond cost data, schedule information plays a crucial role in change management. Enter the number of additional days required to complete the modified work in the "Requested Days" field. Once reviewed, update the "Approved Days" field with the number of days that have been approved for the change. This information affects the overall project schedule and appears when the PCO is linked to related documents.

Linking and Finalizing PCCOs

After creating and populating the PCO with all necessary information, you may need to link it to additional records for comprehensive change management. Navigate to the "Links" panel on the PCO record to attach corresponding Change Order Requests (CORs), allowing you to group several PCOs and manage them collectively.

The approval process requires thorough review of all data. Ensure the PCO has been marked as "Approved for Budget" in the Information panel to finalize the applied amounts. If your process is configured for multiple tiers, approved PCOs may be rolled up into a PCCO later in the period. Many organizations incorporate electronic signature tools like DocuSign® for collecting signatures on the final PCCO.

For projects requiring electronic signatures, Procore generates a PDF version of the change order that includes all required fields. If your account has the Procore + DocuSign® integration enabled, this PDF is automatically added to the DocuSign envelope with signature boxes for each role. After verification of signature locations and any additional standard fields, send the envelope to initiate the signing process. Once signing is complete, Procore updates the PCCO's status and reflects these details in project financial reports.

Best Practices for PCO Management

Managing PCCOs in Procore requires attention to detail and adherence to established workflows. Following these best practices will help you avoid common pitfalls:

Quality Control Measures:

• Double-check all field entries before approval
• Review markup calculations for accuracy
• Monitor linked records to prevent field locking issues
• Verify user permissions for necessary actions

Clear communication between project managers, estimators, and the finance team helps prevent delays and misunderstandings. Use assignment and courtesy copy features to keep all relevant team members informed throughout the process. When attaching files such as revised drawings or contractor quotes, verify they represent the latest versions and provide necessary context for reviewers.

Procore offers several efficiency features that can streamline the change order process. The "Push to Proposed" or "Push to Approved" functions copy data from one column to another in the PCO item grid, useful when updating multiple items with revised estimates. For managing numerous change orders simultaneously, consider using the Excel export/import functionality, being careful to verify data integrity before importing to avoid errors.

Advanced Configuration Considerations

Your company's specific workflow may differ from the standard process described above. Several factors can influence how PCCOs are created and managed within your Procore environment.

Configuration settings play a significant role in determining the change order workflow. Depending on whether you're using a one-tier or multi-tier change order configuration, the sequence might include additional approvals or grouping steps. For companies integrating Procore with an ERP system like Sage 300 CRE®, additional fields and data transfer steps might be required. Verify that cost codes and budget allocations are correctly synchronized to prevent double entries or data discrepancies.

Many organizations customize the default fields in their PCO or PCCO templates to align with specific business requirements. If your company uses customized fields, follow internal guidelines for each data point to maintain consistency across projects. Additionally, be mindful of workflow statuses (such as Draft, Under Review, Out for Signature, Approved) to ensure all parties understand the current state of each change order.

Handling Special Change Order Types

Some change orders require special handling due to their nature or impact on the project. Backcharges and contingency adjustments present unique challenges in the change order process.

When using change orders to handle backcharges or contingency adjustments, remember that cost columns might not reflect work on the budget until final approval. Take special care when multiple change orders are grouped together to ensure accurate allocation and prevent double-counting. The audit trail automatically created by Procore for all changes and assignments provides critical documentation for billing, audits, or dispute resolution.

For changes involving multiple trades or complex scope modifications, consider breaking down the PCO into clearly defined line items with specific budget codes. This granular approach improves transparency and facilitates more accurate cost tracking. When dealing with time-sensitive changes, utilize the priority indicators and due date fields to highlight urgency and ensure timely review by all stakeholders.

Benefits of Structured Change Management

Implementing a structured change order process through Procore offers numerous advantages for construction project management. These benefits extend beyond simple documentation to impact overall project success.

Centralized documentation ensures all changes, estimates, approvals, and associated documents reside in one system, reducing miscommunication risks among project stakeholders. The detailed fields for various cost amounts help ensure every aspect of the change is accurately accounted for, leading to better financial control and clearer owner communications. Enhanced collaboration through assignments, courtesy copies, and electronic signatures speeds up the approval process and maintains accountability.

Perhaps most valuable is the real-time budget impact visibility. Once a PCO is approved for the budget, the changed amounts automatically apply to the project's financial reports, providing immediate insight into how changes affect the overall budget. This transparency helps project teams make informed decisions about resource allocation and schedule adjustments in response to approved changes.

Streamline Your Change Order Process Today

Managing change orders effectively can make the difference between a profitable project and one that suffers from scope creep and budget overruns. By implementing the structured approach outlined in this guide, your team can transform change management from a reactive scramble into a proactive, controlled process.

Take time to review your current change order workflow and identify opportunities for improvement. Consider training your team on Procore's PCO and PCCO features to ensure everyone understands the process and their responsibilities within it. Establish clear guidelines for documentation requirements, approval thresholds, and communication protocols to maintain consistency across all project changes.

Remember that effective change management isn't just about documentation—it's about maintaining project control and client relationships. A well-managed change order process demonstrates professionalism and attention to detail, building trust with owners and trade partners. By mastering the creation of PCCOs from change events in Procore, you'll not only improve your project's financial performance but also enhance your reputation for project management excellence.