How to Create a Prime Contract Change Order in Procore

Understanding Prime Contract Change Orders

A prime contract change order in Procore documents and manages modifications to a prime contract. These modifications might alter the original contract amount or adjust the project schedule. The process ensures that every change is documented, approved, and linked financially with all change events and relevant budget updates.

Prime contract change orders serve multiple essential functions in construction project management. They adjust the original contract budget and billing amounts to reflect new work scopes or modifications. They also track schedule impacts, such as additional days needed for project completion, which helps maintain realistic timelines.

Documentation is another crucial aspect of PCCOs. They provide detailed change descriptions and record approval dates, creating an audit trail for all project stakeholders. This documentation becomes invaluable during disputes or when reviewing project history.

Modern PCCOs in Procore offer integration capabilities that streamline workflows. They can connect with digital signature solutions like DocuSign for convenient approvals. They also synchronize with Enterprise Resource Planning (ERP) systems when properly integrated, ensuring financial data remains consistent across platforms.

Essential Permissions and Prerequisites

Before creating a prime contract change order, you need to ensure you have the proper access rights and settings configured in Procore. Without these prerequisites, you may encounter roadblocks or errors in the process.

You must have 'Admin' level permissions on the project's Prime Contracts tool. This permission level is necessary because change orders involve editing financial data and contractual details that affect the entire project. Your project administrator can verify and adjust your permissions if needed.

If your organization uses the Procore + DocuSign integration, the change order screen will automatically display the DocuSign signature collection option. This feature streamlines the approval process but can be deselected if signatures aren't required for a particular change order. The integration eliminates the need for printing, signing, and scanning documents.

Not all ERP integrations support change order syncing, so review your specific ERP's capabilities before proceeding. Some systems have limitations regarding what data can be transferred or may require specific formatting. Consulting Procore's ERP integration documentation will provide detailed insights for your particular setup.

Tool configuration also matters significantly. If the Change Events tool is enabled on your project, you'll need to follow a different workflow than described here—typically creating a change event before converting it to a prime contract change order. Confirm your project's configuration before starting the process to avoid confusion.

Step-by-Step PCCO Creation Process

Creating a prime contract change order requires navigating through several screens and inputting specific information. Following a systematic approach ensures you don't miss any critical details.

Begin by accessing the Prime Contracts tool within your Procore project. This tool centralizes all contract management functions and serves as your starting point. Once there, locate and select the specific prime contract that requires a change order by clicking on its number link to access the detailed view.

After opening the contract details, initiate the change order creation by clicking the "Create Prime Contract CO" button. This action opens a form where you'll enter all necessary information about the change order. The form contains multiple sections that capture different aspects of the change.

The basic fields require immediate attention. If DocuSign is enabled, you'll see a checkbox indicating the change order will use digital signatures—uncheck this if signatures aren't needed. Procore automatically assigns a sequential number (001, 002, etc.), but you can enter a custom number that aligns with your company's numbering scheme if preferred.

Completing Essential PCCO Details

The creation date and time automatically populate when you start a new change order. This timestamp creates an audit trail and cannot be modified, ensuring accuracy in tracking when changes were initiated.

For change orders that undergo multiple revisions, you can add a revision number to track different versions. This feature helps maintain a clear history of how the change order evolved before final approval. Procore also automatically identifies you as the creator in the "Created By" field.

Give your change order a descriptive title that concisely explains the change, such as "Additional Sitework Adjustments" or "Electrical Scope Expansion." A clear title helps all stakeholders quickly understand the nature of the modification without diving into details. By default, the change order starts in "Draft" status, which you can later update to "Out for Signature," "Approved," or "Executed" as it progresses through your workflow.

Privacy settings allow you to control who can view the change order. If you check the "Private" box, only other Admin-level users will be able to access it. This restriction is useful for sensitive changes that aren't ready for broader visibility. You should also select appropriate due dates and invoiced dates to establish clear timelines for review and payment processing.

Designating Reviewers and Providing Details

Selecting the right reviewer is crucial for efficient change order processing. Choose a Procore user from your organization who will be responsible for approving or rejecting the change order.

The designated reviewer must have at least 'Standard' level permissions on the contract or funding tool to appear in the selection list. This requirement ensures they have sufficient access to evaluate the change properly. Selecting someone familiar with the project context and with authority to make decisions will speed up the approval process.

The description field requires thorough attention to detail. Use this space to explain what work is being changed and why the modification is necessary. Include information about whether the change resulted from a client request, design development, or allowance adjustments. The more comprehensive your description, the less likely questions will arise later.

Schedule impacts should be clearly documented if applicable. Enter the estimated number of additional days the change will add to the project timeline. If the change will modify the substantial completion date of the contract, select the new date using the date picker. This information helps all parties understand how the change affects project milestones.

Additional Configuration Options

Depending on your organization's Procore setup, you may see various additional options that enhance change order management. These options provide flexibility to match your specific workflow needs.

The "Approved/Executed" checkbox marks the change order as fully executed once all approvals are received. This status change is important for reporting and financial tracking purposes. It signals that the change order has moved from a proposed state to an active part of the contract.

Your change order system might be configured as a 1-tier, 2-tier, or 3-tier process, affecting how you group related changes. In multi-tier systems, you can group multiple potential change orders (PCOs) or change order requests (CORs) before finalizing the prime contract change order. This grouping capability helps organize related modifications logically.

When completing the change order, you have several options for proceeding:

1. Click "Create" to simply save the change order without further action.
2. Select "Create & Email" to immediately notify designated reviewers.
3. Choose "Complete with DocuSign" to initiate the signature collection process if you use the Procore + DocuSign integration.

Each option serves different workflow needs, from simple documentation to active approval solicitation.

Custom Numbering and DocuSign Integration

Procore offers flexibility in how you identify and process change orders. This adaptability helps align the system with your organization's established practices and preferences.

When creating a prime contract change order, you can either accept Procore's default incremental numbering system or implement your own custom scheme. Many companies prefer custom numbering that incorporates project codes, department identifiers, or date references. Simply replace the auto-generated number with your preferred alphanumeric code during creation.

Custom numbering schemes provide consistency across project documents and make it easier to reference specific changes in meetings or reports. They can also help maintain alignment with your accounting system's requirements. Once established, your custom sequence will maintain consistency across all project documentation.

The DocuSign integration significantly streamlines the approval process by eliminating paper-based signatures. When enabled, a checkmark appears on the change order creation form indicating electronic signatures will be used. Clicking "Complete with DocuSign" prompts you to log in if necessary, then creates a DocuSign envelope containing the change order document.

ERP Integration Considerations

Many construction companies integrate Procore with their ERP systems to maintain financial data consistency. This integration affects how change orders function and what information transfers between systems.

Not all ERP integrations support change order synchronization. Before creating PCCOs, verify whether your specific ERP system (such as Sage 300 CRE, Acumatica, or others) supports this data transfer. Some systems may only sync certain fields or require particular formatting conventions to process the information correctly.

ERP systems often impose additional requirements on change orders. These might include character limits in description fields, special formatting rules for cost codes, or specific approval workflows. Understanding these limitations before creating change orders prevents synchronization errors and rework.

The approval workflow may extend beyond Procore when using ERP integration. Even after a change order is approved in Procore, an accounting approver in your ERP system might need to accept the information before it's fully processed. Following your organization's specific procedures ensures proper reconciliation between Procore and your ERP system.

Multi-Tier vs. Single-Tier Change Orders

Procore offers different configuration options for change order management. Understanding the differences between these approaches helps you select the most appropriate system for your projects.

The single-tier system provides simplicity and ease of use, making it ideal for smaller projects or straightforward workflows. In this configuration, change events convert directly into prime contract change orders without intermediate grouping. This direct approach reduces administrative overhead and speeds up the process.

A single-tier system works well when:

• Projects have limited complexity or fewer stakeholders
• Quick turnaround on change approvals is essential
• The approval chain is relatively short

In contrast, a two-tier system offers increased granularity by allowing you to group multiple potential change orders before creating the final PCCO. This approach provides better organization for complex projects with numerous changes. It also facilitates more thorough review processes when multiple parties need to evaluate modifications.

Troubleshooting Common PCCO Issues

Even with Procore's robust tools, challenges can arise when creating or managing change orders. Knowing how to address these issues saves time and prevents frustration.

Out-of-sequence change orders sometimes cause display problems in reports or invoices. If you enter CO 5 before CO 1, the invoice PDF export might list them in creation order rather than numerically. To minimize this issue, consider keeping earlier change orders in "Draft" status until you create later ones. This approach helps maintain proper numerical sequencing in reports.

For export purposes, you can generate a report or CSV and manually sort the change order numbers using Excel if necessary. The sorting issue doesn't lock previous change orders in "Draft" once the latest one is invoiced—it only affects how they display in certain contexts.

DocuSign integration occasionally experiences delays or errors during the signature process. Before initiating signing, verify both your Procore and DocuSign login statuses are active and current. Ensure all signing parties have connected DocuSign accounts and understand they'll receive signature requests via email.

Best Practices for PCCO Management

Effective change order management requires attention to detail and consistent processes. Implementing these best practices enhances accuracy and efficiency.

Always confirm you have appropriate Admin permissions before attempting to create or modify change orders. This simple check prevents frustration and saves time if you need to request access from colleagues. Permission issues are among the most common roadblocks in change order management.

Clear communication forms the foundation of successful change order processing. Use descriptive titles and detailed explanations that leave no room for misinterpretation. When writing descriptions, consider whether someone unfamiliar with the situation would understand the change and its rationale based solely on your text.

A consistent numbering system, whether using Procore's automatic sequence or a custom scheme, simplifies tracking changes across multiple contracts. Whatever system you choose, apply it uniformly to avoid confusion. Consistency makes it easier to reference specific changes in meetings, reports, and communications.

Regular monitoring and follow-up prevent change orders from stalling in the approval process. Check the status of pending change orders frequently, especially those marked as "Out for Signature" or "Pending – In Review." Gentle reminders to reviewers can keep the process moving forward and prevent delays in project timelines.

Leveraging Reporting for Change Management

Procore's reporting capabilities provide valuable insights into change order status and financial impacts. These tools help maintain oversight of your project's evolving scope and budget.

Use Procore's reporting features to generate comprehensive views of all change orders in your project. Custom reports can confirm that change order values and sequence numbers align with your financial tracking requirements. Regular reporting helps identify patterns in changes that might indicate underlying issues requiring attention.

The financial impact of change orders becomes clearer through proper reporting. Track how changes affect your original contract value, contingency funds, and projected final costs. This visibility helps project managers make informed decisions about future changes and budget allocations.

Reports also facilitate communication with stakeholders who need to understand how changes impact the project without diving into technical details. Executive summaries showing change order totals, reasons, and schedule impacts provide valuable context for owners and senior management. These reports can be customized to highlight the most relevant information for different audiences.

Creating report templates specifically for change order tracking saves time and ensures consistency. Develop standard formats that capture key metrics like approval status, value changes, and schedule impacts. These templates can be reused across projects, providing uniform reporting throughout your organization.

Real-World Applications of PCCOs

Prime contract change orders address various real-world scenarios in construction projects. Understanding these applications illustrates their practical value in project management.

When unforeseen site conditions require additional work, creating a prime contract change order allows you to adjust the budget appropriately. The PCCO documents the added cost, updates the construction schedule to reflect additional days needed, and creates a digital approval trail ensuring both client and contractor agreement. This documentation prevents disputes about what was agreed upon and when.

Large projects often involve multiple change events that benefit from logical grouping. A two-tier system allows individual change event items to be grouped into a consolidated prime contract change order. This approach simplifies the approval process for owners, who review one comprehensive change rather than multiple smaller ones. It also provides a clearer financial impact report, facilitating billing and reconciliation.

Companies using ERP systems benefit from real-time financial updates through change order synchronization. Creating a change order in Procore ensures cost modifications appear in connected systems immediately. This integration minimizes manual entry errors and maintains a single source of truth for financial reporting, preventing discrepancies between project management and accounting systems.

Streamline Your Change Order Process Today

Mastering Procore's prime contract change order functionality transforms how you handle project modifications. The systematic approach outlined in this guide provides a foundation for efficient change management that reduces errors and improves financial tracking.

Start by reviewing your current permissions and project settings to ensure they align with the change order process. Check whether you have Admin access to the Prime Contracts tool and understand your project's configuration regarding Change Events and ERP integrations. This preparation prevents frustration when you begin creating change orders.

Implement consistent practices for change order creation, including descriptive titles, detailed explanations, and appropriate documentation. Attach relevant files like drawings or cost breakdowns to support the change justification. These supporting materials create a comprehensive record that proves invaluable during reviews or disputes.

Consider which change order tier system best suits your project's complexity and stakeholder requirements. Smaller projects might benefit from the simplicity of a single-tier approach, while larger ones may require the organizational benefits of a multi-tier system. Aligning your process with project needs improves efficiency and stakeholder satisfaction.

The ability to effectively manage change orders in Procore represents a significant advantage in construction project management. By following the detailed steps and best practices outlined here, you'll maintain clearer documentation, ensure financial accuracy, and streamline workflows from initial change identification through final approval and invoicing. This comprehensive approach to change management contributes to more successful project outcomes and stronger client relationships.