Create change orders for Unit Price contracts

Change orders (CO) can be documented for unit price contracts. However, specific steps must be taken to ensure that the unit price financial dashboard is accurate.

Job cost codes for unit price contracts

Before you begin

• For every unit price item, there must be a corresponding job cost code. For example, if the prime contract references ten original unit price items, there must be ten matching job cost codes.

• When a new unit price item is introduced through a change order, a job cost code must be added to the project and referenced in the CO Items section of the change order. This new job cost code will not appear in the original prime contract.

• Quantities and units in the job cost codes must reflect the revised values. For example: Job Cost Code Quantity = Prime Contract Unit Price Quantity + Change Order(s) Unit Price Quantity

Update quantities for original unit price items

If the CO affects original unit price items, then the quantity in the job cost codes must be updated to reflect the revised value.

1. Go to Projects and select the appropriate project in the Quick Select section.
2. On the Project Home page, select Job Cost Codes in the Client Contract Admin section.
3. For each cost code that will be impacted by the change order, do the following:
   1. Select the cost code from the list.
   2. Update the value in the Quantity field to match the quantity in the revised project estimate.
4. Select Save & Close.

Create job cost codes for new unit price items

Each job cost code must correspond to a single unit price item, whether referenced in the prime contract or in a change order.

1. Go to Projects and select the appropriate project in the Quick Select section.
2. On the Project Home page, select Job Cost Codes in the Client Contract Admin section.
3. Select Actions > Add Manually.
4. Optionally, update the Order Number if needed.
5. Enter the Code, Description, Quantity, and Units for the new unit price item.

   Ensure that the quantity matches the estimated project or change order quantity.

6. Select Save & Close.

Create the change order

1. Go to Projects and select the appropriate project in the Quick Select section.
2. On the Project Home page, select COs in the Client Contract Admin section.
3. Select Actions > Add Manually.
4. Optionally, update the CO Order Number and CO #.

5. Sage Construction Management automatically generates the CO order and CO numbers, but they can be modified.

6. Select an option from the Initiated By dropdown and enter a Subject.
7. If the change order is approved, update the Status and Status Date fields.
8. Enter the Contact and Address Type for both the client and prime contractor.
9. Enter the Scope of work.

10. Complete any additional optional fields as needed.

11. Select Next.
12. Optionally, add any linked files.
13. Select Finish.

Import items

To include items affected by the change order, import either the original unit price items or new ones.

Import unit price items

1. Go to Projects and select the appropriate project in the Quick Select section.
2. On the Project Home page, select COs in the Client Contract Admin section.
3. On the COs page, select a CO number from the list.

4. In the CO Items section, do the following as needed:

   • To import original unit price items:

     1. Select Add / Import items > Import Prime Contract Unit Price Items.

     2. Select from the list only the items affected by the CO.

     3. Select Add & Close.

        The description, unit of measure, unit price, and job cost code will be imported. The quantity will initially be set to one.

     4. Select Edit, enter the additional quantity needed for the original items, and select Save.

        The Prime Contract Unit Price table of the prime contract has the original quantity.

        Do not modify the Unit Price rate for the original items to avoid discrepancies between the prime contract and the change orders.

   • To import new items, select Add / Import items and select the appropriate option for the type of item you're working with.

     For example, select Import Equipment Items. Learn more about importing items into change orders.

Import job cost codes for the new unit price items

1. Go to Projects and select the appropriate project in the Quick Select section.
2. On the Project Home page, select COs in the Client Contract Admin section.
3. On the COs page, select a CO number from the list.
4. In the CO Items section, select Add / Import items > Job Cost Codes.
5. Import the cost codes that were created for the new unit price items.
6. Select Add & Close.
7. Select Edit, update the Quantity and Unit Price for each imported job cost code, and select Save.

   The quantity and units must be equal to the estimated project quantity.

Update the cost budgets for the original and new unit price items

Changes can affect cost budgets for both original and new unit price items, as additional materials, labor, and equipment may be required to complete the revised scope of work.

1. Go to Projects and select the appropriate project in the Quick Select section.
2. On the Project Home page, select COs in the Client Contract Admin section.
3. On the COs page, select a CO number from the list.
4. In the CO Items section, select the item description.
5. In the CO Line Item Cost Budgets section, enter the appropriate unit cost rates for material, labor, equipment, subcontractor, and other.
6. Select Save & Close.

Set the labor and equipment hour budget revisions

If any portion of the change order (CO) work scope will be self-performed, document revisions to labor and equipment hour budgets to account for the additional time required to complete this work. Approved CO hour budgets will appear in timecard dashboards and be compared against actual timecards.

1. Go to Projects and select the appropriate project in the Quick Select section.
2. On the Project Home page, select COs in the Client Contract Admin section.
3. On the COs page, select a CO number from the list.
4. In the Current CO Cost and Hour Budget Breakdown By Resource section, select one of the following:
   • To edit the labor hours, select the number of hours in the Labor row.
   • To edit the equipment run-time, idle time, and double-time hours, select the number of hours in the Equipment row.
5. To add job cost codes, select Import Referenced JCC.
6. Select Edit, enter the total hours, and select Save.

   The hours entered will be added to the original values set in the prime contract.