Evaluate Contract Change Order

Explanation

Use this activity to evaluate the information entered on the contract change order (CCO). This step is an important part of analyzing the total impact of the change and how to further proceed with the change process. All the aspects effected by the change should be considered; the expected cost/revenue, risk assessment, resource planning, time schedules etc.

If the change order requires external approval, this information can be used as the basis for replying or creating a proposal to be submitted to the external party. The requested values can be documented on the CCO by updating the Requested Cost or Requested Revenue in Impact/Financial - This Order  tab.

Prerequisites

• A CCO with relevant information entered related to the change should exist.
• To view the impact on cost and revenue from related sub orders, the information should be defined in the Related Sub Orders tab.  

System Effects

N/A

Window

Contract Change Order
Contract Change Orders

Related Window Descriptions

Contract Change Order
Contract Change Orders
Contract Change Order/General
Contract Change Order/Forecast
Contract Change Order/Impact
Contract Change Order/Related Sub Orders
Contract Change Order/Object Connections
Contract Change Order/Approvals
Contract Change Order/Contacts
Contract Change Order/Tasks
Contract Change Order/History

Procedure

1. Open the Contract Change Order window and and query for the CCO you wish to evaluate. All of the following steps are optional and a guide to help you evaluate the CCO.
2. Review relevant data on the General tab.
3. Click the Related Sub Orders tab to see if there are any connected change orders.
4. Click the Impact/Financial - This Order tab to view the cost or revenue for the change order. You can:
   1. view records with cost or revenue per cost/revenue element for this order.
   2. evaluate the total agreed/requested/expected cost or revenue for this order in the summery fields.
   3. evaluate the total agreed/requested/expected cost or revenue for the related sub orders in the summery fields.
   4. evaluate the calculated total Profit and Margin for the change in the summery fields. (Note that these fields are only calculated if there are cost or revenue values for both this change order and related sub orders.)
5. Click the Impact/Financial - Total Sub Orders tab to view more detailed information about the cost or revenue from the related sub orders.
6. Click the Impact/Risk tab review any information describing the impact this change order will have on the risk.
7. Click the Impact/Schedule tab describing the impact this change order will have on the schedule, e.g. if and how much the project will be delayed if this change order is implemented.
8. Click the Impact/Scope tab to review any information describing the impact this change order will have on the scope.
9. Click the Impact/Other tab to review any information describing the impact this change order will have on things like resources, other changes, other projects etc.
10. When all information has been reviewed, and if the change order require external approval, you can update the optional Requested Cost or Requested Revenue fields and prepare the documents that should be submitted to the external party.