POLICY: Change Order to Subcontractors and Purchase Orders

PURPOSE: To have a formal agreement to address revisions to the original Subcontracts and Purchase Orders.



1. Any potential change in price or a scope of work that affects a Subcontract or Purchase Order requires a Change Order. All potential change orders will be entered into Procore via the Change Event Tab. It is important to understand there does not have to be a change in price to require a Change Order. Significant changes to the scope or contract terms that do not involve money should be issued as “no cost” Change Orders.

2. To formalize a Subcontractor or Vendor potential change order, The Project Manager will generate a Potential Change Order (PCO) via the Commitment Tab in Procore. The request should include a copy of the quote and any other associated documents to substantiate the change.

3. Once The Project Manager has reviewed and approved the PCO, the PCO shall be integrated into a formal Commitment Change Order. The Commitment Change order may include multiple PCO’s or a single PCO at the Project Manager’s discretion. The Commitment Change Order shall be distributed to the Subcontractor/Vendor via Docusign for execution.

4. No Change Order will be entered into accounting until fully executed. If a deductive Change Order is being issued, the Project Manager is responsible for alerting accounting to ensure there is no over payment to the subcontractor or vendor.

5. If the Change Order involves work requested by the owner, no work is to be authorized or Change Order issued to a subcontractor or vendor until written authorization is received from the owner.

See Procore tutorial on creating Change Events and Commitment Change Orders below.

Creating a Change Event

Creating a Commitment Change Order


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