CPM Toolbox Training Manualcpmtoolbox.com/static/docs/training/CH_8_ChangeOrder.pdfGap Inc. CPM Toolbox Training Manual 8 Change Orders Introduction The Change Order module is designed

Gap Inc. CPM Toolbox Training Manual

8 Change Orders

Introduction The Change Order module is designed to allow general contractors to submit a scope of work that needs to be added to or deleted from the original scope of work for a construction project. Within the CPM Toolbox, this process occurs in two separate parts. In part 1, a general contractor must submit a “Not to Exceed” amount (NTE) for the scope of work. If the NTE is approved, then part 2 requires backup/supporting documentation and a breakdown of costs to be provided and approved.

Construction Phase: Change Orders are typically submitted after the construction start date and before the substantial completion date with a goal to avoid schedule impact whenever possible.

Roles & Responsibilities:

Used by: General Contractors (GC), Construction Project Mangers (CPM), Gap Inc. Sr. Project Manager (SPM), Corporate Shared Service Center (CSSC), Construction Project Coordinator (PC).

Instructions:

Below is the process workflow of the Change Order process within the CPM Toolbox. Each step in the process has an identified process owner. To view step by step instructions for the actions required from your role, please refer to the corresponding section of the instructions. Actionable items have been marked in blue.

Section

Process Owner

A. Part 1 - Submitting an NTE General Contractor B. Review and Approve or Reject Change Order CPM – Skipped if no CPM on project C. Final Review and Approve or Reject SPM D. Part 2 – Submitting Cost Details/Backup documentation General Contractor E. Review and Approve or Reject Change Order CPM – Skipped if no CPM on project F. Final Review and Approve or Reject SPM G. Purchase Order Initiation CSSC – Occurs Outside of toolbox


8 Change Orders

Section A. General Contractor –Submitting an change order – Part 1 A1. From the project detail page, click on the Change Orders tab. (See Section A6 for Permit Change Orders.)

A2. From the Change Order screen, select the Create New Change Order link. A list of submitted COs for the project and their status can also be viewed in chronological order from this page.

1


8 Change Orders

A3. In Part 1 of the CO submission, the NTE (Not to Exceed) amount is submitted. The NTE is a lump sum value or estimate of the CO. The detailed cost will be provided after the NTE is approved.

Note: Be sure to include tax and overhead & profit into your NTE amount.

A4. Enter the following detail and select Submit the NTE Amount.

x Description of Work x Drawing Reference x Schedule Impact Yes/No – A CO should ideally not impact the schedule x Anticipated Impact (In days)

2


8 Change Orders

A5. The data field to enter in the dollar amount will appear. Fill in the dollar amount in which the CO will not exceed and select Submit Change Order.

A6. Submitting Permit Change Orders

For building permits, a new change order will need to be submitted by the GC. Follow the instructions in Sections A1-A5 to submit the NTE amount. Then follow instructions in Sections D4-D5 to attach the backup documentation. The permit NTE amount will not include tax and should match the costs detailed within the backup documentation.

Note: For permit change orders, only the NTE and backup documentation will be submitted. The cost details do not need to be submitted, unless specified by the SPM. Specify in the “Description of Work’ field that the change order is for a permit. See below for example

3


8 Change Orders

Section B. CPM – Initial Review and Approve/Reject/Cancel – Part 1 (Skip this section if no CPM on Project)

Note: The SLA for the initial review of a Change Order is 48 hours.

B1. From the Change Order page, select the CO # with a status reading “Awaiting initial review”.

B2. If approving the CO, review the scope of work and the associated NTE. Select Approve. Note: The notes section is not to be used as a dialog or communication platform from the CPM/SPM to the GC. For example; “Missing backup documentation, please provide”. Notes are to be used for providing context to the necessity of the CO.

The following message will appear: “Your approval has been recorded and notification is being sent to the Senior PM for review.”

B3. If rejecting or cancelling the CO, a reason code must be chosen. Selecting “Reject”, indicates that the GC can resubmit the same CO, editing information based the on the rejection reason code. Selecting “Cancel”, indicates that the CO will not be approved at any time. The only way a CO can be resubmitted after cancelling is to create a new CO.

4


8 Change Orders

Section C. SPM – Initial Review and Approve/Reject/Cancel – Part 1

Note: The SLA for the initial review of a Change Order is 48 hours.

C1. From the Change Order page, select the CO # with a status reading “Initial CPM approval, awaiting Sr. PM approval”.

C2. If approving the CO, review the scope of work and the associated NTE. Select Approve. Provide context as to why the CO is necessary in the notes section.

The following message will appear after selecting Approve: “Your approval has been recorded and notification is being sent to the GC.”

C3. If rejecting or cancelling the CO, a reason code must be chosen. Selecting “Reject”, indicates that the GC can resubmit the same CO, editing information based the on the rejection reason code. Selecting “Cancel”, indicates that the CO will not be approved at any time. The only way a CO can be resubmitted after cancelling is to create a new CO.

5


8 Change Orders

Section D. General Contractor – Submitting a Change Order – Part 2

Note: If your CO is approved, please follow the steps below for Part 2 of the submittal process. If your CO is rejected, review the rejection reason code and provide the necessary changes or information to resubmit that same CO. If your CO is cancelled, this completely ends the submittal process for this CO. A cancelled CO can no longer be edited or resubmitted.

See Section D7 for examples of acceptable vs. unacceptable cost details and backup documentation.

D1. From the Change Order page, select the CO # with a status reading “Initial Sr. PM approval, awaiting GC Cost Detail”

D2. In part 2 of the CO submittal process, the cost details as well as supporting/backup documentation, such as an invoice are submitted. Select Submit/Update Cost Details.

Note: If the uploaded backup documentation does not clearly outline the cost breakdown of the CO scope of work, the GC must provide the cost detail provided from their sub contractors in the cost details section of the CPM Toolbox.

Example of unacceptable cost details: “1 hour labor = $5,000”

6


8 Change Orders

D3. Enter the following detail for both the breakdown of labor and breakdown of materials:

Note: Labor rates may not exceed rate indicated in the bid. See Section D7 for acceptable vs. unacceptable examples. Complete the following information:

x CSI Division – choose from the dropdown list – (ex: metals, concrete, etc…) x CSI Subdivisions – dropdown list will correlate to division selected x Description x Hours and Rate/Quantity and Cost x Note: Sales tax must be filled in by GC if applicable. Tax is not auto populated.

D4. To upload your backup documentation, select the “Upload an attachment” button. Documentation must back up hours/rates and match information provided within the cost details section. If documentation is not clearly broken down by rates/material, details entered in the description field must be specific so pricing is clear to all stakeholders.

Additional lines for breakdown of labor or materials can be added by clicking on the green plus symbol.

7


8 Change Orders

D5. Browse for your document and select upload file.

Note: CO documentation must be uploaded by the GC only. CPMs and SPMs are not to upload CO documentation.

D6. When all relevant documentation has been submitted and all pricing information has been provided, select “submit change order”.

8


8 Change Orders

D7. Submitting Cost Details – Acceptable vs. Unacceptable Examples

Acceptable Cost Details

Acceptable Backup Documentation

All materials are reflected Cost and quantity

are defined and match backup documentation

Applicable tax is input correctly

Backup documentation clearly defines cost of labor rates, hours, and materials.

Details of change order match the information entered in the cost details.

Labor rates are specified.

9


8 Change Orders

Unacceptable Cost Details

Unacceptable Backup Documentation

Labor rates are not broken down

Materials are not specified and description is too generic

Rates are not broken down by cost per hour

Materials are not clearly defined

Quantity and cost of materials are not broken out

10


8 Change Orders

Section E. CPM – Final Review and Approve/Reject/Cancel – Part 2 (Skip this section if no CPM on Project)

Note: The SLA for the final review of a Change Order is 48 hours .In Part 2 of the CO review process, the CPM must review the cost detail section for the submitted CO. In order to approve, the GC’s uploaded backup documentation must clearly outline the breakdown of costs. If the documentation is not clearly broken out by hours/materials, the data input into the cost details section must provide clarification to their documentation.

E1. Notifications will be sent if there is a change order requiring approval. From the Change Order module, select the CO # with a status reading “Awaiting final CPM approval”.

E2. Review the cost detail information as well as the documentation, located in the attachments window.

11


8 Change Orders

E3. If approving, select a reason code from the dropdown box, then select approve.

E4. If rejecting, select a reason code from the drop down box, then select reject. The following reason codes can be select as a CO rejection.

x No longer valid x Incorrect scope of work x Cost negotiation x Incorrect cost information x Duplicate change order

12


8 Change Orders

Section F. SPM – Final Review and Approve/Reject/Cancel – Part 2

Note: Follow the same CPM review guidelines noted in section E.

F1. From the Change Order page, select the CO # with a status reading “Final CPM approval, awaiting Sr. PM approval”.

F2. If approving, select a reason code from the dropdown box, then select approve.

F3. If rejecting, select a reason code from the drop down box, then select reject. The following reason codes can be select as a CO rejection.

x No longer valid x Incorrect scope of work x Cost negotiation x Incorrect cost information x Duplicate change order

13

Documents

CPM Toolbox Training Manualcpmtoolbox.com/static/docs/training/CH_8_ChangeOrder.pdfGap Inc. CPM Toolbox Training Manual 8 Change Orders Introduction The Change Order module is designed