advanced pj change management lab

Advanced PJ Change Management Lab ‐ 1

Advanced PJ Change Management Lab

Presented By:

Jennifer Douglas‐Ullmann Project Resources

Credits/Revision History

Original Author(s): Jeff Gillig

Revised Date: September, 2016

Major Revisions Include: o Version updates o Lecture/lab format

Tuesday, October 18 1:00pm – 4:15pm | Galleria I


Contents

BACKGROUND FOR ACTIVITIES ................................................................................................................. 3

SAMPLE CHANGE MANAGEMENT WORKFLOW ....................................................................................... 3

SETUP NEW CONTRACT AND JOB USING JOB CENTRAL ...................................................................... 4

FINISH SETUP OF PROJECT MANAGEMENT JOB ..................................................................................... 8

ENTER COMMITMENTS .....................................................................ERROR! BOOKMARK NOT DEFINED.

CREATE A BILLABLE CHANGE REQUESTS ............................................................................................ 12

SEND OUT REQUESTS FOR QUOTES (RFQS) TO 3 PLUMBING CONTRACTORS ............................... 15

ENTER VENDOR QUOTES IN CHANGE REQUESTS AND SELECT VENDORS ..................................... 18

FINISH AND SEND CHANGE REQUESTS .................................................................................................. 22

DETERMINE WHAT CHANGE REQUESTS HAVE OVERDUE RESPONSES ........................................... 28

SEND PENDING ESTIMATES TO JOB COST ............................................................................................. 29

REVIEW CHANGE REQUEST LOG ............................................................................................................. 31

CREATE A CHANGE ORDER ...................................................................................................................... 33

SEND THE CHANGE ORDER WITH A TRANSMITTAL .............................................................................. 40

PRACTICE RUNNING LOG AND CHANGE ORDER REPORTS ................................................................ 43

CREATE COMMITMENT CHANGE ORDERS ............................................................................................. 44

SEND COMMITMENT COS WITH A TRANSMITTAL .................................................................................. 50

VIEW THE SUBCONTRACTOR AND PURCHASE ORDER LOGS ............................................................ 53

EXTRA - RECORD AN INTERNAL ESTIMATE CHANGE ........................................................................... 54

EXTRA – CHANGE THE STATUS OF AN APPROVED CHANGE ORDER ............................................... 60

EXTRA – CUSTOMIZE THE CHANGE REQUEST ENTRY GRID ............................................................... 64

FOR EXTRA PRACTICE TRY THESE ACTIVITIES ..................................................................................... 68

NOTE This document is not intended to be a step by step instruction manual. It is written for an instructor to go through each example first and then provide time for students to work through each example. The activities in this document are based on the “Timberline Construction” sample database that is packaged with Sage 300 CRE.


Background for Activities You are a General Contractor who won the contract to build-out TUG’s new headquarters in Beaverton, OR. Sample Change Management Workflow The following diagram is provided to give a sample change management workflow in Sage 300 CRE for reference when using this document.

Sage 300 CRE Change Management Workflow

Chan

ge O

rder

Chan

ge R

eque

stJo

b Co

stCo

ntra

cts

Com

mitm

ent

CO

Approval ProcessCreate and Price Change Request

Create a Change Request

Request Vendor Quotes

Price a RequestSubmit to

Owner

Update Job Cost Estimate

(Pending or Approved)

Update Change Request Status

to “Denied”

Create Change Order

Issue a Commitment Change Order

Approved Change to Job

Estimate

Approved Change to Contract Amount

Change Request Status

Changed to “Approved”

Denied

Approved


Setup new Contract and Job using Job Central Job Central is a handy tool for setting up both a job and a contract at the same time. It is found on the Sage Desktop.

Setup a new job and contract using the following screen shots:

Auto‐formats


Click Finish to save the job. Open the Job Overview Inquiry to validate the setup (PJ-Inquiry-Job Overview). When prompted for file choices, select the following:


Finish Setup of Project Management Job Now that the JC job and contract are setup, the setup of the PJ job needs to be finalized. Follow these steps: Go to PJ – Setup – Jobs. Open Job 03-020 and fill out the fields in the remaining screen shots. Then save and exit. General Tab

** Note: use 2015 in the date fields


Scope / Documents

Change Management


Enter Commitments Commitments are used to track both subcontracts and purchase orders. Enter a commitment for each of the 3 trades on Job 03-020 and commit: ** Note: use 2015 in the date fields Plumbing Contract

Mechanical subcontract


** Note: use 2015 in the date fields Electrical subcontract

Entrance lighting purchase order

Open the Job Overview Inquiry to validate the setup (PJ-Inquiry-Job Overview).


Create billable change requests The TUG board concluded that they want to add a Jacuzzi and a disco ball to the party room. Prepare separate change requests for each to document the requested changes. In PJ, go to Contract Control–Change Requests. JACUZZI CHANGE REQUEST Create a new change request and enter the information in the following screen shots.

*** Be sure to use 5/31/15 as the change request date because it’s in the current month of the sample database***


** Use 2015 in the date fields NOTE: Sharon Hessong is a new contact and can be entered through quick-add functions. Leave the Price/Cost Estimate information blank for now. We’ll use this section in the next activities. DISCO BALL CHANGE REQUEST


***Be sure to use 5/31/15 as the change request date

Leave the Price/Cost Estimate information blank for now. We’ll use this section in the next activities.


Send out Requests for Quotes (RFQs) to 3 plumbing contractors In the change request you just created, use the functionality on the price/cost estimate tab to generate RFQs to 3 contractors for each change request. NOTE: This is an optional workflow. In PJ, go to Contract Control-Change Requests to open the change requests. Go to the Price/Cost Estimate tab. Use the following screen shots to fill out the appropriate information. ** Use 2015 in the date fields JACUZZI

NOTE: you’ll need to create new company contacts for Best Plumbing and Jacuzzi’s R Us. Save the Change Request.


** Use 2015 in the date fields DISCO BALL

Save the change request. View the Quotes Due From Vendors report. In PJ, go to Reports-Change Request-Quotes Due from Vendors (CR).

Close the report.


View the RFQs In PJ, go to Reports-Change Request-Request for Quote Form 1 (CR).


Enter Vendor Quotes in Change Requests and Select Vendors Record the vendor responses highlighted below in the vendor view of the change request. Obviously, in reality, vendor responses will come in at varying times. For the sake of simplicity, all responses will be entered at the same time. Enter Vendor Quotes In PJ, go to Contract Control-Change Requests to open the appropriate change request. ** Use 2015 in the date fields JACUZZI

NOTE: The price for the change request is only updated if the selected vendor has either a subcontract or purchase order (commitment) for the job. In the example above, Kingston Plumbing is the only vendor that currently has a commitment which is why the change request pricing only reflects the $11,000 entered for Kingston Plumbing.


DISCO BALL

NOTE: The price for the change request is only updated if the selected vendor has either a subcontract or purchase order (commitment) for the job. In the example above, both A-1 Electric and Adams Electric have a commitment which is why the change request pricing only reflects the $28,500 total amount entered for the two vendors.

Select Vendor To select the vendor awarded the subcontract, the lines for the other vendors need to be deleted. In PJ, go to Contract Control-Change Requests to open the appropriate change request JACUZZI

Delete all vendor bids except Kingston Plumbing.


DISCO BALL Delete all vendor bids except Adams Electric.


Since Adams Electric already has a purchase order for this job, the quote for the disco ball automatically defaulted to material. It needs to be changed to subcontract. Initial default of material.

Manually delete the material price and add to subcontract price.

Close out of change requests.


Finish and Send Change Requests Now that the vendors have been selected, the change requests need to be completed and submitted for consideration. Open each change request and complete the following information. JACUZZI Enter another line to install the breaker for the Jacuzzi.

Since the cost estimate is blank, use Prefill Estimate to copy the amounts on the price view to the cost estimate view.


Save and send the Jacuzzi change request (don’t click Send since this is training).


Print preview the Jacuzzi change request document.


DISCO BALL Enter another line to build a recess in the ceiling to hang and store the disco ball when retracted. This will be self-performed.

Since the cost estimate is blank, use Prefill Estimate to copy the amounts on the price view to the cost estimate view.


If the material cost amount prefills for the “furnish and install disco ball” line item, then delete the amount. Sage 300 defaults that amount because the selected vendor currently has a material purchase order on this project. Just like in the price view, this amount has to be adjusted manually.

Save and send the disco ball change request (don’t click send since this is training).


Print preview the disco ball change request document.


Determine what Change Requests have Overdue Responses Run the CR Log-Overdue (CR) report In PJ, go to Reports-Change Request-CR Log-Overdue (CR) and preview the report.


Send Pending Estimates to Job Cost After following up on the status of the change requests, you are given a verbal notice to proceed with the disco ball. However, before authorizing a change order, the Owner is still selecting the perfect disco ball. Update the change request and send pending estimates to Job Cost to account for the pending change in estimated cost. Open the disco ball change request and change the status to Verbal Okay.

Update the Notice to proceed or approval information.

** use a 2015 date


Send Pending Estimates to Job Cost.

Chose Pending.

** use 5-31-2015 since that is the current month in our sample data Use the Job Overview inquiry to verify the pending estimate changes.


Review Change Request Log Preview the Change Request Log – Full Detail and correct any errors. In PJ, go to Reports-CR log-Full Detail (CR) and preview the report.

Open the Jacuzzi change request and change the status to Submitted.


Rerun the Change Request Log – Full Detail report and verify that the Pending Contract Changes amount correctly reflects the price for both change requests.


Create a Change Order The owner approved the Jacuzzi and disco ball change requests as the first change order on this project. The price/cost estimate of the disco ball needs to be increased by $950 to reflect the owner selection. In PJ, go to Contract Control-Change Orders to create a new change order.

Enter “Jacuzzi and Hot Tub Installs” for the Description and click [Select Change Requests]. Select both the Jacuzzi and disco ball change request.


The 2 change requests are now linked to change order 1.

Quick-add a new Contract Item for the change order by entering “17” in the Contract Item field. Select Yes in the window below.


Verify the information in the Contract Item Quick Add window and click OK.

Add $950 to the subcontract price of the disco ball change request. Double-click on the Disco Ball change request to edit.


Change the Subcontract Price to $14,450.

Update the Vendor Price on the Vendor View as well because it will become the default value for the Commitment Change Order in an upcoming activity.


When you change the Vendor Price, flip back to the Price View to see what changes. Since the commitment to Adams Electric is a Purchase Order, any changes to the Vendor Price update the Material Price field and have to be manually adjusted (or deleted in this case).

This is the corrected change request.

Click Close when finished editing to return to the change order. NOTE: The changes made to the change request are not saved until the change order is saved.


Change the Date to 5-31-15 so the change order posts properly.

Click Save. Click Yes to update to send the cost estimates as Approved.


Click OK to change/send the cost estimates as approved. ** Change the date to 5-31-2015

Click Close to post the approved cost estimate and contract price. Open the Job Overview inquiry to review job balances.

Double-click on Approved Changes to view the approve change order.

Double-click on Total Estimate to view the estimate detail. Switch the view to Estimate Summary.


Send the Change Order with a Transmittal Reopen the change order and click Print and then Print Preview.

Close the print preview.


Click Transmittal.

Add “Tamara Bradshaw” to the To field and click Send.


Click Cancel because we can’t actual send this in a training class. Notice that both the transmittal and change order documents are included as attachments.

Click Save and Close on the transmittal. Click Close on the change order.


Practice Running Log and Change Order Reports Run the Transmittal Log (CR) by going to Reports-Transmittal-Transmittal Log (CR).

Run the Change Order Status Log, by going to Reports-Change Order-CO Status Log (CR).

Run the Changes by Contract Item report, by going to Reports-Change Order-Changes by Contract Item (CR).


Create Commitment Change Orders Create commitment change order for both Adams Electric and Kingston Plumbing based on the change request created in earlier activities. In PJ, go to Contract Control-Commitment COs. Click Select Change Requests to create a commitment change order based on a change request.

Select Adams Electric and click OK.


Fill out the remaining fields based on the screen shot below. Be sure to change the Date to 5-31-15.

NOTE: A new commitment item will be created for each commitment CO line with a blank Commitment Item. Assign a Commitment Item to the disco ball line by clicking on the Binocular button and select commitment item 1.

Click OK. Notice how Commitment Item is no longer blank and the Binocular has changed.


Remove the link to the commitment item by following the screen shot below.

Verify the Commitment Item is blank.

Click Save and OK on the Project Management pop up window.


Click New on the Commitment CO window to create a new commitment CO for Kingston Plumbing and click Select Change Requests.

Select the line Kingston Plumbing and click OK. Fill out remaining fields on the Kingston Plumbing commitment CO.


Click Select Commitment Items to add a new line to the commitment CO for overnight shipping that was not included in the vendors price on the change request.

Select commitment item 1 and click OK.

Verify a new line was added to the commitment CO and change the Description and Amount fields based on the screen shot below.

Click Save and Close to exit the commitment CO entry screen. Open the Job Overview inquiry to review the commitment status on the job.


Close the inquiry.


Send Commitment COs with a Transmittal Open each commitment CO to preview the commitment CO document and then create a new transmittal to send each commitment CO to the proper vendor. Open the commitment CO for commitment 03020-01 by going to Contract Control- Commitment COs. Click Find.

Enter the 03020-01 for the Commitment, select change order 1, and click OK.


Preview the commitment CO by clicking Print and Print Preview.


Close the print preview and click Transmittal.

Click Save and Close on the transmittal. Click Find on the commitment CO to open commitment 03020-P01. Create and save a transmittal for commitment 03020-P01. Close the commitment CO window.


View the Subcontractor and Purchase Order Logs SUBCONTRACTOR LOG In PJ, go to Reports-Subcontract-Subcontract Log.

PURCHASE ORDER LOG Go to Reports-Purchase Order-Purchase Order Log.


Extra - Record an Internal Estimate Change After beginning work on the project, it becomes evident that the luxury 6-person sauna was excluded from the cost estimate even though it was part of the original drawings. Record an internal change to reflect the change to the cost estimate and document the error. FIRST, ADD “ESTIMATING ERROR” TO THE LIST OF CHANGE REQUEST REASONS. In PJ, go to File-Company Settings-Custom Descriptions.


Enter “Estimating Error” and hit ENTER. Use the Move arrow buttons to position the new entry in the list and click [OK].

Click [OK] to exit Custom Descriptions. ENTER AN INTERNAL CHANGE REQUEST In PJ, go to Contract Control-Change Requests. If the Find Change Request window opens, click [New].


Enter the following information on the Change Request Tab:

Enter this on the Detail tab. If “Estimating Error” isn’t in the list of Reasons, close PJ and reopen it to refresh the list. Be sure to click Internal to flag this Change Request as internal.


On the Price/Cost Estimate tab, enter the following:

Notice that the $500 change order fee prefilled. Change views to Price and remove the fee.


Click [Next Action] and [Update Job Estimate] to update the job estimate for the missing costs.

** Use 5-31-2015 Click [Save] and [Close] to exit the Change Request window. REVIEW THE INTERNAL CHANGE REQUEST LOG In PJ, go to Reports-Change Request-CR Log-Internal (CR).


NOTE: Notice that the Estimate Summary section in the report includes the internal change for the sauna because it was sent to Job Cost as an Approved Cost Estimate.


Extra – Change the Status of an Approved Change Order After much debate, the TUG Board of Directors decided that the disco ball and Jacuzzi were too extravagant and decided not to move forward with the change. Remove Change Order 1 so that the contract price and cost estimates do not reflect the change, but retain the Change Order for the records. In PJ, go to Contract Control-Change Orders and select Change Order 1.

Change the Status to “Voided” and click [Save].

Click [OK] and then [Close].


Open the Job Overview Inquiry.

Notice that the Approved (Contract) Changes are now zero, but the Total Estimate remains unchanged. That’s because the status of both the disco ball and Jacuzzi are now “Not issued.” Since the cost estimates were already sent to Job Cost as “Approved,” they are not automatically removed from Job Cost. In order to do that, the status of each Change Request will need to be either “Denied” or “Voided.” Close the inquiry and go to Contract Control-Change Requests and open Change Request 1.


Change the Status to “Voided” and click [Save].

The following messages will pop up. Click [OK].


Change the status of Change Request 2 to “Voided” as well and then close out of Change Requests. Open the Job Overview inquiry and verify the Cost Estimate changed.


Extra – Customize the Change Request entry grid While the “out-of-the-box” Change Request workflow requires toggling between different views on the Price/Estimate tab to get to various grid fields, that doesn’t mean that it can’t be configured to have all the necessary fields on 1 view. In fact, the fields really have nothing to do with the views, which are there really just to provide a quick filter when using the grids. There are approximately 75 available fields that can be either shown or hidden in the views. Follow these instructions to setup a sample 1 view grid and rename the Price view. RENAME A VIEW Views can be renamed in Custom Descriptions. In PJ, go to File-Company Settings-Custom Descriptions. Change the name “price” to “default” for the Lump Sum view.

NOTE: The “Price” view is the default, so change the name to one that will be used most often. Click [OK] to close Custom Descriptions.


MODIFY THE DEFAULT VIEW Go to Contract Control-Change Requests and click [New] to open a new Change Request and then follow the screen-shot below.

The Hide/Show Cols window will appear. It lists all of the fields available to be displayed. Some of them will default with information even if not displayed. Both price and cost fields can be displayed on the same Change Request view. Match the fields selected in the windows below (follow them left to right):


Click [OK] when finished. Enter “10000” for Subcontract Cost and “15000” for Subcontractor Price and enter through to the next line.


Notice that both the Total cost estimate and Total price fields filled in from the same Change Request View showing that it’s possible to only use one View for data entry. NOTE: Changing the columns on one computer will not change them on others. In order to have the same entry columns on all computers, each computer will need to be updated separately!

For Extra Practice Try These Activities Go back to Change Request 1&2 and change their statuses back to “Not Issued,” then open Change Order 1, approve it, then relink the 2 Change Requests. Open an approved change request and change a Cost Estimate amount. Open an approved change request and change a Price amount. Select a report to preview from each report menu subgroup. Use job 03-001 or 03-002 if more job data is needed for the report.