The Add-Ons tab in the PM Pending Change Orders form is used to create and modify add-on costs for items on a pending change order. Each change order item will initially default all add-ons set up for the project in PM Project Add-ons (accessed from PM Projects). Any add-ons entered for a project after a change order has been set up must be added for applicable change order items manually.

The add-on basis (Percent or Amount) determines whether the add-on will be a calculation or a fixed amount. If the add-on is a Percent type, the add-on amount is percentage of the Net Amount plus markups, plus any previous add-on amounts.

Add-on Phases/Cost Types

If add-on phases and cost types are not already set up for the project, they will be added to JCJP (Job Phases) and JCCH (Job Cost Header) as soon as the first pending change item for a given project is saved, regardless of how the ‘Phases on this Job are Locked’ option is set in PM Projects.

You also have the option to override the Total Amount by entering a fixed amount. This is useful if the final amount of the change order item is negotiated and agreed upon as a fixed amount, or if the unit price requires an override to make “even amount” unit prices. To enter a fixed amount, check the Fixed Amount Flag (Info tab, PM Pending Change Order items), and enter the Fixed Amt for the selected change order item.

Example

Net Amount = $6,000.00

Markup Total = $600.00

Amount-type add-ons are flat amounts, so the percentage is calculated instead of the add-on amount. The percentage is a calculation of the Add-On Amount divided by the Net Amount plus the Markup Total, plus any previous Add-On amounts.

The 'Add-on Type' assigned to each add-on determines how it will be calculated, and in what order. There are three types of add-ons:

• Net Total – The system calculates these add-ons first and bases them on Cost, Cost plus Markup, or Total, depending on the ‘Net Add-On Calculation Level’ you specified for the add-on in PM Project Add-Ons.

• Sub Total – These add-ons are calculated second and are based on the net amount plus markups, plus 'net total' add-ons. Sub total add-ons are calculated using a '5-cycle' method to provide the most accurate add-on total; that is, five calculations will occur for each sub total add-on, with the final calculation being the 'add-on' amount. This allows sub total calculations to include themselves, with the result being a more accurate add-on amount. The 5-cycle process works like this: The first calculation produces an 'add-on' amount, which is added to the 'total'. The four remaining calculations are handled in the same manner, except that the 'add-on amount' will be the 'variance' amount (i.e. the add-on's previous amount minus the current amount). During this process, the variance amount eventually nets to the lowest value possible, with the final 'add-on' amount being the add-on amount calculated during the last cycle.

For example:

Net Amount: $600,000.00

Markups: $4020.00

'Net Total' Add-ons: $0.00


The following 'Sub-Total' add-ons would be calculated as follows:

• Grand Total – This type of add-on will calculate an add-on amount based on the net amount plus markups plus 'net total' add-ons plus 'sub total' add-ons. The exception to this rule is when the ‘Include in Subtotal Add-on Calculation’ option is checked (in PM Project Add-Ons). In this case, grand total add-ons are calculated after net add-ons, with the resulting amount accumulated into the pending total. Subtotal add-ons are calculated next and will include the grand total add-ons. The sum of the grand total add-ons will then be subtracted from the pending total, and the grand total add-ons recalculated. You will typically use this feature when sub-total add-ons need to be based on the grand total rather than the net total.

PM Pending Change Orders

Change Orders - Overview

Project Add-Ons