Create change event items

Change Event Items

Change event items represent the detailed breakdown for the parent change event. This includes identifying the contracts, control accounts, and control elements affected by the change, whether there is an impact on budgets and/or costs, and the impact amounts.

Creating Change Event Items

The add change event item wizard takes you through the process of adding an item. With the wizard, you can define the budget and cost impact for the item. If the cost impact is a contract change (variation), you must select a contract. Define whether the change will result in a new pay item for the contract, or if it modifies an existing pay item. You can also create a budget transfer after defining the cost and budget impact.

1. On the change event register, select a change event.
2. Click on the add icon in the lower grid.
3. Fill in all required fields. The Item No field is automatically populated and can be edited if required. You can also designate whether this change event item will include or exclude markup with the markup exempt checkbox.

4. Click Next to move to step 2 – cost impact.
5. Define a cost status and cost change method and fill in all required fields.

Differences between cost change methods are as follows:

Use contract change

• Used when the change event item directly affects a downstream contract, and you plan on creating a downstream contract change when approved.
• The Draw down from ETC (FCC) by cost change amount option determines if the ETC amount on the control account and control element will be decreased by the cost change amount. Note that a negative cost change will increase ETC.

Adjust contract without contract change

• Used when no contract is impacted but you need to adjust the ETC (FCC) for the control account and control element. A positive cost change will increase ETC and a negative cost change will decrease ETC.

No cost change

• There are no downstream contracts impacted by this change and you do not need to adjust the ETC. Note: the ETC may be affected by the budget impact amount depending on the control account forecast method.

6. Click Next to move to step 3 – budget impact.
7. Define a budget status and a budget change method and fill in all required fields and click Next.

Differences between budget change methods are as follows:

Use contract change 

• Used when the change event item directly affects an upstream contract, and you plan on creating an upstream contract change when approved.
• If there is a cost change defined in the previous step, the control account, and control element fields are disabled in this step to match those defined in the previous step

Adjust contract without contract change

• Used when no upstream contract is impacted but you need to adjust the ETC (FCC) for the control account and control element.
• The control account and control element fields are disabled in this step if 'use contract change' or 'adjust cost without contract change' are selected in the previous step.
• When 'no cost change' is selected in the previous step, the control account and control element fields can be modified.

Transfer funds between control accounts

• In the Transfer To section, the control account and control element fields are disabled to match the selections made in the previous step. If 'no cost change' was selected in the previous step, these fields are editable.
• The Adjust “Transfer To” ETC by transfer option is optional but when selected, the Estimate to Complete value for the change event items control account and control element will be increased by the transfer amount. Note: negative transfers will conversely decrease ETC.

No budget change 

• Used when there is a cost impact but no budget impact related to this change event item.
• This option is disabled if 'no cost change' is selected in the previous step.
  
  

8. Once you’ve finished entering the information, click Finish to create the change event item. You can then add or modify the data in the change event item lower grid.