Ministry of Transportation WBCMS Manual...the level of DOA approval required. If the Change Order is...

Ministry of Transportation

WBCMS Manual Construction Change Orders

Contract Management and Operations Branch

Ministry of Transportation WBCMS Change Order Manual

Date of Issuance: March 11, 2019 Page | 2

Table of Contents

Introduction ........................................................................................................................................................ 3

Initiating a Change Order ................................................................................................................................... 4

Internal Estimate ............................................................................................................................................ 7

By Variation in Tender Quantity / Revision in Tender Prices / Negotiated Price for a New Item .................. 7

Change Orders by Negotiated Lump Sum Payment / By Time and Material Basis ................................... 12

Delegation of Authority .................................................................................................................................... 14

MTO-Only Comments and Documents ........................................................................................................ 14

Cancelling a Change Order .......................................................................................................................... 14

Service Provider Estimate ............................................................................................................................... 16

Final Estimate .................................................................................................................................................. 17

Paying Quantity Changes/Positive Lump Sums/New Items ............................................................................. 24

Optional Fields ................................................................................................................................................ 25

RFC .......................................................................................................................................................... 25

EOT .......................................................................................................................................................... 26

Related Change Orders ............................................................................................................................ 27

Confidential Information – Who Can See What, and Where? .......................................................................... 28

Support ............................................................................................................................................................ 31



CA/MTO In-House CA, Contractor

Introduction

This manual will serve as a guide to aid users in the administration of Change Orders through WBCMS (Web-Based Contract Management Service). This is not a replacement for the Construction and Maintenance Change Order Manual. The CA initiates all construction change orders. If the CA determines that a change to the Contract is required in order to complete the contract, a Change Order is required to affect that change. It also serves to identify the changes to the scope of the contract, the quantity of that change, and the monetary impact of that change. The Change Order process must be broken down to its individual steps and all changes must follow the same process. The Change Order process consists of, and always has consisted of, two separate documents: the Change Order, and the Price Agreement. Briefly, the general workflow is as follows:

CA creates the CO record and provides initial, internal estimate of change and submits for financial approval (Delegation Of Authority DOA)

Upon DOA approval, CA is notified and issues the Change Order to contractor. Contractor prepares their estimate

Contractor submits their estimate for the work introduced in the Change Order, acknowledging that the work described in the CO shall be completed as part of the Contract.

CA reviews contractor estimate, and inputs final estimate. o IF negotiated value is within the approved initial estimate, CA creates the Final Estimate o IF negotiated value is above approved initial estimate, CA creates the Final Estimate and

CO again proceeds for DOA approval.

CA selects whether EOT resulting from CO will be allowed

Contractor acknowledges final terms of Change

CA finalizes change order’s estimate

Contractor either o Accepts the final terms of change and cost o Does not Accept the final terms of change and cost, or o Submits their initial notice of claim by clicking No…Proceed to Claim

CO then finalizes the associated Price Agreement o Accepts the final terms of change and cost

Contractor either o Accepts the final terms of change and cost o Does not Accept the final terms of change and cost, or o Submits their initial notice of claim by clicking No…Proceed to Claim



Initiating a Change Order Step 1: Contract Administrator How To:

1. CA navigates to the Change Order folder within the Change Management folder and clicks New.

Figure 1 Figure 2

2. The Change Order grid opens, and CA proceeds to fill out all of the required fields, starting with the Title. The Title should be a short description of the general scope of work contained in the Change Order. This is a searchable field in the change order list view, so take care to title it with a descriptor that can be easily queried later to retroactively identify the Change Order

3. CA links the Change Order to the appropriate RFC or EOT record by clicking the small grey link box and selecting the records from the picker window (Figure 3)

Note: the INC Record ID section will be automatically backfilled by the system if an INC is created and issued which is linked to the change order, thereby increasing interconnectivity between records to better illustrate situations. Similarly, the RFC and/or INC linked within the change order outlined in Step 3 will automatically backfill those records with this Change Order record ID.



Figure 3

4. The CA then selects the category and sub-category by clicking the grey box and selecting it from

the picker (Figure 4)

5. CA then selects the Change Order Type and Basis of Payment for the Change Order by clicking the appropriate tick boxes, and completes a detailed Description of the Work (Figure 5)

Note: The choice for Change Order Type includes changes that increase or decrease the value of the contract (Change in Work and Additional Work) as well as changes that do not change the value of the contract (ie: Change in Contract – Revision, deletion or addition of a specification, and Change in Interim Completion Date). The third basis of payment, while used to address changes of non-financial impact, still requires approval at the ACE level.



Figure 4

Figure 5

Note: the Description notes to reduce the quantity of sub-code 011 for Item 42 by 15.0m, and the Tender Item Qty Variations grid has the specific changes to each item detailed. This tracks what happened to the Culvert at this location, however no further action is required beyond the completion of the Change Order: a negative quantity doesn’t have to be posted against any sub-code, nor does the sub-code have to be deleted. A note in the diary referencing the change order would suffice.



Internal Estimate

6. CA now begins with the detailed population of the Change Order. Firstly, the CA inputs their internal estimate, prior to issuing the CO to obtain the contractor’s estimate. The Internal Estimate tab will populate with the necessary fields according to the Basis of Payment selected (Figures 8 & 9)

By Variation in Tender Quantity / Revision in Tender Prices / Negotiated Price for a New Item

Figure 8

Figure 9



7. Click on the small blue Plus sign for either of these options to reveal the Tender Item revision grids (Figures 8 & 9). At the bottom of these grid windows, click the Add box to open the tender item picker (Figures 10 & 11)

Figure 10 Figure 11

8. Scroll through the list and highlight all items associated with the Change Order, then click Select to populate the item grid. Be sure to utilize the filters at the top of each column to narrow the search field down, and more quickly navigate to the desired items and sub-codes (Figure 13). Once all items are selected, click Select

Figure 12



Note: For more detailed instruction on using the Filter features, see WBCMS Guide – Inspector’s Diary, steps 24-26.

Figure 13

Figure 14

9. The item grid above is populated with the items for the change order. The next step is to edit each of the items with the changed values. This is done by highlighting each item and selecting Edit to open the adjustment grid



10. Populate the Spec./SP No. followed by the Adjusted Quantity. The Adjusted Quantity field is where the amount of change is input, so: for a quantity reduction, a negative value is input; for an addition in quantities, a positive value is input (Figure 15). When completed, click the Save button at the bottom of the grid

Note: Only enter the amount that the quantity is going to change by, do not enter what the final, adjusted quantity is supposed to be. The system will calculate the final quantities based on the quantity of change input by the user. So if the user wishes to adjust an item from 10 units up to 15 units, they input 5 into the Adjusted Quantity field.

Figure 15

Figure 16



11. Continue this process for the remaining items in the Change Order until they have all been appropriately adjusted. You should find the changes reflected in the grid, manifesting in the Adjusted Value and New Remaining Value. The former will display the quantity of change, while the latter shows the new total quantity for each item (Figure 16)

Figure 17

12. The CA’s justification for the Change Order is attached within the Internal Estimate tab along with any other relevant information such as photos, correspondence, sketches, calculations, etc. assuming it is a non-confidential justification (Figure 17)

Note: While the contractor cannot see the Internal Estimate tab, they can see any comments or attachments added to the bottom, generic Comments or Attachments section. If there is a document the CA wishes to share with only the CSA, but not the contractor, it should be uploaded to the Internal Estimate tab

13. Upon final review of the Change Order for completeness and accuracy, the CA clicks Recommend, which prompts the system to assess the value of the Change Order to identify required level of DOA (Figure 20)



Change Orders by Negotiated Lump Sum Payment / By Time and Material Basis

14. For Change Orders by Negotiated Lump Sum Payment or on a Time and Material Basis, the CA will enter the total value of the Change Order and attach the estimate along with the justification and other supporting documentation. Attachments are mandatory for all Lump Sum or T&M Change Orders

Figure 18 - Negotiated Lump Sum Payment

Figure 19 – Time and Material Basis



15. Upon final review of the Change Order for completeness and accuracy, the CA clicks Recommend, which prompts the system to assess the value of the Change Order to identify required level of DOA (Figure 20)

Figure 20



Delegation of Authority

When the CA clicks Recommend, the system checks the value of the Change Order and determines

the level of DOA approval required.

If the Change Order is within the CA’s DOA, the record will automatically be approved, wherein the CA

simply returns to the record and issues the Change Order to the contractor to obtain their estimate.

If it requires a higher level of DOA approval, the system will run the record up to the appropriate approval

level, prompting users from whom action is required by email. Once financial approval is obtained, the

Change Order is returned to the CA for issuance to the contractor to obtain their estimate.

The system will always perform this check, regardless of DOA, so the CA will always have to click both

Recommend and Get SP Estimate, no matter how large or small the value. There may be various

levels of DOA approval between clicking Recommend and Get SP Estimate due to this check, but the

CA can check the progress of it using the History button.

MTO-Only Comments and Documents Any Change Order valued above the CA’s delegated financial authority has a tab to allow for confidential MTO comments and uploads. This tab is only accessible by MTO internal staff to view and edit (Figure 21 & 22). Because any record’s workflow must be with a user for that user to make changes or edits, only change orders that require a CSA level DOA approval, or higher, can have MTO only comments added. Lower value Change Orders within the CA’s DOA level do not require CSA approval, and therefore CSAs or others cannot make additions or edits to the Change Order.

Cancelling a Change Order When a Change Order is submitted to the CSA for DOA approval, the CSA only has the ability to Cancel the Change Order by clicking the Cancel button (not to be confused with the red Cancel button – See Figure 23). This terminates the Change Order completely. Lower value Change Orders within the CA’s DOA level do not require CSA approval, and therefore CSAs do not have the opportunity to Cancel a change order within the CA’s DOA. A CSA can only cancel a CO if it requires their DOA approval, or higher. When DOA is required, the workflow of the CO goes to the CSA, where they can then Cancel the CO. if the CO is below the CA’s DOA, the workflow never goes to the CSA, and therefore opportunity to cancel the CO is not available to the CSA.



Figure 21

Figure 22

Figure 23



Service Provider Estimate Now that the Change Order has been created by the CA, an Internal Estimate has been established, and DOA has been approved, the record workflow moves to the contractor to obtain their estimate when the CA issues it. The contractor independently uploads their own estimate of the change and submits back to the CA for review. Step 2: Contractor How To: Regardless of Change Order type, the process for the Contractor inputting their estimate is the same as for the CA. Contractor simply repeats steps 6 through 14, as required, depending on the type of Change Order. There are only two differences in the process between that of the CA and contractor:

the contractor’s tab will read SP Estimate instead of Internal Estimate (Figure 24)

the contractor’s action button will say Submit Estimate (Figure 25)

Figure 24 Figure 25



Final Estimate Once the Service Provider Estimate is submitted, the Change Order status will be pending on the CA to review their estimate and create the final estimate. Again, this process differs little from that of the Internal or Service Provider Estimate, regardless of Change Order type. The CA simply moves to the Final Estimate tab and inputs the final figures. For clarification on this process, see steps 6 through 14. If the final estimate has not increased from that of the internal, DOA approval will be maintained, however if it has increased at all, obtaining DOA approval will again be required prior to completing the Price Agreement. The system will automatically identify if the DOA has breached the next level, and circulate the Change Order through the DOA approval process again. There are only two differences between this stage and the previous:

the CA will now see three tabs, and enter their final estimate under the Final Estimate tab (Figure 25)

the CA’s action button will now say Final Estimate Ready (Figure 26)

Figure 25

Figure 26

16. CA reviews the contractor’s estimate and, upon arriving at the final number, clicks on the Final Estimate tab and inputs that final figure(s) into the available fields (depending on Change Order type)



Note: Alternatively, if not enough information has been provided to support the contractor’s estimate, the CA can click More Information to send the record back to the contractor. Comments should be placed in the generic Comments section at the bottom of the grid outlining why the record’s been sent back prior to clicking More Information. This is where the Change Order negotiation occurs – going back and forth between Service Provider Estimate and Final Estimate until a number is reached.

17. When no further action on the Change Order is required, CA enters final dollar values, ensures all necessary supporting documentation has been referenced, linked and uploaded to the appropriate location (depending on level of sensitivity), and clicks Final Estimate Ready to send to the contractor for acknowledgement of the final figure (Figure 27)

Note: under the attachments section of the Final Estimate tab, a reminder has been placed notifying that all attachments in that particular area are visible to MTO Internal users and CA only (Figure 28).

Figure 27 Figure 28

18. Contractor reviews the Service Provider Estimate and the Final Estimate for acceptance. Contractor’s options from here are to Accept, Do Not Accept, or No…Proceed to Claim. If acceptance, contractor clicks Accept (Figure 29)

Figure 29



Notes: - Selecting Do not Accept will return the Change Order to the CA to Review the Service

Provider’s estimate. Again, this is the negotiation process - Selecting No…Proceed to Claim will end the Change Order negotiations and the

Workflow Status will be Proceed to Claim. o This does not initiate the claim, but simply serves at the Initial Notice to Claim.

Contractor still has to go the Claims record and create a new Claim, associating the Change Order in dispute

19. CA opens the accepted Change Order and selects Generate Price Agreement to reveal the Price Agreement for review (Figures 30 & 31)

Figure 30



Figure 31

20. Upon review of the Price Agreement, the CA has two Options: Submit Price Agreement for approvals or Not Acknowledged in the event Change Order will not proceed.

21. Assuming approval, and before selecting Submit Price Agreement, the CA selects either Yes or

No in the Final Estimate tab to indicate if an Extension of Time is permitted for the Change Order (Figure 32). If the work required an extension of time, allowing that here will allow for the linking of the EOT to the Change Order at a later date.



Figure 32

Note: If the contractor disagrees with not being allowed an Extension of Time on the change, an RFC is submitted in regards to the Change Order.

22. CA clicks Submit Price Agreement. A message will ask for confirmation that the price agreement has been generated and reviewed. Select Cancel to review or OK to confirm

Note: The Price Agreement will now be pending on the Contractor to review and accept. Again, contractor has three options: Accept, No…Proceed to Claim and More Information (Figure 33). Clicking More Information sends the Price Agreement back to the CA, after the contractor places their reasoning for pushing it back in the comments. Again, this is the negotiation process.



Figure 33

23. Contractor generates the Price Agreement for review. The contractor must acknowledge the decision on the allowance of an Extension of Time related to the change (Figure 34)

Figure 34



24. When all is finally accepted and the allowance of the Extension of Time is acknowledged, contractor clicks Accept. A message will ask for confirmation that the price agreement has been generated and reviewed. Select Cancel to review or OK to confirm.

25. CA selects Approve to finalize the Price Agreement and complete the Workflow (Figure 35). Any associated quantities will be automatically adjusted at the item level, which will be reflected in the Tender Items list under Contract Setup, and in the Cost Sheet

Figure 35



Paying Quantity Changes/Positive Lump Sums/New Items Once a change order has been completed as prescribed above, the changes are now part of the contract. Associated quantities have been added or removed, new items established, lump sums to be paid, etc. however these are only the first steps in actually paying the change order. If a quantity has been added to an item by Change Order, that addition and quantity manifests itself under that item as a sub-code, appended to the end of the sub-codes list for that item. It is also, therefore, a sub-code to which quantities may be posted, which means a quantity added by change order will still require the actuals to be input into an Item Posting record, reconciled and pulled into an invoice. If it is a quantity being added to an existing sub-code, post the quantity under the existing sub-code, however if the additional quantity is in a new location, use the Change Order sub-code to post against. This is not needed for negative quantity adjustments, as those changes simply reduce the total, and require no further actions by the user to do so, beyond the Change Order itself. If a positive Lump Sum amount has been established under change order, it, too, will need to be posted against. It can be a prorated Lump Sum item, being posted against in small increments of less than 1 (paying a certain percentage of the sum), or a lump sum paid at once, wherein an Item Posting still must be made, for a total quantity of 1 (paying 100% of the sum). Negative lump sum change orders are not valid and cannot be interpreted by the system, and must be administered through separate means. New items also will need to be posted against. The Change Order establishes the change, however the contractor still must execute the associated work, and is typically not paid until they have. Therefore, the Change Order establishes the required scope, items, quantities, restrictions, parameters, etc. to which quantities can be posted through an Item Postings record.



Optional Fields The CA may link Change Orders to associated Requests for Clarification (RFC), Extensions of Time (EOT), or Related Change Orders.

RFC

Where a Change Order is determined to be necessary as the result of an RFC, the RFC is selected by clicking inside the grey box with three dots, which will open a picker box displaying available RFCs to be linked (Figures 36 & 37). This connection can also be achieved through the RFC record, by clicking the action button Create CO.

Figure 36 Figure 37

The Change Order will be populated with a hyperlink to the RFC (Figure 38). The system will also automatically backfill the RFC record with the associated Change Order record, so they will both reference each other with hyperlinks upon successful completion of both records, thereby enhancing traceability.

Figure 38



EOT A Change Order is required when there is a change to the Interim Completion Date or Completion Date. The EOT is selected by clicking inside the grey box with three dots which will open a drop down list, similar to the process for linking RFCs (Figures 39 & 40).

Figure 38 Figure 39 The Change Order will be populated with a link to the EOT (Figure 40).

Figure 38



Related Change Orders

There are many instances wherein a change Order being created may be related to, or otherwise benefit from referencing a previous Change Order. This referencing is accomplished through the Related Change Order linking. The new Change Order is associated to the previously approved Change Order by selecting Add (Figure 41) under the Related change Order section in the Change order record grid, navigating to the related Change Order, highlighting, clicking Select (Figure 41).

Figure 41 Figure 41

The Change Order will be populated with a hyperlink to the related Change Order (Figure 42).

Figure 42



Confidential Information – Who Can See What, and Where? All files and comments placed here can be seen by MTO, CA and Contractor. All non-confidential attachments and comments can be placed here



All files placed here can be seen by MTO & CA ONLY. Attachments placed here will not be visible to the contractor (if comments are needed, upload a PDF of them).



All files placed here can be seen by MTO ONLY. Attachments placed here will not be visible to the contractor or the CA. Comments can be added, with attachments.



Support All questions can be forwarded to the WBCMS Team:

905-704-3276 (7:30am to 5pm EST) or 1-844-283-9446

[email protected]

mailto:[email protected]

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