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What are the different contract variation tiers?

Answer

When configuring the number of main contract variation (MCV) tiers for the Main Contract tool or the number of Commitment Variation (CV) tiers from the Commitments tool, you can choose between a 1-tier, 2-tier-, or 3-tier configuration. The variation configuration settings must always be set up after you enable the Main Contract or Commitments tool.

 Important
You cannot change these settings after you begin creating variations that affect the commitments and main contracts on your project.

To learn how variation tiers can be configured in these contract tools:

Main Contract Variation Tiers

The Main Contract tool can be set up to manage your project's variations using a 1-tier, 2-tier-, or 3-tier configuration. See Configure the Number of Main Contract Variation Tiers. The following workflow diagram describes how your users will manage variations, depending upon the configuration setting you choose for the Main Contract tool.

  • 1-Tier (One-tier, a.k.a. 'single-tier'). This setting limits your users to creating a main contract variation (MCV) when there is a change to the original scope of work on your project's Main Contract. These MCVs can then be sent to the appropriate person (a.k.a., the owner or main contractor) for approval.
  • 2-Tier (Two-tier). This is the default configuration setting for the Main Contract tool. With this configuration, your users first create Potential Variations (PCOs). The variations can then be grouped into a main contract variation (MCV) which can then be sent to the appropriate person (e.g., the owner, the main contractor, the main contractor, etc.) for final approval.
    NoteIf your company or project's billing process does NOT require you to group all of the approved variations for the month into a single, combined variation for final signature, the two-tier configuration is the recommended setting for the Main Contract tool. 
  • 3-Tier (Three-tier). With this configuration, your users create Potential Change Orders (PCOs). These PCOs can then be added individually or grouped into a variation request (VR). Next, the CORs can be submitted for approval. Upon approval, you can then group these CORs into a single main contract variation (MCV) .  

Commitment Variation Tiers

The Commitments tool can be set up to manage your project's variations using a 1-tier, 2-tier-, or 3-tier configuration. See Configure the Number of Commitment Variation Tiers. The following workflow diagram describes how your users will manage variations, depending upon the configuration setting you choose for the Commitments tool.

  • 1-Tier (One-tier, a.k.a., 'single-tiered'). Single tier variations consist solely of a Commitment Variation which can be sent for approval.
  • 2-Tier (Two-tiered). Two tier variations begin with a Commitment Potential Variation (CPV). Commitment Potential Variations are then rolled up and grouped into a Commitment variation (CV) which can be sent for approval. In a typical Main Contractor scenario where the commitments are subcontractors, this is the recommended setup as it will allow you to include multiple, discrete changes into a single CV.
  • 3-Tier (Three-tiered). Three tier variations begin with the creation of a Commitment Potential Variation. Individual or grouped CPCOs are then bundled into variation requests (CORs). Variation requests are then grouped into Commitment Variations (CCOs) which can then be sent for approval. The CV is the document that will actually increment the contract price and allow a variation to be included in a billing.

See Also