Define Impact

Explanation

Use this activity to enter the impact the contract change order will cause on cost/revenue, risk, schedule, scope and other areas.

Note: The financial impact can be entered in two tabs, depending on whether the contract change order is connected to a project or not. The financial impact for a contract change order which is not connected to a project in the header, is entered in the Contract Change Order/Impact/Financial – This Order tab (which is described in this activity). If the contract change order is connected to a project then the financial impact should be entered in the Contract Change Order/Forecast tab instead. The Contract Change Order/Forecast tab allows the same advanced functionality as when the forecast lines are entered in a project budget or forecast e.g. using WBS/CBS structure, multi-currency, spreading etc. The cost or revenue will also be summarized per cost element and displayed in the Financial - This Order tab.

Prerequisites

• A contract change order should exist.
• It is optional but recommended that the Change Type is defined for the contract change order, since it will control the type of information that is entered in the Financial - This Order tab.
• Cost/revenue elements must be predefined in the Cost/Revenue Elements window.
• If you want to view the impact on cost and revenue from related sub orders you should first define the contract change orders that are related to the selected parent contract change order.

System Effects

• A contract change order is updated with relevant impact information. 

Window

Contract Change Order

Related Window Descriptions

Contract Change Order
Contract Change Order/Define Impact

Procedure

Note that all the following steps are optional:

1. Open Contract Change Order window and select the required contract change order.
2. Select the Impact/Financial - This Order tab to enter the expected cost or revenue.
3. Enter a brief description in the Impact on Cost/Revenue field describing the impact this change order will have on the cost, revenue or hours.
4. Create a new record (F5) in the lower table.
5. Select the appropriate cost/revenue element from the List of Values to enter the expected impact.
6. Enter the expected cost or revenue in the Expected Cost or Expected Revenue fields. Optionally you can enter expected hours in the Expected Hours field.

Note: On a later date, when you e.g. request a cost from a supplier or revenue from a customer and get an agreement about the cost or revenue, you can update these values in the Requested Cost, Agreed Cost, Requested Revenue, Agreed Revenue fields for the cost/revenue elements in the contract change order.

7. Select the Impact/Risk tab to enter a description in the Impact on Risk field describing the impact this change order will have on the risk.
8. Select the Impact/Schedule tab to enter a description in the Impact on Schedule field describing the impact this change order will have on schedule, e.g. if and how much the project will be delayed if this change order is implemented.
9. Select the Impact/Scope tab to enter a description in the Impact on Scope field describing the impact this change order will have on the scope.
10. Select the Impact/Other tab to enter a description in the Other Impact field describing the impact this change order will have on other things like resources, other changes, other projects etc.
11. Save the record.(F12).