Add-On Basis

For each project add-on, you must specify the basis for the add-on; that is, the amount on which to base the add-on cost. You can specify to use a flat amount or have the calculation based on a percentage of the overall change order or the total costs for a specific cost type.

If the add-on is for additional costs (e.g. bonds), you can redirect the costs to a specific phase/cost type and/or contract item. If you wish to distribute the add-on amount to all phases on a change order with a specific cost type, leave the phase blank and enter only the desired cost type. The system will distribute the add-on amount proportionally to all phases on the change order with that cost type, adjusting the last phase/cost type for rounding (if necessary).

Example:

Add-On Total Type

This section is used to specify the add-on type, which determines how the add-on will be calculated.

• Net Total – This add-on type is calculated first, and will be based on either Cost, Cost plus Markup, or Total, depending on the ‘Net Add-On Calculation Level’ selected (see below).

• Sub Total – This type of add-on will calculate an add-on amount based on the net amount plus markups plus net total add-ons. Sub total add-ons do a cycle calculation 5 times to provide the most accurate add-on total.

• 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.

Add-ons defined here are automatically set up and calculated for each item you enter on a change order. Calculations are based on the item's net amount and the add-on type. Net total add-ons are calculated first, then sub total add-ons, and lastly, grand total add-ons.

Net Add-On Calculation Level

This option is used in conjunction with the Net Total add-on type and allows you to specify the amounts on which to base the add-on calculation. Options are as follows:

• C-Cost – Calculation is based on net amount only.

• M-Cost plus Markup – Calculation is based on net amount plus markups.

• T-Total – Calculation is base on net amount, plus markups, plus lower sequential add-ons.

Revenue

Use this section to redirect add-on revenue to a separate contract item (when approving pending change order items). Once you check the Re-direct Add-on Revenue When Approved option, you will need to specify the contract item to which you are redirecting the add-on amount. If you specify a contract item that does not exist for the contract, it will be added once the ACO Item is generated. The contract item description will default from the add-on description, the UM will be set to LS, and the amounts will be set to 0.00.

Pending change orders can only point to a single contract item; redirecting an add-on to a separate contract item will therefore require that a separate change order item be created. The Create ACO Item option allows you to specify the numbering method to use when creating ACO items:

• Use Revenue Item – This option will create an ACO item number equal to the specified Revenue Contract Item number.

• Sequential – This option will generate a sequential item number based on a specified Start at ACO Item # value.

• Fixed – This option allows you to use a specific ACO item number.

When approving a pending change order/item, the type of change order item determines how the system handles the revenue add-on amount. If a ‘pending’ amount (item amount changes based on markups, add-ons, and phase detail), the system will deduct the add-on amount from the original PCO item. If a ‘fixed amount’ item, the add-on amount is not deducted from the PCO item amount.

PM Company Add-ons

Change Order Totals