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Acronymsaka: potential change orderaka: change event

PCO (Potential Change Order)

In Plain English

An internal notice that a contractor uses to track a possible extra cost before formally asking the owner to pay for it.

Definition

A Potential Change Order is an internal tracking document used by contractors to identify and quantify a possible change to the contract scope, schedule, or cost before a formal change order request is submitted to the owner. PCOs allow the project team to monitor all open change items, track time-sensitive notice requirements, and ensure no compensable event falls through the cracks. Once the scope and cost are confirmed, the PCO is converted into a formal COR and then a fully executed change order.

Example

The superintendent logs a PCO the day an RFI response reveals that the specified windows require structural steel reinforcement not shown on the drawings.

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