Contracts
You can use contracts to track agreements between two parties. One party agrees to perform work, furnish labor, or furnish materials for an agreed-upon price that is paid by the other party.
The contract type determines if the contract is:
On the General tab, the banner displays:
- Original Value: The total from the schedule of values (SOV) on the Amounts tab.
- Approved Changes: The total applied cost (committing contracts) or applied budget (non-committing contracts) from the executed change orders.
- Revised Value: The sum of the original value and the approved changes.
- Potential Changes: (Committing contracts) The total applied cost from the potential change order (PCO) items that are linked to this contract but aren't linked to a subcontract change order (SCO). These items are displayed on the Change Orders tab.
- Potential Value: (Committing contracts) The sum of the original value, the approved changes, and the potential changes.
When you create a contract, you can select the format for the SOV amounts:
- Lump sum: A single amount for each SOV item.
- Unit price: The amount per unit for each SOV item.
- Enter a description for the contract.
- In the To Company field, select the company that will do the work.
- From the Type of Contract list, select the contract type.
- From the Rules list, select the contract rule.
- To use unit prices for SOV items, turn on the Unit Price toggle.
- Click Create.
- In the contract, add:
A check mark is displayed beside the committing contract types.
If this toggle is off, lump sums are used.
- Edit the description and the required information.
- Select the checkboxes for the information that you want to copy.
- Click Copy.
Depending on the original contract, the Type of Contract list only displays the committing or non-committing types.
The new contract includes the selected details, but not the comments and links, from the original contract.
Add contract details and information in the Information panel, the Detail tab, and the Contact Info tab.
- From the Spec Section list, select the spec section that applies to the majority of work in the contract.
- On the General tab, enter the scope of work and reference information such as the bid package and addenda.
- On the Detail tab, enter contract dates, percentages, and bond amounts.
- In the General Dates section, enter the key dates.
- In the Original Substantial field, select the date by which the work is expected to be substantially completed.
- In the Days field, enter the number of days after the original substantial date that the contractor has to complete punch list items and the work described in the contract.
- The Current Substantial field is calculated by adding the total number of extra days approved through change orders to the Original Substantial date.
- The Current Final date is calculated by adding the total number of extra days approved through change orders to the Original Final date.
- In the Contract Percentages section, enter the percentages for the types of companies that are performing the work:
- In the Default Retainage Percent section, enter the retainage percentages.
Contract percentages | |
---|---|
Field | Description |
% DBE | The percentage of the contract awarded to a disadvantaged business enterprise. |
% MBE | The percentage of the contract awarded to a minority business enterprise. |
% WBE | The percentage of the contract awarded to a woman-owned business enterprise. |
% VBE | The percentage of the contract awarded to a veterans business enterprise. |
% SBE | The percentage of the contract awarded to a small business enterprise. |
In the Current Retainage Held section, the amounts come from the applications for payment for non-committing contracts or contract invoices for committing contracts.
The amounts In the Bond Amounts section are only for your reference and aren't used anywhere in ProjectSight.
- Click the Contact Info tab.
- In the To Company and From Company sections, select the companies and contacts.
- In the Witnesses & Comments section, enter the names of the witnesses and any comments.
- Click the Detail tab.
- In the Actual Substantial field, enter or select the date that the contract work was substantially completed.
- In the Actual Final field, enter or select the date that the contract work was completed.
An SOV is the cost breakdown of the construction items in a contract and is the basis for periodic payments. The total sum of the SOV items is the original value of the contract.
- The contract rule determines when the original contract value is locked and how the contract value can be changed.
- When an SOV item is added to a contract invoice, the Locked checkbox is selected in the SOV grid.
- Click the Amounts tab.
- Click the Amounts tab.
- On the Amounts tab, click Add Revenue Codes.
- Select the checkbox for one or more revenue codes.
- Click Select.
- In the SOV grid, edit the details.
Only revenue codes that are added to approved budget items can be added as separate line items in the SOV grid.
By default, the Sched Value column is the sum of the Original Budget column for all budget items with this revenue code.
- Click an item, and then click Up or Down.
On the Clarifications tab of the contract, you can specify:
- Alternates: Different methods, materials, or scopes of work that add or subtract from the base value of the contract.
- Exclusions: Items or scopes of work that are specifically excluded from the contract.
- Inclusions: Items or scopes of work that are specifically included in the contract.
Additional clarification types can be added in the lookup list settings.
- Click the Clarifications tab.
- In the Type cell, select the item type.
- In the Item No. cell, edit the item number.
- In the Description cell, and then enter a description of the item.
- In the Notes cell, click , and then enter notes about the item.
- In the Reference cell, enter the number or name of any reference documents or files.
The item is moved automatically to the correct group.
The item number must be unique across the different types.
- Select the checkbox for the item, and then click Remove.
After you approve a committing contract:
- For the budget code of each SOV item, the amount is subtracted from the Uncommitted Costs column and added to the Original Commitments column.
- SCOs can be created for the contract.
The Approved for Budget toggle is locked for committing contracts with linked SCOs and for non-committing contracts.
On the Change Orders tab of the contract, you can manage the associated change orders. The tab includes a summary that displays:
For committing contracts, the Change Orders tab also displays the PCO items that are linked to this contract but aren't linked to an SCO. You can add those items to a new change order for the contract.
After you add a change order to the contract:
- In the Information panel, the Approved for Budget toggle (committing contracts), To Company field, and Rules field are locked.
- On the Amounts tab, the original value of the contract is locked, so the total cost of the SOV items can't be changed.
- On the Detail tab, the Original Substantial and Days fields are locked.
- The contract can't be deleted.
- (Committing contracts) Ensure that the Approved for Budget toggle is on.
- To add a change order for the current contract, do one of the following on the Change Orders tab:
- In the Change Orders section, click Add.
- (Committing contracts) In the Potential Change Order Items section, select the PCO items, and then click Create SCO.
- Enter a description for the change order, and then click Create.
- Enter the details in the change order.
- Click arrow_back Done.
In the change order, you can add PCO items (committing contracts) or PCOs (non-committing contracts), including ones that aren't linked to the current contract.
After the change order is created, the selected PCO items are moved from the Potential Change Order Items section to the Change Orders section.
For more information, see Subcontract change orders (committing contracts) or Prime contract change orders (non-committing contracts).
You can't create and link other records to the change order when it's opened from the contract. You can open it from the Subcontract Change Orders or Prime Contract Change Orders view and then create and link the records.
- On the change order row, click chevron_right (Open).
- Edit the details of the change order.