Skip to main content
All CollectionsTraining and OnboardingTraining Script Modules (Rep)
Module 4: Contracts & Contract Changes
Module 4: Contracts & Contract Changes
E
Written by Erica Gasbarro
Updated over 6 months ago

Create Vendor Contracts

Within INGENIOUS.BUILD you can create a contract directly from a bid package response, which carries over all the previously entered information to help you save time. You will now create contracts for the vendor you selected for architectural services.

A. Execute a Contract from a Bid Package Response

  1. Navigate to Flyers Architecture's bid card.

  2. Click Proceed to Contract.

    1. Select Proceed to Contract

  3. Notice the details from the manual bid carried over into the Summary section of the Contract Details tab. This can be edited if necessary by clicking Edit Summary.

  4. Upload an executed contract document.

    1. Click + Add executed contract documents

    2. Upload Flyers Architecture_Architecture Contract.pdf by clicking Browse Files and uploading from your computer

    3. Click Save

  5. Look at the SoV / WBS tab. SoV stands for Schedule of Values and WBS stands for Work Breakdown Structure. Click SoV / WBS at the top of the page. The items from the bid carried over to the contract. If necessary, the SoV can be edited by clicking Edit SoV / WBS.

  6. Click Approve at the top of the page

    1. Type 'YES' to confirm

    2. Add Note: Approved on {today's date}

    3. Click Approve original contract

  7. Click Execute at the top of the page

    1. Upload Flyers Architecture_Architecture Contract.pdf by clicking Browse Files and uploading from your computer

    2. Click Execute

  8. Click Approve SoV / WBS at the top of the page

    1. Click, Yes approve SoV / WBS

  9. Navigate to the Master Project Budget / ACR to view this committed cost. Notice the value for the architect has moved from Column I to Column F, which is the Original Contract Amount.

Your architect's contract is now executed. Now that the contract is marked as executed, change orders and invoices can be entered on behalf of this contract.

B. Upload an Executed Contract

Besides creating a contract directly from a bid package, you can also create contracts for vendors without needing a received bid. Let's create a contract for your MEP Engineer.

  1. Use the left hand navigation to return to the Project Contracts page.

  2. Click + Add Contract.

    1. Select Vendor contract and hit Next Step

  3. Fill out the Contract Details

    1. Contract Name: MEP Engineering Services

    2. Vendor: Click Select Vendor and choose Mike Madano from North Star MEP. Click Bookmark and hit Save

    3. Contract Holder: ABC Client Co. with Agent

    4. Contract Type: Standard Contract Agreement (Single Stage Agreement)

    5. Initiation Date: Today's Date

    6. Click Next Step

  4. On the Contract Documents tab, select Yes, I have an executed contract. You will assume you already have an executed agreement and are looking to input this contract for record.

    1. Upload North Star_MEP Contract.pdf from your computer by clicking browse files

    2. Click Next Step

  5. Skip Insurance Requirements by clicking Next Step again

  6. Skip Rules by clicking Next Step again

  7. Complete the Schedule of Values

    1. Use the items on North Star_MEP Contract.pdf to populate the quoted items for this contract.

      1. Click Load from Template

      2. Select the ‘MEP Engineer (IO) - MEP Training Template’, click Load

      3. Delete line items from the template that are not used on North Star's contract by clicking the trash can icon for:

        1. Additional Eng. Services - Special Fire Prot. System (FM 200; Pre-Action; Other)

        2. Mark-up on Miscellaneous Engineer Consultants

      4. Input the value for each quoted item based on the North Star MEP Engineer Contract document

      5. Assign Project Cost Code '0290: MEP Engineer' for all Quoted Items

  8. Click Save at the top of the page.

  9. Click Mark as Executed

    1. Click Mark as Executed

  10. Click Approve SoV / WBS

    1. Click, Yes, approve SoV / WBS

Your MEP Engineer's contract is now executed. Now that the contract is marked as executed, change orders and invoices can be entered on behalf of this contract.

C. Create a Main Contract

Let's enter the contract between yourself and your client. This is referred to as the "main contract" on a project.

  1. Use the left hand navigation to return to Project Contracts.

  2. Click + Add Contract.

    1. Select Main contract and hit Next Step

  3. Enter Contract Details (use attachment as reference My Contract_PM Services.pdf):

    1. Contract Name: Project Management Services

    2. Client: Click Select Client and choose John Smith from ABC Client Co. Click Bookmark and hit Save

    3. Agreement Type: Advisory

    4. Contract Type: Standard Contract Agreement (Single Stage Agreement)

    5. Initiation Date: Today's Date

    6. Click Next Step

  4. On the Contract Documents tab, select Yes, I have an executed contract. You will assume you already have an executed agreement and are looking to input this contract for record.

    1. Upload My Contract_PM Services.pdf from your computer by clicking browse files

    2. Click Next Step

  5. Skip Insurance Requirements by clicking Next Step again

  6. Skip Rules by clicking Next Step again

  7. Fill out the SoV / WBS tab. You will now use the items on the Project Management Contract document to populate the quoted items for this contract.

    1. Click Add Schedule of Values / Work Breakdown Structure to start adding items

    2. Add the items found on the "My Contract PM Services" Contract document and populate the respective values

    3. Assign Project Cost Code '0490: Project Management Services' for all Quoted Items

  8. Click Save as Executed

    1. Click Save as Executed

  9. Click Approve SoV / WBS

    1. Click Yes, approve SoV / WBS

You have now executed your main contract with the client on this project. Now your company can submit change orders and invoices to your client to get paid for your services.

Contract Changes

D. Create a Vendor Change Order

Since North Star MEP is working off-system, you have received a change order from them via email and have already gotten it approved by the client. You now need to upload it into the system to input it for record.

  1. Using the Project Navigation Menu, navigate to Contract Changes.

  2. Click + Create at the top of the page.

    1. Select Contract Change

    2. Select North Star MEP

    3. Select Upload executed agreement

    4. Click Next Step

  3. Fill out the Details tab (use attachment as reference North Star MEP Change Order 001.pdf):

    1. Upload Executed Agreement: click browse files to upload MEP Engineer Contract Amendment 001.pdf from your computer

    2. Name: Design Fire Suppression System

    3. Unique ID: Add Services 01

    4. Type: Owner / Client Change

    5. Received date: Today's date

    6. Schedule Impact: No

    7. Source: Meeting Minutes

    8. Description: Copy the Vendor’s description from the attachment

    9. Click Next Step

  4. Upload North Star MEP Change Order 001.pdf under Supporting Documents

  5. Fill out the SoV / WBS tab:

    1. Enter a name SoV item by typing "Add Service for Fire Suppression", and hitting enter

    2. Apply Cost Code '0290: MEP Engineer'

    3. Input the following Change Order cost breakdown based on the North Star MEP Add Service 01 document using the + Add WBS 2 button to add multiple cost lines

    4. Click Save as Draft at the top of the page

  6. Click Mark as executed

    1. Mark as executed

E. Create a Change Order for Your Contract

You now need to submit a change order to your client for additional services they requested from you.

  1. Using the Project Navigation Menu, navigate to Contract Changes.

  2. Click Create Your Change Order

    1. Select the main contract

    2. Select Start from scratch

    3. Click Next Step

  3. Fill out the Details tab:

    1. Name: Management of FF&E

    2. Unique ID: CO12

    3. Type: Owner / Client Change

    4. Created date: Today's date

    5. Schedule Impact: No

    6. Description: Additional management services for addition of FF&E package into scope of work. Directed by email from Kim Johnson.

    7. Click Next Step

  4. On this tab you have the ability to attach vendor change orders or amendments within your change order. This is most applicable for change orders for vendor contracts held in principal. Skip the Supporting Documents tab by clicking Next Step

  5. Fill out the SoV / WBS tab:

    1. Select SoV item "Construction/FF&E Management" by using the dropdown

    2. Apply Cost Code '0490: Project Management Services'

    3. Input the following Change Order cost breakdown

  6. Click Approve at the top of the page to internally approve this change order before sending to your client

    1. Type 'YES'

    2. Click Approve change order

  7. At this point you would submit your change order to your client either through the INGENIOUS platform, or off-system by another method. To create an export of your change order, click the export icon at the top of the page and view the pdf export.

  8. Click Mark as submitted to client

    1. Yes, mark as submitted to client

  9. After your client has approved the change order, you will click Record client approval

    1. Approved by: Kim Johnson

    2. Date Approved: today's date

    3. Type 'CONFIRM'

    4. Click Record Client Approval

  10. Click Execute

    1. Click browse files to upload the co amendment

    2. Click Execute

You have successfully input a change order for additional services to your contract. You simulated going through the approval process with your client until the change order is executed. Now let's reallocate money within the budget to cover these additional changes.

F. Process a Master Budget Change

As the project has evolved, you'd like to reallocate money from your contingency allowance into the MEP engineer budget. Let's walk through how to do this.

  1. In the left hand navigator, click on the Master Project Budget/ACR.

  2. Select the Budget Changes tab.

  3. Click Add New Budget Change.

  4. Enter the following information under Details:

    1. Budget Change Category: Contingency Reallocation

    2. Reason for Change: Design Change

    3. Description: Reallocation of contingency funds to MEP Engineer

    4. Click Next Step

  5. Enter the following information under Budget Line Items:

    1. Cost Code From: '06.1090 Miscellaneous Cost – Project Contingency'

    2. Cost Code To: '02.0290- MEP Engineer'

    3. Change Amount: $14,000

  6. Click Save as Pending

    1. Click Yes, Save as Pending

    2. Notice back on the Master Project Budget / ACR, the value is now reflected in Column D Pending Budget Changes

  7. Click into the budget change you just created

  8. Click Approve

    1. Type: YES

    2. Click Approve budget change

  9. Now that the budget change is approved, the budget change amount can now be seen moving $ from '06.1090 Miscellaneous Cost – Project Contingency' to '02.0290 Professional Design Services - MEP Engineer' in the Approved Budget Changes (Column B). Go take a look for yourself by clicking back to the Budget Summary tab

You have just processed your first budget change. Any time you need to reallocate money within your budget, or add or remove money from your budget, you will utilize Budget Changes.

Proceed to Module 5: Invoicing

Module 5

Did this answer your question?