Overview
Experience streamlined workflows that enhance collaboration, improve project visibility, and ensure better control over your project's financials and timelines.
Make contract management more efficient, less error-prone, and fully integrated with your broader project management system to ensure successful project delivery every time.
Process
A. Execute a Contract from a Bid Package Response
Navigate to Flyers Architecture's bid card.
Click Proceed to Contract.
You will be asked if you would like to notify the bidder. In this exercise, select Proceed to Contract.
Notice the details from the manual bid are carried over into the Summary section of the Contract Details tab. If necessary, this can be edited by clicking Edit Summary.
Upload an executed contract document.
Click Upload Documents to Approve.
Upload Flyers Architecture_Architecture Contract.pdf by clicking Browse Files and uploading from your computer. Click Save.
Navigate to SoV / WBS, click Edit SoV/WBS to enter the cost code '02.20: Architect', then click Apply to All.
Click Save.
Look at the SoV / WBS tab. SoV stands for Schedule of Values, and WBS stands for Work Breakdown Structure. Click the SoV / WBS tab, and you'll see the items from the bid carried over to the contract.
Click Approve.
Add Note: Approved on {today's date}.
Click Approve original contract.
Click Execute.
Upload Flyers Architecture_Architecture Contract.pdf by clicking Browse Files and uploading from your computer.
Click Execute.
Click Approve SoV / WBS at the top of the page.
Click, Yes, approve SoV / WBS.
Navigate to the Project Budget module to view this committed cost.
Note that 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.
Use the left-hand navigation to return to the Project Contracts module.
Click + Add Contract.
Select the Vendor contract and click Next Step.
Fill out the Contract Details.
Contract Name: MEP Engineering Services.
Vendor: Click Select Vendor and choose Mike Modano from North Star MEP. Click Bookmark, then click Save.
Contract Type: Standard Contract Agreement (Single Stage Agreement).
Initiation Date: Today's Date.
Click Next Step.
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 the record.
Upload North Star_MEP Contract.pdf from your computer by clicking Browse Files.
Click Next Step.
Skip Insurance Requirements by clicking Next Step again.
Skip Rules by clicking Next Step again.
Complete the Schedule of Values.
Use the items on the North Star_MEP Contract.pdf to populate the quoted items for this contract.
Click Load from Template, then Open Lists & Templates.
Select the ‘MEP Engineer - MEP Training Template’, click Load selected.
Delete line items from the template that are not used on North Star's contract by clicking the trash can icon for:
Additional Eng. Services - Special Fire Prot. System (FM 200; Pre-Action; Other)
Mark-up on Miscellaneous Engineer Consultants
Input the value for each quoted item based on the North Star MEP Engineer Contract document and assign Project Cost Code '02.50: MEP Engineer' for all items.
Click Save as Executed at the top of the page.
Click Approve SoV / WBS.
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 you and your client. This is referred to as the "main contract" on a project.
Use the left-hand navigatior to return to the Project Contracts module.
Click + Add Contract.
Select the Main contract and hit Next Step.
Enter Contract Details (use the attachment My Contract_PM Services.pdf as a reference):
Contract Name: Project Management Services
Client: Click Select Client and choose John Smith from ABC Client Co. Click Bookmark, and then click Save
Agreement Type: Advisory
Contract Type: Standard Contract Agreement (Single Stage Agreement)
Initiation Date: Today's Date
Click Next Step.
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 the record.
Upload My Contract_PM Services.pdf from your computer by clicking Browse Files.
Click Next Step.
Skip Insurance Requirements by clicking Next Step again.
Skip Rules by clicking Next Step again.
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.
Click Add Schedule of Values / Work Breakdown Structure to start adding items.
Add the items listed on the "My Contract PM Services" Contract document and populate the respective values.
Assign Project Cost Code '03.10: Project Management Consultant' for all items.
Click Save as Executed.
Click Approve SoV / WBS.
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.
Using the Project Navigation Menu, navigate to the Contract Changes module.
Click + Create at the top of the page.
Select Contract Change.
Select North Star MEP.
Select Upload executed agreement.
Click Next Step.
Fill out the Details tab (use attachment North Star MEP Change Order 001.pdf as a reference):
Upload Executed Agreement: click browse files to upload MEP Engineer Contract Amendment 001.pdf from your computer
Name: Design Fire Suppression System
Custom ID: Add Services 01
Type: Owner / Client Change
Received date: Today's date
Schedule Impact: No
Source: Meeting Minutes
Description: Copy the Vendor’s description from the attachment.
Click Next Step.
Upload North Star MEP Change Order 001.pdf under Supporting Documents, then click Next Step.
Fill out the SoV / WBS tab:
Click + Add WBS 1.
Enter a name SoV item by typing "Add Service for Fire Suppression" and hitting enter.
Apply Cost Code '02.50: MEP Engineer'.
Input the following Change Order cost breakdown below using the + Add WBS 2 button to add multiple cost lines.
Click Mark as Executed at the top of the page. Your Contract Change is now complete!
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.
Using the Project Navigation Menu, navigate to the Contract Changes module.
Select the Your Change Orders tab, then click Create to start creating a change order.
Select Type: Contract Change
Select the Main Contract.
Select Start from scratch.
Click Next Step.
Fill out the Details tab:
Name: Management of FF&E
Unique ID: CO12
Type: Owner / Client Change
Created date: Today's date
Schedule Impact: No
Description: Additional management services for the addition of the FF&E package into the scope of work. Directed by email from Kim Johnson.
Click Next Step.
On this tab, you can 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.
Fill out the SoV / WBS tab:
Click + Add WBS 1
Select the SoV item "Construction/FF&E Management" by using the dropdown.
Cost Code would automatically apply '03.10: Project Management Consultant'.
Input the following Change Order cost breakdown:
Click Mark as Pending Internal Approval at the top of the page to internally approve this change order before sending it to your client.
Click Approve.
Click Approve & Submit to Client for this exercise.
Record Client Approval. Use this step to document a client's sign-off that occurred outside of the platform.
Click "Record client approval": Select the button in the top-right corner of the Change Order page.
Enter Your Name: Type your name into the Approved by field.
Set the Date: Click the Date Approved field to select the date the client provided their sign-off. In this exercise, choose the date today.
Add Evidence: Note - Type a summary of the approval (e.g., "Approved via email by Jane Doe").
Attachments: Drag and drop the approval document (signed PDF or email) into the upload box.
Finalize: Click the Record Client Approval button at the bottom of the modal to update the Change Order status.
Click Execute and upload WILD WS CO to finalize this change order.
To create an export of your change order, click the export icon at the top of the page and view the pdf export.
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 Project Budget Reallocation
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.
In the left-hand navigator, click on the Project Budget.
Select the Budget Reallocations tab.
Click Add Budget Reallocation.
Enter the following information under Details:
Budget Reallocation Category: Contingency Reallocation
Reason for Reallocation: Design Change
Description: Reallocation of contingency funds to the MEP Engineer.
Click Next Step.
Enter the following information under Budget Line Items:
Click + Add Reallocation
Cost Code From: '09.10: Project Contingency'
Cost Code To: '02.50: MEP Engineer'
Change Amount: $14,000
Click Save as Pending.
Note that back on the Project Budget, the value is now reflected in Column D Pending Budget Reallocations.
Go back to Budget Reallocations and click into the budget reallocation you just created.
Click Approve.
a. Click Approve budget reallocation.
Now that the budget change is approved, the budget reallocation amount can now be seen moving $ from '09.10 Project Contingency' to 02.50- MEP Engineer in the Approved Budget Changes (Column B).
Take a look for yourself by clicking back to the 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.
Using INGENIOUS.BUILD’s Project Contracts and Contract Changes module significantly reduces the time and complexity involved in contract management.
With features like automated data population, a flexible approval system, and integrated budget tracking, you can easily manage contracts from the bidding stage through to execution.
Proceed to Module 5: Invoicing