Contract Administration module settings

General settings

• Do not allow Prime Contract Actual Dates to be modified after contract has been approved or locked.

  If this option is selected, the actual dates of prime contracts cannot be modified after the prime contract has been approved or locked.

• Do not allow Prime Contracts or Change Orders to be modified after Prime Invoices have been created.

  It's recommended to keep this option selected, which is the default setting.

  It's essential to implement control measures to prevent data discrepancies, particularly with Fixed Lump Sum prime contracts. After the original contract items (schedule of values) and change orders (COs) are imported into a prime invoice, their values must not be altered. This is especially important if the customer has already approved and paid the transaction.

  Sage Construction Management offers this option to override this functionality and allow modifications to prime contracts or COs. However, this setting must only be temporarily disabled. Leaving it permanently unchecked can lead to overbilling or underbilling, which might cause significant financial and reporting issues.

• Include Pending Transactions in Previous Calculations

  Select this option to include amounts from previous prime invoices that are in Pending status in the previous total amounts. This setting applies only to invoices based on Fixed Lump Sum and Unit Price prime contracts. It does not apply to Cost Plus contracts with or without a guaranteed minimum price (GMP).

• Prime Contract Cost Plus Invoice - Import Sub Invoice Gross Total

  If the Prime Contract Cost Plus Invoice - Import Sub Invoice Gross Total option is selected, retainage will be included when importing sub invoices into a Cost Plus prime contract invoice. This means that the gross amount of the sub invoice will be used.

  Subcontract invoice example:

  • Subcontract Invoice Subtotal = $100,000

  • Subcontract Invoice Retainage (10%) = $100,000 x 0.10 = $10,000

  • Subcontract Invoice Subtotal Less Retainage = $100,000 - $10,000 = $90,000

  • $100,000 will be import from the sub invoice into the prime invoice.

  If the Prime Contract Cost Plus Invoice - Import Sub Invoice Gross Total option is deselected, retainage will be excluded when importing sub invoices into a Cost Plus prime contract invoice. This means that the net amount of the sub invoice will be used.

  Subcontract invoice example:

  • Subcontract Invoice Subtotal = $100,000

  • Subcontract Invoice Retainage (10%) = $100,000 x 0.10 = $10,000

  • Subcontract Invoice Subtotal Less Retainage = $100,000 - $10,000 = $90,000

  • $90,000 will be import from the sub invoice into the prime invoice.

Prime contract Cost Plus invoice item import formats

Expenses are typically imported into Cost Plus prime contract invoices rather than entered manually. The invoice details table for this feature includes the Reference and Item Description fields, which can be automatically formatted based on the import settings. The Reference field can be used for grouping in invoice reports. To ensure uniformity across all record types, it is recommended to apply a consistent import setting, such as using the date or a specific feature. Any changes made to these settings will only affect new transactions and will not impact existing Prime Invoices.

Expense transaction import options:

1. Procurement Module:
   • Bills
   • Sub Invoices
2. Correspondence Module:
   • Work Orders
3. Time and Expenses Module:
   • Labor Timecards
   • Equipment Timecards
   • Misc. Employee Expenses

CPR / COs initiated by options

Learn more here.