Background/Overview

Within the INGENIOUS.BUILD platform you can create a Vendor Contract one of two ways: either from a bid package or from a manual workflow within the Project Contracts module. In this article, we will be guiding you through how to create a manual contract. The Contract feature includes details regarding the project's dollar value, client details, quoted items, retention rules, schedule of values, contract creation timeline, files associated with the project and a feature for discussion amongst stakeholders.

Prerequisites

For the Owner Rep (RepIO) workspace type, only the following account types can create project contracts: Accounting, Administrator, Project Executive and Sales Executives. For other workspace types, any employees with Admin, Project Executive or Accounting account types can create vendor contracts. See Account Types for instructions on managing account types.   

Process

  1. Navigate to the project you wish to add the contract to by clicking Projects tab on the lefthand navigation > Projects > select the project

  2. Select Project Contracts module from the dropdown menu

  3. Click Add New Contract on the top right corner

4. You will be prompted to enter in basic contract details

  • Contract Name: this is used to describe the scope of work and / or the vendor's company name

  • Contract Type: specify which workspace type you expect the vendor to have

  • Vendor Type: specify whether you expect the vendor to be on-system, or off-system. This will affect the selection options for Vendor Contacts.

  • Vendor Contacts: add or invite the vendor, or select from the drop-down menu

Enter Details/ Settings of Contract

Enter Basic Details regarding the contract.

  • My Responsible Project Manager: assign an internal employee to be the responsible PM for this contract

  • Contract ID: assign this ID as a unique identifier to identify this contract. Consult with your company leadership on Contract ID specifications/standards. The system will auto generate a number for this that you can overwrite.

  • Contract Value: enter the total $ value of the contract. This must match the Quoted Items once those are entered on the next tab.

  • Initiation Date / Effective Date: these are optional, but can be used to track when services were initiated and when contract is effective by.

You'll also notice that there is an option to issue a Letter of Intent (LOI). LOIs are useful for providing the vendor with the direction of intent for a contract, without the need for immediate formal contract execution. This includes instructions on which party will provide the first draft of the contract and when the vendor should commence with their services. For more information on this, please click here.

Add Quoted Items / SoV

Quoted Items are used to describe the phases of work performed on the project and tie the contract values into the budget ACR. This will also eventually be the Schedule of Values used for billing purposes throughout the project.

If your contract is on-system, you can request the SoV from your client, or fill it out on your own. If your contract is off-system, then you will need to fill it out on your own.

If you have a template of Quoted Items, you can click Load Quoted Items. This can be set up by your Workspace Administrator. Read more here.

  1. Adjust the settings in the top bar:

  • Display Units: units allow you to calculate costs based on a specified quantity multiplied by a Unit of Measure to come up with the scheduled value

  • Require SoV Approval: select this to require the final SoV to be approved internally by a Project Executive or higher

  • Require Approval to Update SoV: select this to require the project team to have an approver unlock the SoV at a later time for updates

  • Require Cost Type: select this if you would like to match phases/tasks with a cost type (Labor, Equipment, Material, Commitment ...etc.). This is required if you are wanting to add exceptions to your Retention Rules.

  • Enable Cost Codes: selecting this will allow you to pair your company's internal cost codes with a phase/task of the SoV. The 'My Cost Code' column pulls cost codes entered at the company settings > cost codes configuration

2. Enter the quoted item description, then on the drop-down to the left, select the cost code for this item. If all the quoted items on this list will be tied to the same cost code, you can click Apply to all

3. Enter the quoted item value

4. Click Add Quoted Item to add additional quoted items, or Add Phase / + Task to break the cost down further

5. At the very bottom, you will see that the SoV Totals, Quoted Item Totals, and Contract Value must all match

6. If you have any alternates within your contract, you can add them below using the same steps outlined from 1-3 above.

Note: you can pause the contract creation process by clicking Actions > Save. This will allow you to come back and finish editing the contract at a later time.

Add Retention Rules

Enter the contract's retention rules if applicable.

Next Steps

Executing a Project Contract

Create a Vendor Change Order

See Also

How to Create a New Bid Package

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