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Contract Management

Revised October 24, 2008

Description

There are two types of contracts in the BuildTopia application: Turnkey and Unit-of-Measure.   Turnkey contracts are lump sum where the costs are based on a scope of work for a specific plan in a project.  Unit of Measure contracts are the unit costs of the activities based on the scope of work of the activity.  The actual cost per plan is calculated by multiplying the unit cost times the quantities included on plans and options.    

• Turnkey Contract
• Unit of Measure Contract

Notes

• The Bidding and Contracting module supports up to nine trade partners per trade with finalized contracts. This allows only one contract revision per trade partner per trade at a time. Additionally, it allows only two finalized contracts per trade partner per trade at a time. One of the two finalize contracts must have an expiration date set.
• The expiration date on the first active primary contract and the effective date on the second active primary date cannot overlap.
• The expiration date is only mandatory if one contract is finalized.
• Five days before the expiration of a contract, a warning message is sent to all Bidding and Contracting users.
• One day before the expiration of a contract, a second warning message is sent.
• An additional warning is sent before the last finalized contract for a trade partner expires.
• Once a second contract is finalized, the effective date of the second contract becomes the expiration date of the old contract.
• New contracts are open-ended, without an expiration date. The expiration date can be added at any time.
• When a contract is finalized, the user will have the option to update the template budgets on the plan, based on the final contract. This is for simplicity of data maintenance. This is a user setting and can be turned off or on.