Contract - Settings

• CCIP Active:Select this check box if a Contractor Controlled Insurance Program (CCIP) is in effect.
• Max Unbonded Contract Amt:Enter the maximum contract amount that can be awarded without a bond. This is useful during the bid and buyout stages of the workspace.  
• OCIP Active:Select this check box to indicate whether an Owner Controlled Insurance Program is in effect.
• Receive Notification For Failed Invoice:Select this check box to have Proliance notify the contract administrator when it receives an invalid notice against the contract.
• Release Invoices for Payment as they are Approved:Select this check box to have Proliance attempt to release an invoice for payment at the time the invoice is approved. If the release is successful, the invoice's resulting state is Released for Payment. If the release is unsuccessful, the invoice's state is Approved. Should this happen, you will need to correct the condition preventing the invoice from being released, then manually release the invoice for payment.
  
  Clear this check box if you prefer to manually release your approved invoices.
  
  Note: After an invoice is released for payment, you no longer control the Payment Status field of the invoice. Proliance will set the status based on the invoice's Payments page. For more information about this field, see the Details section in "Invoice - Main".
• Show Advanced Dates:Select this check box to show the Completion Dates and Other Dates on the Main page of the contract.
• Show Unit Price Information:

  This setting is used to show or hide the following unit price information on the Schedule of Values:

  • Quantity
  • Unit Code
  • UOM
  • Unit Price
  • Pivot Type
  • Drawdown Type

  You may want to hide unit price information if it is of a sensitive nature. The show/hide takes place when the contract is saved.

  The show/hide state in a contract automatically applies to any change orders created for this contract. However, invoices associated with the contract can have their own show/hide unit price information setting.

  Note: Proliance continues to process all unit price-related business rules even if you choose to hide this information. This ensures that all information is current if you choose to display unit price information later on.

  The Show Unit Price Information setting is unavailable if BCM integration is disabled.

• Use Stored Materials:Select this check box to enable line item columns related to Stored Material on invoices against the contract.

The Auto-Create Allocations for New Line Items section is available only if BCM integration has not been disabled for the contract or workspace

Every time you add a line item to the Schedule of Values, Proliance automatically allocates it to one or more cost accounts in the Allocated BCM Child Rows.

You can control the information that appears in these automatically added allocations. Each row in this section represents a cost account allocation. There must be at least one row. You can add or delete rows.

• To add a new row, click Add and then complete the information below.
• To remove a row, select its check box and then click Remove.
• To re-size, sort or customize the list, see "Working with Line Item Lists".

In each row, you can specify the following information:

• ACR Column: Select the ACR column in which the allocation's value will appear by default. You can select another ACR column when you edit the allocation on the Schedule of Values. The ACR column is required.
• Advanced Code: This is the advance code associated with the cost account. This code cannot be edited here. For more information, see the Advanced Code section in "Cost Account - Main".
• Cost Account: Click the Magnifying Glass icon to select the cost account for the allocation.

• Distribute Percentage: Enter a percentage value that shows how much of the controlling line item is allocated to a cost account through this allocation. The total of all Distribute Percentage values must equal 100. This percentage is required.
• Item Description: Optionally type a description for the automatically-create allocation.
• Item Note: Optionally type a note for the automatically-create allocation. This note can provide some additional information above and beyond the description.
• Pivot Type:

  Select which value should remain constant when Proliance recalculates the formula:

  Amount = Quantity * Unit Price

  This constant value, known as the pivot type, is used as the default when Proliance creates Allocated BCM child rows for the allocation. You can change the pivot type when the child rows are created.

  The Pivot Type setting is available only when Show Unit Price Information has been enabled under General Settings.

• Reporting Code 1-3: Optionally, click the Magnifying Glass icon to select up to three reporting codes that will appear by default for the allocation. These codes help you categorize the allocation and provide additional means to group, sort and filter the allocations in Proliance. This is especially useful when working with the Anticipated Cost Report (ACR).
  
  If you consistently use reporting codes for all your cost account allocations, you will be able to use the ACR to view the entire workspace, summarized by the items and levels within the reporting codes. This is similar to the power offered by the advanced codes in cost accounts. For more information, see "Configuring Cost Account Advanced Codes".  
• Unit Code:

  Click the Magnifying Glass icon to select the unit code for the allocation. Proliance will populate the remaining unit price information (UOM, Unit Price) based on the unit code selected.

  The Unit Code setting is available only when Show Unit Price Information has been enabled under General Settings.

The Drawdowns and ACR Column Settings section is available only if BCM integration has not been disabled for the contract or workspace.

• Automatically Create Drawdowns: When you add a new line item to the document, Proliance automatically allocates it to one or more new cost account allocations. Select this check box to indicate that Proliance should also create a linked drawdown for each allocation. This setting applies only to pre-commit contracts.
• Drawdown Preference Select Do Not Allow Overdraw to prevent the draw down from moving below 0 when the line item is an amount greater than what's available in the cost account.
  
  Select Allow Overdraw when you want the draw down to be the same as the full required amount; if the amount is less than zero as a result, this is referred to as "Overdraw".
  
  Note: You can alternate between the two preferences as needed depending on your security permissions; the total amounts will immediately reflect the rules of the new setting.
• Default Cost ACR Column, Default Budget ACR Column:Select the ACR column that Proliance should normally display to people with the appropriate security permissions when the state of the document changes. The Default Cost ACR Column setting is on expense documents, while the Default Budget Column setting is on revenue documents.
• Subtype State ACR Columns: Click the 'View Subtype State Configuration' link to view the currently active standard and user-defined states for this pre-commit contract document subtype, the default order in which these states will occur (sort order), and the Budget/Cost ACR column that will be updated when this document enters the given state. This link is available only after you save the document for the first time.

For each of the remaining drop-down lists in this section, select the ACR column that Proliance should set for this document's allocations when the document enters the indicated state.

Example

Select the appropriate ACR column for each for each of the following:

• Draft
• Pending
• Pending Acceptance
• Pending Approval
• Approved
• Closed
• Cancelled

For each setting, you have three options:

a. Leave as is and use the default ACR columns as set from your Local Admin.

b. Override the default ACR column by selecting a different one. Note that this override only applies to the existing contracts and not to new or existing ones.

c. Select Use Subtype Configuration to have this ACR column determined from the Local Admin's 'Subtype State Configuration' setting. This setting in the Local Admin only defines the ACR column for new contracts and existing ones that selected Use Subtype Configuration.

The 'No Change' option instructs Proliance to use the same ACR column from the previous state.

• Contract Currency:This is the currency that will be used when you create a new contract. The workspace currency is used as the default.
  
  Note: You can click the Magnifying Glass icon to change the contract currency only for new contracts that have not yet been saved.  
• Currency Precision:Enter the number of places after the decimal that are used for calculations involving currency values in this contract and any of its related documents. For more information, see "Setting Contract Currency Precision".
• Default Tax Rule:Click the Magnifying Glass icon to select the tax rule that applies by default to line items in all documents related to the selected contract. These tax rules are chosen from the Tax Rule register.

• Billing Rule: Select the billing rule that should apply to this contract. You cannot change the billing rule once the contract is approved.
• Invoicing Option:

  Specify how Proliance handles invoicing against this contract. Note that even if you allow invoicing, Proliance permits invoices to created only once the contract moves out of the Draft state.

  • Limit By Fixed Amount: The total amount of invoices cannot exceed the Limit Invoice Amount.
  • Limit By Percentage: The total amount of invoices cannot exceed the Limit Invoice Amount.
  • No Invoicing Allowed: Proliance does not permit invoices against the contract.
  • No Invoicing Limit: The total amount of invoices is unrestricted except by the billing rules that apply to the contract.
• Limit Invoice Amount:

  Enter the amount that the total of all invoices against the contract cannot exceed. This setting only appears if the Invoicing Option is either Limit By Fixed Amount or Limit By Percentage.

  This limit is defined in terms of the contract currency. The Invoicing Limit must be less than or equal to the contract's Total Scheduled Amount, unless the contract is using variable total billing rules. This limit only applies when the state of the contract is Pending, Pending Acceptance, or Pending Approval.

• Invoice Up to Pct: The percentage of the total contract value that the total of all invoices against the contract cannot exceed. Proliance automatically fills in this amount if you have already specified a Limit Invoice Amount.
• Days Payment Due After Invoice: Enter the number of days before the invoiced amount is due.
• Payments Allowed:Select this check box to allow participants to release invoices against the contract for payment. Note that this does not actually release any invoices for payment, it just makes the action possible.
  Note:
  - You can allow payments only for contracts that are not in the Draft state.
  - Administrators can not set the default value for this field from the Local Admin.
  - This field is not available in the Draft, Canceled and Closed states.
• Pay When Paid Select this check box to indicate that payment for this contract can occur only when you have been paid. For this setting to work, you must create a hold that includes all "paid when paid" contracts with a specified cost period. This hold will block the release of a payment for an invoice. When you have been paid (in other words, have received payment for corresponding invoice against a revenue contract), you can release the hold and permit the payment to go through.
• Roll Stored Materials:

  Select this check box to have Proliance automatically make the To Date Progress Stored Amt zero (0) for any invoice subsequent to the first invoice. Proliance transfers the This Invoice Stored Amt to the This Invoice General Sub Material Amt. The assumption is that all of the stored material from the previous invoice Previous Stored Amt was installed in the meantime.

  Example

  For example, you created Invoice #1 with one line item. The To Date Progress Stored Amt on the line item was $10. Now, you are creating Invoice #2. 

  You elected to Roll Stored Materials, so:

  • The To Date Progress Stored Amt for the line item on the new invoice is now $0
  • The This Invoice General Sub Material Amt is $10
  • The This Invoice Stored Amt is $0.

• Is Using Retainage: Select this check box to use retainage for the entire contract. If this check box is not selected, the retainage terms and conditions are not visible in the line item columns. However, Proliance continues to perform retainage calculations with the contract. This makes it easy for you to turn retainage on again later.
• Use Summary Retainage: Select this check box to use Summary Retainage. Clear this check box to use Line Item Retainage. For more information, see "Managing Retainage".
• Summary Retainage:

  Complete the following settings when you want to use basic summary retainage.

  • Stored Material: Enter the percentage of a line item's stored material that Proliance holds back from the This Invoice Total Payable Amt. Stored material is represented by the This Invoice Stored Amt column.
  • General Work Percentage: Enter the percentage of a line item's general work that Proliance holds back from the This Invoice Total Payable Amt. General work is represented by the This Invoice Total Amt column.

  Additionally, specify the following settings if you want to define variable retainage rules for summary retainage:

  • Up to % of Base: Enter a percentage value. The General Work Percentage retainage rule applies until progress against the Original Contract Value reaches this percentage. Above this percentage, the Percent on Remainder retainage rule applies. If this percentage is 100%, the Percent on Remainder retainage rule does not apply.
  • Percent on Remainder: Enter the percentage of general work that Proliance holds back from the This Invoice Total Payable Amt after progress against the Approved Base Contract Amount surpasses the Up to % of Base percentage.

• Line Item Retainage:
  • General Work: Enter the default retainage percentage for new line items on that contract.
  • Stored Material: Enter the default retainage percentage for new line items on that contract.

This section lists the markup codes that apply to the contract. A markup code defines the rate of markup, in terms of percent, that is added to a value.

• To add a markup code, click Add Line and then click the Magnifying Glass icon to select the code to add.
• To remove a markup code, select the check box next to the line to remove and then click Remove Line(s).

This section lists the discounts that apply to the contract. To add a discount, click Add Line and then complete the following. To remove a discount, select the check box next to the line to remove and then click Remove Line(s).  

• Discount Name: Type a name for the discount.
• Percentage: Optionally enter the portion of the invoiced amount that will be discounted if the conditions are met. If you do not specify a percentage, then you must provide an Absolute Amount.
• Absolute Amount: Optionally enter the maximum possible discount, in terms of the contract currency. If you do not specify an absolute amount, then you must provide a Percentage.
• Condition Payment Term: Enter the number of days after the invoice date during which the discount is valid. If payment is still outstanding at the end of this period, then the discount is no longer available.

• Standard Clauses: Type or paste copies of standard clause text from any contract templates that you normally use.

• Back Charge Rules: Type or paste the rules for dealing with the situation in which a contractor is responsible for the costs of an action or failure to perform an action.
• Payment Terms: Type or paste an explanation of how payments work for this contract.