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Managing and modifying client contracts is a vital aspect of project management for GCs and Clients. This guide outlines the process for updating client contracts in different scenarios, providing clear steps and considerations.

Updating Client Contracts with status ‘Active’

When it becomes necessary to make changes to a client contract that is already in the 'Active' state, follow these steps:

Unlock the Contract:

• Locate the client contract that requires updates.

• Click the 'Unlock Contract' button associated with the contract.

• Users will be asked for a confirmation and the contract will transition to the 'Active Unlocked' state, making it editable.

Unlock the Billing Schedule:

• To make changes to the Billing Schedule, click the 'Unlock Billing Schedule' button.

• This action allows for modifications to the budget line items and Schedule of Values (SOV) calculations.

• Note: SOV items with a payment status of 'Paid' cannot be altered. The system safeguards against unintended changes to paid items.

• Review and update the contract, budget line items, and SOV calculations as needed.

• If the modifications disturb SOV calculations, the system will automatically recompute the percentages and related amounts.

• After all the changes have been made and reviewed, there are two options available:

  • Lock & Post: This option finalizes the contract with the modifications, updating it to the 'Active' state.

  • Route for Approval: If additional approval is required for the changes, select this option to initiate the approval process.

Updating Client Contracts with status ‘Active - Need SOV Update’

In scenarios where new work items have been added to a client contract through a change event, the contract will have a status of 'Active - Need SOV Update,' and a 'C' icon will be displayed next to the contract. This indicates that new budget items have been added, and the SOV values need to be updated accordingly. Here's how to handle this situation:

Unlock the Contract:

• Locate the client contract with the 'Active - Need SOV Update' status and the 'C' icon.

• Click the 'Unlock Contract' button for this contract.

• The status of the contract will change to 'Active Unlocked - Need SOV Update,' indicating that the contract is now editable.

Unlock the Billing Schedule:

• To make changes to the Billing Schedule and update the SOV to accommodate the new budget items, click the 'Unlock Billing Schedule' button.

Note: SOV items with a payment status of 'Paid' cannot be altered.

• Review and update the contract, budget line items, and SOV calculations to include the new work items.

• If the changes affect SOV calculations, the system will recalculate the percentages and related amounts automatically.

• After completing all the updates, there are two choices available:

  • Lock & Post: This option finalizes the contract with the modifications, updates it to the 'Active' state and triggers notifications to the other party

  • Route for Approval: If the changes require additional approval, select this option to initiate the approval process and notify the other party

By following these steps, GC or client can efficiently update and manage client contracts, whether they are making general updates to an existing contract or incorporating new work items through a change event. This process ensures that contracts remain accurate and up-to-date, helping maintain project integrity and client satisfaction.