This article delves into the process of automated contract creation when dealing with Change Events. Specifically, it explores the scenario in which a Change Event is approved and the system automatically generates new Client and Vendor Contracts.


Change Event Submission

  • The General Contractor (GC) initiates a Change Event, highlighting modifications or adjustments needed in the project's scope

  • Upon completing the Change Event details, the GC is presented with two options during submission:
    a. System Creates New Contracts: In this scenario, the system will automatically generate new Client and Vendor Contracts based on the revised Change Event Amount
    b. Manual Contract Updates: Alternatively, the GC can opt to manually update existing Contracts, thus retaining the current contractual framework

  • A Change Event notification is sent to the client for review. The client carefully evaluates the Change Event and, if satisfied, approves it


Auto-Creation of New Vendor Contracts

  • Following the client's approval, a new Vendor Contract is automatically generated in the name of the Change Event. The Contract Amount for this Vendor Contract corresponds to the approved Change Event Amount

  • The new Vendor Contract exclusively contains Work Items approved as part of the Change Event. This ensures that the project's scope aligns with the changes defined in the Change Event

  • The newly created Vendor Contract is placed in "DRAFT" status. It awaits further actions, including defining the Schedule of Values (SOV) and subsequent approvals


Auto-Creation of New Client Contracts

  • Upon the client's approval, a new Client Contract is automatically generated under the name of the Change Event. The Contract Amount mirrors the approved Change Event Amount

  • The new Client Contract encompasses only those Work Items that were greenlit as part of the Change Event (marked with the 'C' icon)

  • Draft Status: Like the Vendor Contract, the newly formed Client Contract is placed in "DRAFT." This phase entails defining the Billing Schedule and obtaining the necessary approvals


Considerations

  • Budget Line Items: One important consideration is the "Add Budget Line Item" button. In the automated contract creation scenarios, this button is disabled. The new Contracts are automatically populated with the budget line items associated with the approved Change Event.


Automated contract creation simplifies the management of Change Events, ensuring that newly introduced elements are integrated effectively into the project's contractual framework. This approach streamlines the process of defining new Client and Vendor Contracts, with a focus on the approved Change Event.




Last Updated: Dec-11-23