Maintaining Contract Adjustments for a Payment Estimate

A contract adjustment reduces financial risk for agencies and contractors where subsurface conditions, character of the work, or other terms differ from those indicated in the contract.

An agency can set up system-generated contract adjustments and enable users to create user-generated contract adjustments. You cannot edit or remove a system-generated contract adjustment. Instead, you can manually create another contract adjustment on the same, or a later, payment estimate to zero out the previous adjustment. You can add, edit, or remove a user-generated contract adjustment when the payment estimate is in Draft status.

The contract adjustment types are:

System-generated: Disincentive, Incentive, Liquidated Damage, Retainage. You can directly control the amounts related to retainage on the Retainage tab on the Contract Administration Summary. See Maintaining Contract Retainage.
User-generated: Disincentive, Incentive, Liquidated Damage, Other Contract Adjustment. User-generated contract adjustments affect only dollars paid on a payment estimate.

Click the Contract Adjustments tab on the Contract Payment Estimate Summary to review a list of payment estimate adjustments at the contract level.

To add a contract adjustment to the payment estimate, click the New button in the User-Generated Contract Adjustments section. Enter information as needed. Initially, the system distributes the adjustment amount to the contract projects proportionally. If needed, you can adjust the distribution.

You can view or change information in these fields:

Note: For user-generated adjustments:

You can specify additional distribution at the category level. However, the system does not integrate category-level values with project-level values, or track them other than to store them for later viewing. You can specify additional distribution at the category level. However, the system does not integrate category-level values with project-level values, or track them other than to store them for later viewing.

When you associate an adjustment with a contract time that has established rates and cap amounts, the system adjusts the applied amounts on the contract time when the payment estimate is approved.

Click in a field to add, change, or delete information as needed. Click the Save button when you are finished.

The system automatically recalculates the payment estimate and retainage as determined by the contract adjustment type.

The row Actions menu has the following functions:

Actions

Select Contract Adjustment Distribution to view or maintain the distribution of the contract adjustment to projects or categories. See Distributing Contract Adjustments.

Select Delete to delete a record. Select the Undo button to reverse the delete action. Click the Save button.

Select Duplicate Row to copy a record. Click the Save button.

Select Exclude from Search Results to exclude a record from your search.

Select Insert Row on the row above where you want a new row to display. The system adds a new row directly below the selected row. Click the Save button.

Select Open Contract Time to view contract time associated with the contract adjustment on the Contract Time Summary. See Maintaining a Contract Time Record - Available Time.

Views

Select Attachments to manage attachments. The Attachments link includes the number of files attached to this record. See Working with Attachments.

Select Links to manage links. See Working with Links.

Select Tracked Issues to manage tracked issues. See Maintaining Tracked Issue Information.