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.
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.
The system automatically recalculates the payment estimate and retainage as determined by the contract adjustment type.
The row Actions menu has the following functions:
Select Contract Adjustment Distribution to view or maintain the distribution of the contract adjustment to projects or categories. See Distributing Contract Adjustments.
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.
Maintaining a Contract Payment Estimate