Building Contracts can be quite complex, therefore, the Building Contract Document screen has content to manage a range of contractual aspects to ensure that vital information can be captured and maintained.

Benefits Of Using The Building Contract Document Screen

The screen contains information which can be used to track the contract document process, and also drive other processes during the construction phase.

A series of work flow dates can be used to track the progress of the contract document, including appointments linked to the diary, when a contract is estimated, prepared, sent to the client, received back and signed. Staff involved in the process can be allocated to their tasks and the contract details such as number and value can be recorded.

This screen stores vital contractual information which triggers several other processes within Framework ECM to occur.

Construction Claims Template

When applying a template to a job in the Construction Claims screen, the percentages set in the template refer to the Contract Value field to calculate the precise values of each claim stage.

For example; if the Contract Value is filled in on the Building Contract Document screen as $200,000, then when the Framework standard claims template is applied, the total for each claim will be created as;

#	Stage	Name	Total	% of Contract Value
1	Contract	Contract Deposit	$6,000	3
2	Base	Base Completion	$20,000	10
3	Frame	Frame Completion	$30,000	15
4	Lockup	Lockup Completion	$70,000	35
5	Fix	Fix Completion	$50,000	25
6	PC Inspection	Completion	$24,000	12

As the Claims Templates can be created to match the stages and percentages that are applied in the standard contract, the values need not be calculated manually, saving time and improving accuracy.

Contract Duration And The Anticipated Completion Date

The Anticipated Completion date is calculated from a range of sources, and can change throughout the construction phase, depending on the scope of the building contract.

The importance of the Anticipated Completion date can vary depending on the contract, but it can be used to identify where Liquidated Damages or other penalties can be applied if it is not met.

The first calculation can be done on the Building Contract Document screen, by selecting a Duration Start Method and an entering an Initial Duration. Once the selected method has a date, the Anticipated Completion date will be calculated.

Example

If the Duration Start Method is Site Start and the Initial Duration is set to 200 calendar days, when the Site Start date of 1/6/2019 is entered, the Anticipated Completion date will automatically calculate to 18/12/2019.

This Anticipated Completion date can be influenced by other factors:

Calendar Days vs Working Days

The duration can be set as Calendar Days or Working Days. Working Days are assumed to be Calendar Days less weekends. To be more accurate with Working Days, you may use the Construction Calendar as a reference. This will ensure that any days other than weekends that are set to non-possible, such as public holidays or office shutdown periods, are excluded from the Working Days count.

The use of the calendar for the calculation is set with Security Preference: Framework ECM > Production > -10022 Use Construction Calendar for Contract Working Days.

Days After Method

The number of days after the selected method for which duration starts.

Example

If the contract states that the duration is officially started 3 weeks after Ordering has been ordered, then;

Contract Duration Start Method is Ordering Ordered ; and
Days after Method is 21; and
The Ordering Ordered date is entered as 1/5/2009, then
The Duration Starts On will be calculated to 22/5/2009 (21 days after 1/5/09).

Tender Programme Impact

Tender Programme Impact is the sum of tender impact days that have been identified in the tender document.

If there are items selected in the tender that will cause an extension to the normal length of time allowed for the build, the Impact (additional duration) can be recorded in the Tender item and is automatically reflected in the Building Contract Document screen.

Additional Duration

Additional Duration can be the number of days the contract has been extended, in agreement with the client, due to circumstances or requirements that may not have been originally allowed for. This information is manually entered into the Additional Duration field, which is then reflected in the Revised Completion Date calculation.

Approved Delays

When Contract Delays are created, claimed and approved they create an extension to the contract by adding to the duration calculation, which is then reflected in the Revised Completion Date field.

Approved Delays refers to the number of delays that have been created. We recommend that they are then claimed and approved to fulfil contractual obligations.

Completion Dates

The Completion date can be expressed as either Original or Revised.

Original Completion

The original completion date refers to the date that it is expected that the contract will be completed. This date includes the durations as entered in the Contract Duration group of fields. When using Working Days to calculate contract duration, it is important to note that if the Framework Calendar is being maintained, public holidays and office shutdown periods are included in the Original Completion calculation.

Revised Completion

The revised completion date refers to the date the contract will be completed after the approved delays are calculated. The revised completion date only ever differs from the original completion date if delays are manually raised.

Reporting

As with most areas of Framework, collection of data in an accurate and consistent way allows for meaningful reporting. Standard and customised reports can be used to track the work flow, values and anticipated completions.

Context Sensitive Reports

The functionality is present to be able to print a report from within the Building Contract Document screen by clicking the Print or Print Preview icon on the Toolbar. Though there is no default report, it is possible to utilise this to have a client advice letter with the Revised Anticipated Completion date, or an internal advice. To discuss any specific reporting requirements, contact Insula Software.

Liquidated Damages Reporting

Within the standard set of Framework reports are a group that deal specifically with Liquidated Damages, which refers to the penalties allowed for in the contract for failure to meet the Anticipated Completion date. By correctly using the components of the anticipated completion calculations, the Liquidated Damages reports can be an invaluable risk management tool. As well as jobs that are already past their completion dates, it is possible to identify jobs that are approaching their completion dates, using criteria such as 30 days from Liquidate Damages. This early identification allows for intervention, such as reallocation of resources or an evaluation of process, that could reduce the likelihood of the job going into overrun.

To discuss whether the standard reports require alteration for specific needs, contact Insula Software.

Ongoing Management

As in all areas of Framework, consistent and accurate data and process maintenance allows for consistent reporting and use of a reliable Revised Anticipated Completion date in other procedures such as client correspondence and forecasting approaching penalties during construction.

It is recommended that adding the relevant information to the Building Contract Document screen becomes part of the standard contract management process in the pre-site phase.

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