Adding Contract from Project View

The System allows you to create a contract to document the project agreement directly from its view screen, based on an approved quotation within the project, or on the bid linked to the project if no quotation is selected.

Before you start, make sure of the following:

• This screen requires the Add Construction Contracts permission.
• Enable the Construction application by navigating to Settings from the main menu, then selecting Apps Manager.
• Only one contract can be created for each project.

Steps

1. From the main menu, click Construction.
2. Select Projects.
3. Click the Actions button next to the required project.
4. Select View.
5. Click the Add button, then select Contract from the menu.

Contract Information

This screen displays a set of fields for defining the contract’s basic information before proceeding to set up the Bill of Quantities:

• The Contract No. is generated automatically.
• Enter the Agreement Title (mandatory).
• The Project and Client fields are pre-filled (read-only).
• Select a Construction Quotation (optional) from the Approved quotations for this project only. Selecting it automatically populates the tender tree, contract dates, and duration.
• Enter the Duration or the Start Date and End Date (optional); either value is automatically calculated based on the others.
• The Contract Value is read-only and equals the total of the Bill of Quantities.
• Enter Retention (optional, percentage).
• Enter the Advance Payment Amount (optional, as a percentage of the contract value or a specific amount).
• Select the Recovery Plan (optional): percentage (default) or installments.
• Select Tax 1 and Tax 2 (optional), or Specify per work item.
• Enter the Description and required Attachments (optional).

Bill of Quantities

The Bill of Quantities is automatically populated according to the following priority: from the quotation if the contract is linked to one; otherwise, from the bid linked to the project if it already contains a tender tree.

The table consists of the main tender, sub-tender (up to 3 levels), and work item levels. The contract’s Bill of Quantities does not include a separate materials and services level, and no item can be added under a work item.

• For the main/sub-tender, enter its title only (unique among items at the same level); the Subtotal and Total are calculated automatically based on the totals of the work items and sub-items directly beneath it.
• For the work item, select it from the inventory, enter the Quantity and Unit, and enter the Sale Rate = (Subtotal ÷ Quantity). The Subtotal is calculated automatically (cost + total profit if it is linked to a cost sheet, or Sale Rate × Quantity otherwise), and the Total = Subtotal + tax amounts.

If a specific tax is selected in Tax 1 or Tax 2 under Contract Information, it is automatically populated for all work items and cannot be edited manually. However, Specify per work item allows you to select a different tax for each work item.

To add a main tender, click the Add button below the table. To add a sub-tender or work item under a specific line, click the + icon next to it (up to 3 sub-tender levels, with work items only under the last level; the icon does not appear at the work item level).

You can drag and drop any item in the tree under a different parent, as long as it remains at the same level.

Select multiple lines to perform bulk actions (Delete, Expand Group, Collapse Group).

After completing the form, click Save to save the contract as Issued, Save as Draft to save it as a draft, or Cancel to return to the project view screen.

System Behavior

• When a main tender or sub-tender is deleted, all its sub-items and associated work items are deleted with it.
• When a work item is deleted, only that line is deleted.
• If the Branches application is enabled, the contract is saved under the branch from which the user is logged in.

Validation Rules

• When a mandatory field is left empty, the text “Required” appears next to it.
• The title of each main tender or sub-tender must be unique among items at the same level. If it is duplicated, the following message appears: “Title should be unique”.
• The End Date must be after the Start Date. If this condition is not met, the following message appears: “End Date should be a date after Start Date”.
• The same tax cannot be selected in both Tax 1 and Tax 2.
• A contract cannot be created for a project that already has a contract. When attempted, the following message appears: “The project has an existing contract, you can’t add more than one contract for project!”
• When one or more lines are deleted, a confirmation dialog appears: “You have selected one or more lines for deletion. Deleting these lines will also remove any related sub-items beneath them such as sub-tenders, work items, and items depending on the type of each selected line, are you sure you want to delete the selected lines?”
• When the contract is successfully saved, the following message appears: “Contract Saved Successfully.”