Construction Contract Statuses and How to Change Them

A Construction contract goes through several statuses from the time you create it until you close it, and each status determines what you can do with the contract: edit it, delete it, and add Payment Certificates. This guide explains the statuses and how to move between them using the buttons in the contract header, including Close.

Contract Statuses

Status	Meaning
Draft	A contract that is saved provisionally and has a temporary number.
Issued	A completed contract that is not yet activated. This is the default status when you save.
Active	A contract that is in progress; you can add Payment Certificates to it.
Closed	A contract that is completed and delivered.
Canceled	A contract that was terminated before it was completed.

Moving Between Statuses

Current Status	Buttons in the Contract Header	New Status
Draft	Issue	Issued
Issued	Activate / Set as Draft	Active / Draft
Active	Close / Cancel (in the action bar)	Closed / Canceled
Closed / Canceled	Reactivate	Active

Each action requires confirmation in the Change Status window, with the Yes and No buttons.

Activate a Contract

1. Open the issued contract and click Activate.
2. A message appears: Are you sure you want to activate contract #(number)? Once activated, it cannot be returned to draft.
3. Click Yes; the message Contract #(number) was activated successfully appears.

• The contract must be linked to a project.
• After the first activation, the contract’s financial data is locked (currency, quotation, performance guarantee, advance payment, recovery plan, and taxes).
• Cost Centers are created for the contract under the project according to the cost tracking level, and the Work Items tab appears.
• You cannot delete a contract after it is activated.

Close a Contract

1. Open the active contract and click Close.
2. A message appears: Are you sure you want to close contract #(number)? This will mark the contract as delivered and completed.
3. Click Yes; the status changes to Closed.

• The project status changes to Completed if the completion percentage of the work items is 100% or more.
• You cannot edit or delete a closed contract, or add progress billings to it.

Reactivate a Contract

From a closed or canceled contract, click Reactivate and then Yes, and the contract returns to Active. The project status does not automatically revert.

Issue and Set as Draft

• Issue: Changes the draft to Issued, and the contract receives a number from the Contracts numbering sequence.
• Set as Draft: Returns the issued contract to a draft with a temporary number. You cannot return an active contract to a draft.

For cancellation, see the guide on canceling a Construction contract.

What Each Status Allows

Status	Edit	Delete	Progress Billings and Invoices	Advance Payments
Draft / Issued	Yes	Yes	No	Yes
Active	Yes (except financial data)	No	Yes	Yes
Closed / Canceled	No	No	No	Yes

Error Messages and Solutions

Message That Appears	Cause	Solution
Contract #(number) cannot be activated because it is not linked to a project.	The contract has no project.	Link the contract to a project from Edit.
Failed to update the status	The status could not be changed, usually because you don’t have the required permission.	Check your permissions.
Contract #(number) cannot be updated because it is closed / canceled	You tried to edit a closed or canceled contract.	Reactivate it.

Frequently Asked Questions

Can an active contract be returned to draft?

No. After activation, you can only close or cancel it.

What is the difference between closing and canceling?

Closing is for a contract that is completed and delivered, while canceling ends a contract before it is completed. Both can be reversed by reactivating the contract.

Why doesn’t the Close button appear?

Either the contract is not active, or you don’t have the Approve and Reject Construction Contracts permission along with the permission to edit contracts.

Does closing a contract create journal entries?

No. Changing the contract status does not create accounting entries.