Set up Your Project Contract

Modified on Tue, 16 Sep at 10:19 PM

Contractors can set up their commitment contract within Linarc to establish a clear financial and scope baseline for the project.

Define contract details along with a detailed cost breakdown of all work items covered by the scope.
Build the cost breakdown as line items that comprehensively cover deliverables, work packages, tasks, and activities.
Link each line item to standardized cost code from the company’s task code list for consistency and control.
Once finalized, the contract is locked to serve as the project baseline.
Revisions and adjustments can only be made through approved change orders, ensuring proper tracking and accountability.

To set up your project contract

Ensure you are in the 'Commitment Contract' screen of the 'Finance' module. If not:

Open the management console of the project.
Click the app launcher icon in the top-right and select "Finance"
Click 'Contract' on top and select 'Commitment' on the left

The 'Commitment Contract' screen opens:

Enter the following details before setting up your contract:

Title – A short, descriptive name for the contract. This helps identify the contract within the project records.
Start Date – The planned date when the contracted work or services will begin. This marks the commencement of the contractor’s obligations under the agreement.
End Date – The planned completion date for the contracted work or services. This defines the contractual deadline for delivering all scope items.
Executed Date – The date when the contract is formally signed and becomes legally binding between the contractor and the contracting party (typically the general contractor or project owner).
Retainage Percentage – The percentage of each payment that will be withheld by the entity responsible for paying your invoices (typically the general contractor or project owner) until satisfactory completion of the project or contract scope.
Payment Terms – The agreed-upon schedule and conditions for payment (for example, “payment is due within Net 30 days or Net 15 days from invoice submission”).
'Net 15' means payment is due 15 days from the invoice date
'Net 30' means payment is due within 30 days from the invoice date
Payment Terms – The agreed-upon schedule and conditions for payment (for example, “ payment is made within Net 30 days or Net 15 days from invoice submission). This section defines how and when the contractor will be paid.
Click the 'Save' button at the top right to continue.
Click the 'Upload' button to open the 'Upload commitment contract' screen:

You can set up your contract in two ways:

Manually create your contract
Import your contract from an Excel file

Manually create your contract

Click 'Create'

Add your contract line items one by one
Each line in the contract should contain one task entry.

Enter the values for the tasks under the following column headers.

Task code- The cost code of the line item. Typically, this is the standard code for the task or deliverable as per the CSI Master Format. If your company uses a custom coding system, enter the code as per your company's task code format. Contact your administrator for more details. Click inside the cell and select the code from the drop-down

Double-click inside a cell to enter the following values. Enter the monetary values in the currency specified in your billing setup.

Name - The label of the work item, like the deliverable, work package, task, or activity
Quantity - The planned amount of work to be materialized
Unit - The unit by which the amount of work done is measured
Hrs - The effort hours required for completion of the task in manhours
Total cost - Auto-calculated from the values in the row
Labor - The manual labor cost estimated for the job
Equipment - The estimate of cost incurred by the use of equipment and machinery for the work
Material - Planned cost for the materials used for the work
Overhead - Overhead and operational costs that the company bears, relevant to the task
Click '+Add Row' to add more line items
Click the 'Delete' button to remove the row
Click 'Save' to save your draft.
You can submit your contract after review and corrections/amendments, if any. Click here to know more.

Import your contract from an Excel file

Using an Excel file to upload your cost breakdown involves two steps:

Step 1 - Create the contract
Step 2 - Upload Contract

Create the contract

The template file with the required fields is available for download from the 'Contract' interface.

Click 'Download' in the 'Commitment Contract' screen to obtain a blank Excel file containing the required field headers.
Create your contract in the Excel file by entering the values for each line item.

Requirements of the contract file

The Excel file should contain an exhaustive list of tasks for the completion of the work covered by the contract scope.
Each line item in the file should contain one task entry.

Enter the values for the line items under the following column headers.

Task Code - The code representing the work item as per the cost code list at your company level
Task Name - The label of the work item/task
Quantity - The total amount of work done
UOM - Units by which the amount of work done is measured
Unit Value - The cost associated with performing one unit of work, based on the defined unit of measure.
Labor - The monetary value of the cost allotted for the wages for manual labor
Equipment - The monetary value of the cost allocated for the use of equipment and machinery for the work
Material - The monetary value of the cost allotted for the materials used for the work
Overhead - Operation costs that the company bears

Save the Excel file with an appropriate name.

Upload your Contract

Open the 'Commitment contract' screen as explained above
Click inside 'Browse' and navigate to the file you want to upload
- Alternatively, drag and drop the file into the box

The estimate adds as a draft.

If there are any errors, you can edit the details in the same interface
Click 'Add Row' to add new line items to your contract
Click the 'Save' at the top right to submit your contract
Your entries are validated and saved

You can edit the estimate line items, add or remove line items whenever necessary, before locking it. See Add/remove/edit contract line items and Lock the contract for more details.

Search, filter and sort options:

Use the 'Search' box located at the top left to find an item using any value from the table as search criteria
Hover over a column header and use the sort icon to sort the table in ascending or descending order of the entries in that column
Right-click the column header and customize the display and order of the columns as you wish
The options at the top right allow you to filter the entries, and manage personalized and customized views of the table. Use the links below to learn more about these:

View Groups and Subtotals

You can get totals and subtotals of numerical data for any selected set of records by grouping and applying nested grouping. Use the icon at the top right to organize the data by column headers.
The system automatically aggregates relevant numerical values, giving a structured breakdown and a clear view of the grand total distribution. See Group and Organize Items in a List View for more details

Download as Excel Sheet

Click the button at the top right to save a local copy of the list in Excel format for sharing and record-keeping. See Download List Views and Logs in Excel Format for more details.