Your commitment contract serves as the top-level financial foundation for your project. The Contract module enables you to establish this primary agreement, clearly define key terms, and organize your revenue breakdown—allowing you to seamlessly transition from an agreed-upon scope of work to an actionable project budget.
Fast-Track Your Setup with Auto-Extraction
Simply upload a PDF or DOCX version of your contract file, and Linarc will automatically extract contract terms and high-level cost breakdowns, instantly populating the required details for quick review and confirmation.
Key Capabilities
- Define Scope and Revenue: If you prefer manual entry or don't have the document ready, you can manually enter quoted high-level category amounts as individual contract line items.
- Build Your Breakdown: Populate contract line items directly into the system, building incrementally and saving progress over time.
- Draft Your Project Budget: Draft your project budget in tandem with the contract. Progressively add granular budget line items that map back to the contract scope, while configuring the project Schedule of Values (SOV) for currently budgeted items.
- Secure Financial Data: Lock the contract once it is finalized and the total amount is exhaustively distributed across your budget line items. This secures your baseline and prevents unintended modifications.
- Finalize Your Master Budget: Once the contract is locked, finalize your overarching project budget in strict alignment with the locked contract values.
To set up your project's commitment contract in Linarc
Ensure you are in the 'Contract' screen within the 'Finance & Controls' module. If you are not already there:
- Click the main menu icon at the top-left of your screen.
- Select 'Contract' under the 'Finance & Controls' section in the drop-down main menu.
Tip: Press and hold the Cmd (Mac) or Ctrl (Windows) key on your keyboard while clicking to open the module in a new browser tab
The 'Commitment Contract' screen opens, allowing you to begin your setup. You can establish your contract with high-level cost breakdowns using one of two methods:
- Method 1 - Upload the Contract Document (Auto-Extraction): Upload a PDF or DOCX version of your contract file. Linarc automatically extracts and populates the necessary data—including pulling billing terms directly from the contract to automatically set up your billing configuration. Simply review the data, confirm the details, and finalize the contract.
- Method 2 - Manual Entry: Manually input all the required contract details and cost breakdowns from scratch, then lock the contract. Note that with this method, the General Contractor must also configure the billing settings manually.
The left panel features an auto-updating checklist that tracks your progress through the project's financial setup.
Method 1 - Upload the Contract Document
Click 'Upload Document.' Reminder: The accepted file formats are PDF and DOCX
- Click 'Browse' and navigate to the contract file
- Alternatively, drag and drop the contract file into the box
The system scans your uploaded contract and extracts all relevant data in just a few moments:
Once the extraction is complete, you will see a side-by-side view of your original document (PDF or DOC) alongside the extracted details. This intuitive layout allows you to easily cross-reference the information, fill in any missing gaps, and correct any inaccuracies.
Data Extraction Overview
At the top of the right screen, the system provides a quick summary of the extraction results:
- Data Completeness: Indicates the percentage of required data the system successfully pulled from the document.
- Confidence: Indicates how certain the AI is that it read and categorized the data correctly.
- Flags: Shows the number of mandatory fields that the system could not locate. You will need to enter this data manually.
- Click on the flag number to instantly view a list of the missing or uncertain entries. An example is shown below:
- Click 'Warnings' to view extraction error logs.
Review and Correct the Extracted Details
The data is organized into 12 distinct sections. As you review the extracted information, keep the following UI features in mind:
- Field Counts: The number of fields within a section is displayed next to its header.
- Confidence Indicators: The confidence level for the data extraction is shown directly beside each individual field.
- Source Referencing: Click the 'i' (information) icon next to any field to highlight the exact section of the original document where the data was found.
- Mandatory Fields: Required fields are marked with a red asterisk (*). If these are blank or incorrect, you must manually input the correct data before proceeding.
The 12 Contract Sections
Review and verify the data across the following categories, manually entering or adjusting details as needed:
1. Parties - Details of the legal entities bound by the agreement, specifically the client (General Contractor or Owner).
2. Identification - General contract identifiers, including the contract number, associated project name, and contract type.
3. Dates - Key project timelines, such as the contract execution date, start date, and end date. Use the built-in calendar tool to easily select or adjust these dates.
4. Financial - High-level financial figures, including the total contract amount, general conditions, and contingencies.
5. Payment Terms - Your company's automated billing configuration. This includes billing periodicity, pay application (pay-app) and invoice submission deadlines, approval due dates, and your accepted payment receipt channels.
6. Retainage & Release - The established retainage percentages and the specific parameters for withholding and releasing funds.
7. Insurance & Bonds - Requirements and coverage details for insurance policies, liability limits, worker's compensation, and surety bonds.
8. Lien Waivers - Settings, requirements, and conditions for processing project lien waivers.
9. Change Orders - The agreed-upon conditions, parameters, and default markup percentages for handling project change orders.
10. Scope - A high-level description of the specific work items and deliverables covered by the contract.
11. Narrative Terms - Written terms and conditions governing financial transactions, payments, retainage, and general rules of engagement.
12. Schedule of Values (SOV) - A detailed, line-item cost breakdown of the total contract sum, organized across specific work items, disciplines, divisions, and trades.
Once all mandatory fields are entered with correct data, the next step is to publish the contract.
- Click 'Save' to save your entered data
- Click 'Save' to confirm
The progress checklist in the left slider pane indicates the completed steps in your contract set up.
- Click 'View Extraction' to see the uploaded document and the extracted details side-by-side at anytime
- You can still add new contract line items manually by clicking 'Add New Item' untill the contract is locked
Once the contract is uploaded, you can start buildng the budget and assign contract amounts to the subcontractors and more.
Next Step - Lock the Contract
Method 2 - Manually Set up the Contract
- Click 'Enter Manually' from the initial set up screen
Setting up your commitment contract involves the following steps:
- Step 1 - Enter Contract Details
- Step 2 - Save the Contract File (Optional)
- Step 3 - Setup the Contract Cost Breakdown
Step 1 - Enter Contract Details
Start Date: The date contracted work officially begins and legal obligations commence. This defaults to the project's start date but can be adjusted. Note: This date cannot be set earlier than the project start date.
End Date: The contractual deadline for completing all scope items. This defaults to the estimated project completion date but can be adjusted. Note: This date cannot be set later than the project end date.
Executed Date: The date the contract is formally signed and legally binding between parties. This defaults to the project start date but can be modified. Note: This date must fall within the project’s overall timeframe.
Tip: Click inside any date field to select a new date using the interactive calendar, then click Save.
Billing Method: Select your primary progress billing mode to govern how pay applications are generated:
- Schedule - Progress Based: Linarc tracks task completion percentages and automatically calculates the monetary values earned for the current billing period.
- SOV-Based: Allows you to claim progress billings by percentage or direct monetary amount against individual Schedule of Values line items for work completed during the month.
- Budget-Based: Allows you to claim progress billings by percentage or direct monetary amount against individual budget line items for work completed during the month.
- Click 'Save.'
The progress checklist in the left slider pane indicates the completed steps in your contract set up.
Step 2 - Save the Contract File (Optional)
- Contract File – Click the 'Upload File' button to add the digital copy of the executed contract document.
You can upload the file using one of two methods:
- From your device: Drag and drop the PDF/DOCX into the designated box, or click 'Browse' to locate the file on your computer.
- From the project repository: Select the drive from the left menu and navigate to the file, if it is already uploaded to your project's cloud drive.
Once saved, the document is automatically archived in the project's cloud-based file repository under the following path: System Drive > Finance > [Company Name] > Contract.
For further guidance on accessing archived documents, please refer to the View and Download Files article.
Step 3 - Setup the Contract Cost Breakdown
You can set up your contract in two ways:
Manually Create your Contract
- Click 'Create'
By default, your contract breakdown table starts with a single row. You can edit this initial row and continue adding new rows one by one until your total contract amount is fully distributed.
To set up the contract breakdown
1. Edit the first row: Update the existing single line item to reflect your first contract division or scope of work.
- Contract Line: Enter the name of the specific scope or cost item defined within the contract.
- Contract Value: Enter the agreed monetary value for this specific line. (Note: Enter values using the currency specified in your billing setup).
2. Add more rows: Click '+ Add New item' to continue adding line items for the rest of your contract scope.
3. Delete mistakes: To remove a line added by mistake, select it by clicking its serial number on the left, then click the Trashcan icon at the top of the table or directly click the trashcan in the 'Actions' column.
4. Save your progress: Click 'Save' to store your draft.
Finalizing the Contract
You can build this breakdown incrementally, making corrections as required, and saving your progress until you finalized the full contract. Once the full amount is accurately distributed across all rows, you can officially lock the contract.
Import your Contract Breakdown from an Excel file
Using an Excel file to upload your cost breakdown involves two steps:
Step 1 - Create the Contract
1. Download the Excel Template:
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.
2. Prepare your contract file
- 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.
- Save the Excel file with an appropriate name.
Step 2 - Upload your Contract File
1. Upload the contract file
- Click 'Browse' and navigate to the file you want to upload
- Alternatively, drag and drop the file into the box
The contract is added as a draft.
Any missing or inappropriate values are highlighted in red.
2. Edit the values and correct the errors, if any. - Click inside the cell and enter/select the correct entry.
3. Build and Manage Rows
- Add a new row: Click '+Add New Row' to create new budget lines and enter the values.
- Insert a row: Right-click on an existing line and select 'Add New Row 'to insert a new row directly below it.
- Delete a row: To remove a budget line added inadvertently, select the row by clicking its serial number and click the Trash Can icon at the top left of the table. Alternatively, right-click on the line and select 'Delete.
4. Save Your Progress
- Click 'Save' to store your work.
You can edit the contract line items, add or remove line items whenever necessary, before locking it.
Lock the Contract
After entering and saving the cost amounts for all contract line items, you can lock the contract. Locking the contract establishes it as a fixed, binding reference point for project execution, financial tracking, and auditing. Once a contract is locked, it becomes read-only and cannot be altered directly. This ensures that the original contract values remain preserved for accountability and compliance.
To lock the contract
- Review the project contract and ensure it exhaustively covers all planned work
- Click 'Lock Contract' on the top right
- Click 'Yes' to lock the contract.
Search, Filter, and Sorting Options
- Click the magnifier icon and use the 'Search' box located at the top left to find an entry using any value from the table as search criteria
- Click any column header to sort the rows in ascending or descending order based on that column's data.
- Click the cog wheel icon at the top right to adjust the display density and customize the display and order of the columns
- The options at the top left allow you to filter the entries, create nested groups of entries, highlight cells and manage personalized and customized views of the table. Use the links below to learn more:
Next Steps:
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