Standalone Contractors: Commitment Contracts - Overview

The 'Commitment Contract' module provides a solid financial foundation for your project, starting directly from your baseline commitment agreement. By setting up your contract and its high-level cost breakdown, you establish a locked financial reference that seamlessly drives your budget, project schedule, and billing workflows from day one.

With the 'Contract' module, you can:

• Set Up and Lock Commitment Contracts: Establish your contract with high-level cost breakdowns using one of two methods:
  • Auto-Extraction: Upload a PDF or DOC version of your contract. Linarc automatically extracts and populates the necessary data, allowing you to simply review, confirm, and lock the contract.
  • Manual Entry: Manually input the contract details and cost breakdown, then lock the contract.
• Manage the Project Budget: Create your project budget and distribute the total contract amount.
• Connect to Your WBS: Link your financial data directly to your Work Breakdown Structure (WBS), by allocating the funds across various your scheduled work items, for seamless tracking.
• Automate Billing: Streamline your cash flow by automating progress-based billing, pay applications (pay-apps), and invoice processing.

Seamless Budget Generation

Once a Prime Contract is set up, it becomes the definitive, secure reference for all your project's financials, allowing you to accurately build and distribute your budget.

Schedule and WBS Integration

Move seamlessly from financials to field operations. Linarc can auto-generate a draft task schedule directly from your locked budget. You can use this draft as a baseline to build a comprehensive, WBS-based project schedule, precisely allocating funds from your budget lines to the associated tasks, activities, and deliverables along your planned timeline.

Dynamic SOV and Budget Modifications

Your budget allocations serve as the foundation for generating a planned Schedule of Values (SOV), giving you the flexibility to group specific budget lines into SOV item groups. Because construction is unpredictable, the module also supports comprehensive budget modifications, allowing you to redistribute funds from one item to another as project requirements evolve.

Automated Progress Billing

Streamline your payment cycles and reduce manual entry. Linarc automates the creation of periodic, progress-based billing. By tracking the actual completion percentages of your scheduled field tasks, the system automatically generates accurate payment applications and efficiently processes your invoices.

Contract  Budget Setup Workflow

Setting up the project financial involves three steps. The right slider panel in the Contract, Budget, and SOV screens features an auto-updating checklist. As you complete each step in the finance setup, the list tracks your progress and provides direct shortcuts to your next tasks.

Use the links below to jump to the specific help articles for each step of the Finance Setup workflow:

Step 1 - Creating and Setting up the Commitment Contract

• Setup Your Project Contract

Step 2 - Creating and Setting up the Project Budget

• Set Up Project Budget

Step 3 - Set up the Project Schedule of Values (SOV)

• Configure Project SOV with Budget Line Items