Allocate Funds to Work Items

Modified on Tue, 16 Sep at 10:20 PM

The contract module in Linarc connects your commitment details with the project’s cost and schedule structure, ensuring financial accuracy and accountability.

Link contract line items to the project schedule items.
Scheduled tasks automatically inherit cost codes and allocated amounts from the linked contract line items.
Commitment data serves as the foundation for preparing a faster and more accurate planned Schedule of Values (SOV).
Task progress is continuously tracked, generating dynamic progress billing data.
This billing data can be used to create periodic payment applications, which are seamlessly converted into invoices.

You can assign committed amounts flexibly to individual leaf-level tasks in your WBS-based schedule, depending on the nature of each task. The module supports progressive allocation, allowing a single contract line item to be distributed across multiple tasks or phases.

Pre-requesites:
A contract with the list of work items and their planned cost amounts are uploaded to the project and locked.
Required tasks, subtasks and activities are added to the contractor schedule and publised.

To assign the contract to individual schedule items

Ensure that you're in the Project 'Contract Allocation' screen. If not:
- Click the app launcherand select 'Finance' from the project management console
- Click 'Contract' on top, then select 'Allocate' on the left

The screen shows the project contract-based cost breakdown with the following columns:

Task Code - The cost code of the line item. Typically, this is the standard code for the task or deliverable as per CSI Master Format. If your company uses a custom coding system, the corresponding code is shown.
Task Name - The label of the work/task item
Total Quantity - The overall measurable amount of work defined for the line item
UOM (Unit of Measure) - Units by which the amount of work done is measured
Unit Value - The cost assigned for completing one unit of work, based on the defined unit of measure.
Remaining Quantity -The quantity of work remaining after allotment to relevant schedule items. This value is dynamically calculated on every fractional allotment of funds from this contract line item to a task item.
Total Amount- The total planned amount for the item
Remaining Amount- The amount left after allotment to relevant schedule items. This value is dynamically calculated on every fractional allotment of funds from this contract line item to a task item.
Labor cost- The monetary value of labor expenses allocated for the line item.
Remaining Labor Cost - The portion of the labor cost that remains after allocation to associated schedule items. This value is dynamically updated with each incremental assignment of labor costs from this contract line item to a task item.
Material Cost - The monetary value of materials and supplies required for the line item’s execution.
Remaining Material Cost - The portion of the material cost still available after allotment to relevant schedule tasks. This value is automatically recalculated upon each partial allocation of material costs from this contract line item.
Equipment cost- The monetary value of equipment expenses allocated to the line item, including rentals, operation, or usage costs of machinery.
Remaining Equipment Cost - The equipment cost that remains unassigned after allocation to applicable schedule items. It is recalculated dynamically with every partial allocation from this contract line item to a task.
Overhead cost - The share of indirect project expenses (such as supervision, utilities, insurance, or administrative charges) allocated to the line item.
Remaining Overhead Cost - The leftover overhead amount following allotments to applicable schedule items. This value recalculates automatically upon every partial distribution from this line item.

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 the mouse and click the sort icon next to the column header to sort the table in ascending order by that column. Click the icon again to sort the table in decending order.
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.

Select a line item to distribute funds from it to a task item by clicking the serial number

All applicable schedule items from the schedule appear in the lower pane.

Amounts can be assigned in two ways:

By quantity – Allocate funds to tasks by assigning a portion of the work quantity. This is useful for unit-rate contracts where payment depends on measured quantities.
By lump-sum values – If no quantity is defined for a line item, allocate funds by entering the monetary value directly. This method is especially useful when costs are set as a lump sum for a work package.

If a planned quantity is defined for a contract line item, amounts can be distributed to scheduled tasks only in terms of quantity. Distribution by monetary value is allowed only for line items without a planned work quantity.

Work Quantity

Double-click inside the Allocation Quantity column in the row of the schedule item to which you want to assign funds.
Enter the quantity of work associated with the task.

The system calculates and assigns proportional costs for each cost type, deducts them from the linked contract line item, and automatically updates the remaining balance for that line item.

Repeat this process to allocate quantities from the same line item to other applicable tasks.

Total Amount

Double-click inside the Allocation Amount column in the row of the schedule item.
Specify the total planned amount for the task using one of the following methods:
- Amount – Manually enter the value to allocate to the task.
- Percentage – Enter the percentage of the estimate to be allocated to the task (e.g., 60%).

The system calculates the corresponding amount from the linked contract line item, assigns proportional costs to each cost type, deducts them from the line item, and updates the remaining balance automatically.

Repeat this process to allocate amount from the same line item to other applicable tasks.

Custom Allocation by cost type

Double-click inside any of the cost type columns—Labor, Material, Equipment, etc.—in the row of the task item.
Manually enter specific dollar amounts for each applicable cost type.
Enter ‘0’ for cost types not relevant to the task.

Each value is deducted from its corresponding cost type in the estimate, with real-time updates to remaining balances.

Repeat this process to allocate amount from the same line item to other applicable tasks.