Budget Adjustments - Overview

A project budget establishes a locked financial baseline, but the reality of construction often requires funds to shift as work progresses. Linarc’s Budget Adjustment feature allows you to instantly rebalance financial resources to cover localized deficits using surplus funds from other areas. This provides crucial flexibility, allowing you to manage internal fund movements without altering the overall contract amount or initiating a complex change order.

Use this feature to seamlessly:

• Reallocate funds to address unexpected site conditions or localized price fluctuations.
• Transfer surplus money from one budget line to another.
• Adjust amounts across different cost types within the same budget line, keeping the line's total unchanged.
• Allot money from updated budget lines to existing or evolving tasks on the schedule.

Methods of Adjustment

Linarc supports two primary ways to adjust a budget within a single contract:

• Adjust Cost Breakdown Within a Budget Line: Shift funds between different cost types—such as labor, material, equipment, or overheads—inside the exact same line item. Example: If labor costs come in under budget but material prices spike, you can move funds to cover the material deficit without changing the line item's total value.
• Transfer Funds Across Budget Lines: Move surplus funds from one distinct budget line item to a completely different line item that requires additional funding for its associated tasks.

Manage Reserved Amounts in the Budget

When making adjustments across budget lines, you can draw from two types of reserved funds:

• Remaining Balance: This indicates any surplus amount within a specific budget line item. It is the amount left over after funds from that line have been allocated to its associated scheduled tasks.
• Unallocated Funds: You can set aside reserve funds by adding a separate line item labeled Unallocated (Task Code: 99-999). The behavior of this line item depends on how your budget was created:
  • Budgets Derived from a Contract: You can add an Unallocated line item under any main contract line item. However, funds from this reserve can only be distributed to budget lines within that specific contract group.
  • Manually Created Budgets: You can add only one global Unallocated line item. Funds from this single reserve can be distributed to any line item across the entire project budget.

See the following pages for more details:

• Modify Locked Budget
• View Budget Adjustment History