Contracts

Overview

1. A contract document is a legal & financial obligation between any two parties entering into the contract.

2. After the estimates are created and approved, they are grouped or individually tendered/direct assigned to vendors to execute the work.

3. A works package is typically not seen in all Works Management Products. it is used only where high-complexity projects are executed where packaging is needed to form smaller or larger chunks so as to increase operational efficiency.

4. The current contract service includes Line items of estimates, Works packaging, Negotiation, Contract Terms, and Milestones.

Actors

The Junior Engineer/Assistant Engineer creates the contracts and the Municipal Engineer/Executing Officer approves the contract depending on its value. (Workflow configurations based on amount subject to platform capability in v1).

Create Contract

Story Detail

• After Estimates are created and approved for projects/sub-projects, these estimates can be grouped in specific ways to form works packages.

• The need for grouping arises in the way how the JE/ULB wants to execute the project(s). For instance -

  • Small Projects(Estimates) of similar types in nearby localities can be grouped to form a single works package. This work package can be tendered, negotiated and contracted. (Most common need of work package)

  • A huge project(estimate) can be broken down into multiple work packages by the line items approved within the estimate. The value of the work packages in this case will be proportional to the costs of the line items. (This breakdown is already achieved by dividing projects into sub-projects and hence might not be needed during estimations)

• Works package will go for tendering or direct assignment depending on the project.

  Tendering/Negotiation can be of two types

  1. Lumpsum - Entire package will be negotiated by a percentage value or lump sum value.

     • Running bills will be validated by the measurements of the line items in the works package.

     • The final bill will be adjusted to the remaining amount

  2. Percentage line item

     • Each line item will be negotiated and negotiated values will be paid as part of the contract

     • Running bills will be validated by the measurements of line items in te works package

     • The final bill will be adjusted to the remaining negotiated amount of each line item.

• The contract will have milestones and only when milestones are met, payments will be made to the contractors.

• The contract will also have terms and conditions (text only in v1, to be codified in v2)

• The contract will have an approval workflow. Upon clicking proceed to forward on the last tab, the user will be shown a popup to select forwarding details.

• Rejected contracts will come to the inbox of the creator for any modifications.

• Statuses of Contract

  1. Created

  2. In progress

  3. Approved

  4. Rejected (Rejected in Workflow. Comes to the inbox of the creator. Can be edited and resent for approval)

  5. Cancelled (Completely Cancelled. Cannot be edited)

View Contract