Contract line items

Many contracts, particularly for construction projects, specify their scope within the contract document as lists of line items of predefined prices for all the contract deliverables. However, contract documents can have hundreds of pages, as well as supplementary documents and appendices that each describe only a portion of the scope. This means that it can be difficult for the company users responsible for the verification of payment requests to be certain that contractors are referencing the approved contract line items and values, or to identify when specific line items are being over-consumed.

The AVEVA Contract Risk Management line items functionality:

• Provides highly structured and visible line item support for contracts, to allow company and contractor users to easily understand the breakdown of the contract award value.

• Allows the commitment value of the contract to be updated by applying commitment changes to line items, including to individual contract breakdown items if used. See Commitment change line items.

• Enforces the use of the predefined line items in contract communications which record expenditure for the contract, including against individual contract breakdown items if used. See Expenditure line items.

The following types of line items can be defined:

• Lump Sum - A payment made to the contractor that can be claimed as a single amount or in installments.

• Milestone Payment - A payment made to the contractor when an agreed milestone is met, such as a specific date or delivery target.

• Progressive Payment - A payment made to the contractor on the basis of earned value as a percentage of the total contract award value.

• Reimbursable - A payment made to the contractor for time and materials consumed, based on rates agreed and defined in the contract. See Contract rates for more information.

• Unit Rate - A line item which has an agreed price, and a total quantity that has been negotiated between the company and contractor and committed to in the contract as the maximum that can be used.

Each line item has an Initial Commitment value, which is the total price agreed in the contract. For Unit Rate line items, this is calculated as Unit Rate x Committed Quantity.

Line items can also have progress measures, which allow the tracking of progress against the item. See Progress measures for more information.

Contract line items are managed on the Contract Breakdown tab. A list of them can also be seen on the Line Items page; see View contract line items.

Line items can be added using the following methods:

• Manually add line items

• Import contract setup data