Creating a Subcontract Variation for Head Contractors

Caution: Do not create variations manually if your accounting package is set to interface with the system.

To create a Subcontract Variation (SV):

  1. From the Subcontract Variation tab, select the +Add... button.

    An Add Subcontract Variation dialog box displays.

  2. In the dialog box, choose a contract from the drop-down, and select the Next button.

    The dialog box closes and the Contract Maintenance page displays.

  3. From the Contract Maintenance page, select the Variation button.

    A dialog box displays.

  4. In the dialog box, enter information in all available fields.
  5. (Optional) If the project uses the Require Variance Compliance project setting, choose a compliance status from the Compliance drop-down.
  6. (Optional) Select the Hidden Variation option to modify the Original Work Breakdown and Contract Sum to Date columns in a project's Work Breakdown (WB).

    Hidden variations:

    • Do not appear in the Net Change by Variation column
    • Are not identified as a change variation-related value on progress claims documents
    • Cannot be un-hidden later.
  7. Select the Save Changes button.

    The dialog box closes and the Contract Maintenance page shows the Variations tab.

    The table on the page includes:

    • A Variation created in Session button with the variation amount.
    • A Variation Adjustment column displayed in red.
  8. (Optional) Add a new line if the variation includes work not itemised in the contract.
    1. Select the Add New Component button.

      A new line appears.

    2. Select the Item column for the new line, and then select the Find button.

      A dialog box displays.

    3. In the dialog box, select the Owner WB component to link to the subcontract cost code.

      The dialog box closes, and the Item and Description fields automatically display information pulled from the selected Owner WB component. You can change the description.

    4. Enter a Subcontract Item.

      When integrating an ERP or accounting package with the TPM application, this number categorises work in your integrated software. The format is dictated by your accounting package.

  9. In the Variation Adjustment column, enter the amount to pay the Subcontractor for each line impacted by the variation.
    • SVs that create a new component automatically allocate the new component to Subcontractor WB (as a single line-item).
    • SVs that change existing components require a Subcontractor to allocate the variation.
    • The total displayed under the Variation Adjustment column must match the total amount of the variation.
  10. Select Save Changes.
    • A Status page confirms the contract changes have been saved.
    • The application sends an email to Project Managers in the Subcontractor organisation, informing them them that a variation was added.
    • A task to allocate the variation displays on the Subcontractor Project Home, Period Home, and Tasks pages.
    • If the contract uses the Specified WB setting, you will allocate the subcontract variation in place of the Subcontractor. You will see a project task and receive an email prompting you to allocate funds.
    • If the project includes the Contract Value Change conditional requirement, adding a variation may trigger compliance enforcement.
    • If you created the variation in error, you can delete it before it is allocated.