How do I utilize the Contingency fund in a change order?

When creating a change order against a contract that contains at least one contingency fund, the change order can instead be converted into a "Contingency Transfer" change order.

Toggling a Change Order to be a Contingency Transfer:

1. When creating a change order, select your contract that contains a contingency fund.
2. An additional drop-down menu will appear in the General tab, allowing you to select a contingency fund to use.
3. Select a fund from the drop-down menu, fill out the other required fields, and click Save & Next to proceed to the Items tab.

Helpful Hint: Contingency transfers can only be made against one contingency fund per change order.

What is different in a Contingency Transfer Change Order?

If you selected a contingency fund, actions taken in the Items tab can have significantly different results on following invoices compared to a regular change order.

• Any amounts entered will automatically credit/debit accordingly from the contingency fund that you selected.
• You will not be able to proceed past the Items tab if there is not enough Remaining Contingency to fund your changes.
• When adding/subtracting money from an original contract line item, Projectmates will amend the line item in the following invoice, instead of creating a new line to represent the change.
• Adding new line items manually or through linking PCOs will still create new line items in the following invoices, similar to a regular change order.
• A contingency line item cannot be manually adjusted. It can only have money credited or debited from it.

What to do in the Items tab of your Contingency Transfer:

1. Fill out the Items tab as you would a normal change order. This can include the following:
   • Adjusting the dollar amounts on any original contract line items.
   • Manually creating new line items.
   • Creating new line items via linking PCOs.
2. Regardless of what actions you take, Projectmates will automatically adjust your selected Contingency Fund to accommodate these changes.
   
3. As with a regular change order, changes will only apply to invoices created after the change order has been fully approved.

How do I transfer contract contingency from one project to another?

In this scenario, the contractor has realized savings in one project but needs additional contingency money in another project. As such, the owner agrees to reduce the contract contingency amount in one of the contractor's projects and increase it by the same amount in the other GC project.

Project taking money out of:

1. Make CO representing negative amount NOT selecting contingency fund on General tab. Add a new line on ITEMS tab for the negative amount and link to the budget. This will reduce the contract by this amount and create a sub-item in the budget with a negative CO amount.
2. Make 2nd CO selecting continency fund. Add a new line on ITEMS tab for positive amount and link to the budget. This will draw down the same amount from the selected contingency fund and create a sub-item in the budget with a positive CO amount to offset the negative amount in the prior step.

Project adding money to:

1. Make CO representing positive amount NOT selecting contingency. Add a new line on ITEMS tab for the positive amount and link to the budget. This will increase the contract by this amount and create a sub-item in the budget with a positive CO amount.
2. Make 2nd CO selecting continency fund. Add a new line on ITEMS tab and enter in a negative amount and link to the budget. This will increase the contingency fund and create a sub-item in the budget with a negative CO amount to offset the positive amount in the prior step.