How to set up a line items for a Base Contract, Variations and Materials
OVERVIEW
Once you have set up a Contract for your new Project you can add line items to the following details to ensure you get paid accurately each month:
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Base Contract - This generally refers to the original agreed scope of works to be completed. Line items created here cannot be changed after the first claim unless it has been marked as a Provisional fee.
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Variations - An alteration to base contract whether by way of an addition, omission, or substitution to the works. This allows you continue adding line items onto the Contract after a claim has been made.
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Materials - Materials on/off site can be added in the Contract. There is no fee value during the setup as the amount you want to claim is added during the claiming process.
ADDING BASE CONTRACT LINE ITEMS
In order to complete all the details for a successful monthly Payment Claim, you need to add all the items you will claim on in order to fulfill it. Items can be added as a:
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Lump Sum - Enter the total fee of the line item with a description.
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Qty & Rate - Total fee is calculated based on Qty, Unit(metres squared, liters, etc), and Rate.
When building out your base contract, we recommend you use the Child function to break out your Stages or Phases of work. You should also give each phase a sequential numbering system, for example:
1 Stage 1
1.1 North Wall
1.1.1 Weatherboards
1.1.2 Framing
1.1.3 Nails
1.1.4 Screws
1.1.4.1 Galvanised Screws
1.1.4.2 Tin Screws
2 Stage 2
2.1 Window Frame and Sill
2.1.1 Glass, etc, etc
If you do this, make sure you just enter the Item title first and give it a Quantity of 1, for now, ignore Unit and Rate, these will fill in automatically and add up accordingly as you build out the Child Line Items.
If not, just fill in line item accordingly as a Lump Sum or Qty & Rate and hit the + Add button to add the item to the Base Contract. You can also add a Detailed description or any relevant Attachments to the line item if desired. If you need to go back and edit a line item, simply press the pencil icon under the Action column.
You will not be able to edit a base contract once you have made your first Payment Claim. However, you can toggle the Provisional function which allows the fee of the specific line item to be edited after it's been claimed.
You may have noticed an Import Excel File button on the top right, this an alternative way to set up your line items. If you press this button, a handy template and set of instructions will be there to guide you.
ADDING CHILD ITEMS
To add a Child Item you need to then select the + symbol to the far right of the Line Item.
You can now add the line item as you would normally and repeat the process as many times as needed. Once you have completed this, the Child Item can be found by clicking the + button on the left of left of the item Description.
If you delete a Parent Item, all the Child Items below it will also be deleted.
By hitting the + button to expand it, the Child Line Items will now appear below the Parent Item as below. You'll see too, the Parent Item (New Roof) is now adding up the Total cost of the Child Items (the Roofing Iron and Nails).
MULTIPLE CHILD ITEMS
In PayLab, you can create Child Items six levels deep.
The example below shows four levels of Child Items from New Roof to Down pipe Straight and Down pipe Elbow.
Once you have added in all the line items you need, you can compress each sub-Child so everything is visible on a shorter screen (see below). This is done by clicking on the minus symbol beside each Parent or Sub-Parent item - in the example above, to the left of the Down pipe and Guttering line items.
VARIATIONS
Adding line items in Variations is very similar to Base Contract but with a few additional details, the Submit Date, Approved Date, and Variation Reference. You will also find the Exclude From Retention check box at the bottom right which will exclude the line item from retention calculations.
MATERIALS
For Materials, there is no fee value during the setup as the amount you want to claim is entered during the claiming process. Line items here are either marked as On Site or Off Site and will appear so accordingly in your Claim.
Congratulations! You've now completed setting up your line items. Go have a nice biscuit, the ones in the secret cupboard that the team don't know about.