Contract Reduction in the Event of a Failed Test/Liquidated Damages

To apply penalties/fines/deductions to an active project in case of a failed test or liquidated damages a change order can be created to adjust the amount.

Optional: Add a new ‘Contract Change Type’:

A OneOffice administrator can create a new Contract Change Type if a type other than the available defaults should be used. For example, adding a ‘Liquidated Damages’ change type.

A new type can also be added when creating a new contract change.

1. Select the ‘Type’ box.

2. In the dropdown, click ‘Click to Add New’.

3. Add a name, abbreviation, and select if the type will have adjustments.

4. Save your new contract change type and select the new type, which is now visible in the dropdown.

Adding a Disincentive Item:

1. While on the ‘Contract Changes’ page select ‘Add’.

2. Enter the Contract Change Type, Description, and Requested by fields then click ‘Save’.

3. Select ‘Details’ next to the change order that was created, then select ‘Add’ under the ‘New Change Items’ table.

4. If a disincentive item already exists in OneOffice, then search and select the item.

   1. If the item doesn’t already exist select ‘Add an Item’ at the top right of the page, and add the custom item.

5. After the item has been added set the ‘Quantity’ of the disincentive item, this is usually set to '1'.

6. Enter the lump sum about to be deducted from the contract and save the item.

7. Complete the change order by selecting ‘Edit' on the Contract Change and check the ‘Is Completed’ checkbox. Also approve the change order either by checking the ‘Is Approved’ checkbox or routing it for approval.

8. A transaction can now be added to this item under the ‘Item Record Account’.