Overview:

For a broader overview of Work in Progress (WIP), please see Work In Progress Overview.

This tab will only appear if the contract's WIP Code has the "WIP Justifications" option ticked.

This Contract tab can only be utilised once Contract Forecasts and Generate WIP Accruals have been run, with the purpose of giving project managers a way to quantify and explain under/over claims.

The Code list of options can be edited in Statuses under "WIP Adjustment Codes."

Screen Guide:

Open

First, make sure that the Forecast Period is set to the desired period. It defaults to the current period set in Period Ends.

There are two display panels on the left of the screen:

Panel 1 “Summary” shows a summary of the WIP calculation for the period and the WIP Value.

Panel 2 “Under / Over WIP” shows the sum of any Over / Under Claim Adjustments entered and this value is then subtracted from the WIP Accrual to highlight any remaining variance to WIP.

Under Claims are used to record the details of any scenario where you have incurred costs but have been unable to fully claim for the work done. Some examples could be:

1. You are a pipeline contractor and have procured the pipes for your project. You have not laid all the pipe yet and cannot claim to cover all the costs of the pipework so you are underclaimed.

2. Your contract schedule may be based on claiming milestones when they are completed in full. You may have started work on a given stage and are incurring costs but you may not have completed it yet so you cannot claim it.

Select the appropriate Code and more relevant information in the Description. Next, enter the Quantity and Rate for the line to produce the Value. Continue creating as many New Lines as needed.

Over Claims works the same as the Under Claims section, except this  section is used to specify reasons for claiming in excess of your progress to date. Some examples could be:

1. You have subcontracted out a portion of work in your contract and you have claimed for this work as it is complete. You have not yet received the claim from the subby for this work so in this case you would be Over Claimed.

2. You have claimed ahead based on expected progress and also because you expect the client to mark down your claim.

The aim is to fully explain the calculated WIP Accrual. The sum of the Under / Over Claims are subtracted from the WIP Accrual and the remaining Net Variance to WIP is shown.

The ideal scenario is to get the variance to zero, in which case the WIP has been fully justified and explained through the Over / Under claim entries.

Use the Paperclip symbol for each line if you wish to attach a document or file to give evidence for review. Remember to Save after making any changes.

Next Steps:

Continue to the Contract Potential Gains/Loss tab to specify any potential gains or losses.