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Managing PM Contracts

PM Contracts sets up and maintains contract information — billing method and the link between contract revenue and job costs. It shares file JCCM with JC Contracts. Data entered here starts as Pending and is not in Job Cost until you interface the project and contract on PM Interface; afterward PM and JC update each other and status is mainly maintained in Job Cost.

Typically one contract per new project. At least one contract item is required (bill separately = separate item).

Before you start​

  • Contract # format is set at install (up to 10 characters). Because PM Projects often auto-adds the project number as the contract number, contract code length/format must match job codes.
  • Department exists in JC Departments. Customer exists in AR Customers (Active; On Hold warns but allows). Pay terms from HQ Payment Terms / the customer.
  • Security Group only if datatype bContract is secured and JCCM is In Use.
  • Potential Project only if Pre-Construction is installed.

Steps — set up a contract​

  1. Open PM Contracts (Project Management → Programs).
  2. Enter Contract # (or accept the number created from PM Projects).
  3. Enter Department (from project if initiated there; override allowed). Department, Default Retainage %, and Contract Start Month often default from the project.
  4. Enter Customer (usually leave project default) and Pay Terms.
  5. Optionally set Default Retainage %, Bill Day, Margin %, Tax Code (defaults onto items), Default Bill Type (or JC Company Parameters default), Contract Start Month.
  6. Complete the rest of the Info tab as needed.
  7. On Items: if created from PM Projects, one LS item may already exist. Edit or add items (also PM Contract Items). Progress (P) items usually mirror schedule of values / bid items; T&M (T) may need only one item.
  8. Use JB Info for Job Billing setup and Forecast for revenue/cost forecasts (see About Contract Forecasts).
  9. Assign items to phases on PM Projects (Phases) or PM Project Phases.
  10. Interface the project and contract on PM Interface so the contract moves from Pending to Open in Job Cost.

Key rules​

  • Saving changes to header Department, Retainage %, Tax Code, or Default Bill Type prompts whether to update items that still have the old value.
  • Changing start month can update items that had the old month; original estimates follow the item start month.
  • Delete a contract only if no phases, not interfaced, and no JC/JB detail — delete all items first. Deleted numbers still in JCHC/JCHJ cannot be reused until JC Contract Purge.
  • Status: 0 Pending, 1 Open, 2 Soft-Closed, 3 Final-Closed. Soft/Final close in JC Contract Close, not here. Field defs allow Soft→Open or Final→Soft in some cases; form text says after interface status is maintained in JC and not edited here — prefer JC for close/reopen.
  • Interface Taxes checked = tax included in revenue interfaced to JC.
  • Review Level (0–4) is the minimum review before AR interface; level 4 requires Approved for Billing or the billing will not appear in JB Interface.
  • JB Info writes back to JB Contract Info (shared bJCCM with PM/JC Contracts).

Max retention and forecasts​

  • Max retention: None / Percent of Contract / Maximum Amount; optional Include Change Orders in Max Retention %; Adjust Maximum Bill (Composite % vs Item %).
  • Revenue Amount = Revenue % × Current Contract; Cost Amount = Cost % × Current Estimate (editing amount recalculates %). Linear forecast help text has inconsistent Cost % examples — verify against your JC/PM forecast docs.

AU notes​

If Using CM Trust Accounts (Australia): General, Disputed, and Retention CM accounts; Qualification Date; CMCo. Country (2-char) overrides billing country when outside HQ Default Country.

Notes​

  • Related: PM Contract Items, PM Projects, PM Interface, PM Project Phases, JC Contracts, JB Contract Info, JC Company Parameters, About Contract Forecasts, Setting Maximum Retention Amounts for Contracts.