Understanding the behavior of contracts and change orders


I was working in a capital project, executing several standard contracts to generate some budgetary values at the project budget level. As part of the procurement lifecycle, I wanted to execute some change orders to show how those dollars are represented at the budget level. When selecting the Find action on the Change Order form, I noted that I didn’t have as many contracts to select from as I had created overall.

As designed, the relationship between contracts and change orders requires that the contract be in a Completed state before a change order can be applied. In essence, both parties must agree to the original value of the contract amount before any changes can be executed. Some of the contracts were not in a Completed state. Ensure that any contract that you want to apply change orders to, has moved to a Completed state prior to executing change orders for it.

[Admin: This post is related to the 06.15.17 post about APAR IV96787 where retiring a contract does not retire change orders or invoices. To see other related posts, use the Change Orders tag.]

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One thought on “Understanding the behavior of contracts and change orders

  1. Pingback: IV96787: Retiring contract does not retire change orders or invoices – TRIRIGAFEEDIA

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