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Contract validation rules

Validation rules are used on contracts to ensure changes or payment applications are correct.

Cost enforces some business rules on contracts to ensure changes or payment applications don’t violate some basic principles of cost management.

The two basic rules are:

  1. The total contract percent invoiced must be less than or equal to 100%.
  2. The percent invoiced for each pay item must be less than or equal to 100%.

Rule Examples

Rule 1

Rule 1 is applied against the total value of the contract and is useful when a contract includes negative pay items, as shown in the example below. 

Without this rule, a payment application for 100% of Item 1 and Item 2 could be approved, which would cause payments to exceed the total value of the contract.

Note: The scenario in the table below is prevented by Rule 1.

Current AmountAll ActualsPercent Invoiced
Pay Item 1 – Area A$1,000$1,000100%
Pay Item 2 – Area B$1,000$1,000100%
Pay Item 3 – Backcharge-$200$00%
Contract Total$1,800$2,000111.11%

This rule also applies when contract changes are being submitted and approved, to prevent negative changes reducing the contract value below the all actuals amount. 

Rule 2

Rule 2 is similar to Rule 1, but applied to each pay item on the contract. It’s possible for the total contract to be less than or equal to 100%, but individual pay items could still be over 100%.

Note: The scenario in the table below is prevented by Rule 2.

Current AmountAll ActualsPercent Invoiced
Pay Item 1 – Area A$1,000$1,100110%
Pay Item 2 – Area B$1,000$80080%
Pay Item 3 – Backcharge-$200-$10050%
Contract Total$1,800$2,00100%

Disabled Validation

In some cases, contract validation will have to be disabled by Aconex for specific contracts. This usually happens when an error has occurred, and the contract data needs to be corrected.

If validation is disabled, you will see the following message on the Payment Application screen.

The validation disabled message in the Payment Application window.

Before validation can be re-enabled, the total contract must be less than or equal to 100% percent invoiced (Rule 1), and all pay items must have a percent invoiced less than or equal to 100% (Rule 2).

Validation can only be re-enabled manually by Aconex. Please contact Service Desk when you want it to talk to us about re-enabling it.

Warning

While validation is disabled, it’s still possible to approve payment applications that exceed the contract value. This could result in actual costs exceeding commitments on the cost worksheet. We recommend that you have validation re-enabled as soon as possible.

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