You use the applications in the Contracts module to manage
contracts for labor rates, purchases, leases, warranties, and software.
You can create different types of contracts and define the rules that
govern each type of contract.
You can adjust prices and payment schedules, associate service
level agreements with contracts, and view the history of contracts
and contract revisions. You also can create master contracts to associate
multiple contracts for the same vendor. When you create a contract,
you specify the properties, and terms and conditions of the contract,
and you specify the assets, people, or licenses associated with it.
The default installation contains the following types of contracts:
- Blanket (volume) contract
- An agreement that specifies a vendor, a total dollar amount, and
valid dates for the agreement. Typically, a blanket contract is used
to purchase services and/or materials at agreed upon prices and terms.
You can create release purchase orders in the Purchase Orders application
that reference the blanket contract. Blanket contracts are created
in the Purchase Contracts application.
- Labor contract
- A way to define the rates that will be paid for craft and skill
combinations, and also rates to be paid to specific contract laborers.
You can set up a labor rate contract to create invoices for all approved
labor transactions within a specified time period, such as every month.
Labor contracts are created in the Labor Rate Contracts application.
- Lease contract
- An agreement to lease one or more assets from a vendor. Lease
contracts specify lease period, payment schedules, and other conditions
of the contract. Invoices can be generated based on the payment schedule
intervals. This type of agreement may involve more than two parties,
as one vendor may sell the assets and another may hold the lease.
Lease contracts are created in the Lease/Rental Contracts application.
- Pricing contract
- A price agreement contract specifies the prices to be paid for
specific items purchased from a specific vendor. Typically, a price
agreement is used to purchase services and/or materials at agreed
upon prices and terms. Pricing contracts are created in the Purchase
Contracts application.
- Purchase contract
- Specifies the terms and conditions for a purchase. Purchase contracts
are created in the Purchase Contracts application.
- Rental contract
- Similar to a lease contract. Rental contracts specify the time
period for the rental, payment schedules, and other conditions of
the contract. Unlike a lease, a rental contract can be terminated
at will, and does not include a buy-out option in the terms of the
contract. Rental contracts are created in the Lease/Rental Contracts
application.
- Service contract
- Similar to a warranty, except that some of the items are billed
on a per-incident basis. A service contract contain the details of
the services to be provided, and if a payment schedule is associated
with the contract. Service contracts are created in the Warranty Contracts
application.
- Master contract
- A way to associate many contract types together for the same vendor
and define terms and conditions for the relationship with the vendor.
A master contract lists all contracts that you have with a particular
vendor. For example, a master contract might list rental contracts
for tools or equipment, purchase contracts for materials, a labor
rate contract, and a warranty on parts and labor. Master contracts
are created in the Master Contracts application.
- Warranty contract
- Created in conjunction with the purchase of an asset and generally
has no costs associated with it. This contract contains the details
of what is covered by the warranty. If a warranty contract is purchased,
this is considered an extended warranty. Warranty contracts are created
in the Warranty Contracts application.
- Software contract
- An agreement in which you can specify the items or services provided,
costs, shipping and handling, expected delivery times, financial terms,
and vendor information for the software licenses that you have purchased.
Your system administrator can define an unlimited number of contract
types using the Organizations application.