A Time and Materials Not to Exceed (T&M NTE) contract includes a cap that represents the maximum amount that can be charged by the contractor. This type of contract or clause can help to increase contractor efficiency because the contract price is limited to the cap amount, no matter how long the project takes or how high the materials costs run..

User will create new project with the project group of fee type “time and expense NTE” and when the user opens the new fee management form, the line with fee type “Time and expense NTE” will get automatically created. Once the user updates “Fee budget” then a corresponding fee forecast line will get automatically created on fee forecast form and billing rule will get automatically created on project contract form with the Fee budget amount.

Projects

Fee forecast

When the user defines Fee budget on the Fee management form, automatically fee forecast line with defined Fee budget amount will get created on fee forecast form.

Go to Project management and accounting > Projects > All projects > Fee forecast

Billing rule

When the user defines Fee budget on the Fee management form, automatically billing rule line with defined Fee budget amount will get created on project contract form. Also the categories are added to chargeable categories.

Go to Project management and accounting > Projects > Project contracts

Project invoice proposal

User will go ahead and post the hours and expenses to the project. Once the transactions exceeds the budgeted fee amount, a negative fee journal will be created automatically for the differential amount while creating the invoice proposals.

Go to Project management and accounting > Projects > Project invoice proposal

Last modified: Apr 03, 2020

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