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How to set up Financial Limits

Lily Page
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This article is a guide to the set up and use of Financial Limits within FastDraft.

This guide contains the following topics:

Introduction

Whilst the terms of a contract rarely place any financial limits on the authority of a particular person (e.g. Standard wording of an NEC3/4 ECC contract places no limits of the value of work that can be instructed by the Project Manager), an organisation may wish to apply internal controls that restrict the value of change that can be instructed without prior approval. 

A single limit will apply to any process where the process is configured to require a limit check but will only apply where a financial value is captured (i.e. it’s currently not possible to prevent a Project Manager’s Instruction from being issued as, at the point of issue, the Instruction has no financial value assigned).

This requirement is available within FastDraft.  

Financial Limits - Contract Set Up

Contract Overview

Financial Limits can be enabled within a contract by following the below steps:

  • In the left-hand navigation panel, select Contract Overview.

contract overview.png

  • At the bottom of the page, toggle Contract Level Financial Limit Enabled on.

overview toggle on.png

  • Click Update.

update overview.png

Contract Template

In order for the Financial Limit functionality to work within FastDraft, it needs to be enabled within the contract template. The following workflows provide the option to toggle Financial Limits on/off:

  • Compensation Events - PM/Supplier
  • PM Proposed Instructions
  • PM Assessments
  • Supplier Proposals (Submissions With Quote)
  • PM Payment Certificates
  • PM Task Orders/Request For Quote
  • PM Project Orders/Instruction To Quote

Follow the steps below to enable Financial Limits within your chosen workflows:

  • In the left-hand navigation panel, select Contract Template.

contract template.png

  • Select the Workflows tab.

workflows.png

  • Select the workflow you wish to apply the Financial Limits functionality to, then select the Workflow tab.

submissions with quote.png

  • Within the pop-up, toggle Financial Limit Enabled on. 

workflow configuration.png

  • Select Update Workflow, then Update Workflow Group, then click the blue Update button. 

Financial Limits - Contract User Level

Summary

It’s currently possible to add a financial limit to a Company User that will apply to that user for all contracts to which the user has been added as a Contract User. In most cases that’s effective and the most efficient way to capture a limit (i.e. a single limit per user based on the fact the user will have a single limit of delegated authority set by their company). However, in some cases an individual user may act on behalf of multiple joint ventures and/or in different roles that may require the user to have different financial limits that apply on different contracts. This capability would also be useful in cases where a contract currency differs from the currency of the users limit as it would enable contract limits to be set in the currency of the contract (thereby avoiding the complexity of currency conversion).

FastDraft Set Up

  • In the left-hand navigation panel, select Companies. 

Companies.png

  • Select the Company, then select Company Users.

Company Users.png

  • Select the user, then toggle Apply Financial Limits on. 

Apply financial limit.png

  • Enter the financial limit, select which currency is applicable, then click Update. 

Set financial limit.png

Financial Limits - Contract Level

Summary

In most cases, assuming each user has a single limit of delegated authority set by their company, assigning a single limit to each company user will remain the most efficient way to operate. However, in some scenarios it may be useful to capture a separate limit at contract level (e.g. an individual user may act on behalf of multiple joint ventures and/or in different roles that may require the user to have different financial limits that apply on different contracts or the contract may be in a different currency to the user’s company limit).

Where financial limits are enabled, it’s now possible to override the company level limit and optionally set financial limits at a contract level where necessary.

FastDraft Set Up

  • In the left-hand navigation panel, select Contract Users.

contract users.png

  • Select Add User.

add user.png

Note: Once a user has been added to a contract they cannot be edited; if you wish to add Financial Limits to an existing contract user you will need to Remove them, then re-add them.

  • In the Add Contract User pop-up, enter the Financial Limit amount and currency. 

add contract user financial limit.png

  • Once you are done, select Save.

Within the Contract Users register you will be able to see each user's Financial Limit within the columns below:

contract user table columns.png

Note: Contract Financial Limits will override Contract User Financial Limits - for example if you are adding a user, who already has a £7500 limit at a user level, to a contract with a £5000 limit, their Financial Limit within the contract will be £5000 not £7500, or vice versa. 

Financial Limits Validation

If a user with an applied Financial Limit tries to submit a notice, or approve a notice, that involves a quote where the value is above their Financial Limit, the below validation will appear and their submission will not be completed.

validation message.png

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