Contracts - Overview

Modified on Wed, 17 Sep at 2:47 AM

Linarc empowers contractor companies to create and manage comprehensive budget contracts for their projects directly within the platform.

Contracts include a detailed cost breakdown of work items, structured into line items.
Each line item consolidates cumulative values for quantities, and cost details of each cost type.
Similar work is grouped under standardized cost codes, organized by project phase, activity, or location.
The structured contract establishes the financial baseline, enabling precise budget control and continuous monitoring of financial performance.
It drives essential financial calculations such as progressive billing, invoicing, and financial metrics, keeping project planning and execution seamlessly connected.

Note: Linarc currently supports the contract, progressive billing and invoicing feature for subcontractors managing their projects independently as stand-alone projects. Support for integrated projects—where multiple stakeholders such as general contractors, subcontractors, and owners collaborate—will be introduced soon.
What are 'Stand-alone' and 'Integrated' projects?
Stand-alone Project - A stand-alone project is managed independently by a single contractor without involving other subcontractors on Linarc. In this setup, the contractor is solely responsible for planning, executing, and tracking progress. For example, a subcontractor may take on a specific scope of work directly from the project owner or from a general contractor and manage that scope as a complete project within Linarc. The entire workflow—tasks, schedules, costs, and deliverables—remains self-contained under the control of that contractor.
Integrated Project - An integrated project is a collaborative setup where a general contractor (GC) oversees the entire project and coordinates with multiple subcontractors across different trades. The GC creates and manages the project in Linarc, then invites subcontractors to join and take ownership of their respective portions of work. This structure ensures that all stakeholders work in a unified environment, with shared schedules, progress updates, and cost tracking.

Schedule Integration – The Contract module allows project managers to allocate funds from contract line items directly to scheduled tasks. This ensures that each line item’s values are accurately distributed across deliverables that share the same cost codes, maintaining consistency between the contract and the execution plan.

Cost Data Tracking – During fund distribution, amounts can be allocated to specific cost types such as materials, labor, equipment, subcontractors, and overheads for each scheduled task. The Job Cost Data module then captures the actual costs incurred under each cost type for every work item. These tracked values enable accurate financial monitoring by comparing planned versus actual costs, while also powering performance reporting, interactive dashboards, and detailed project reports.

Progressive Billing and Invoicing - The Linarc automatically tracks the completion percentage of each work item and updates billable items with their current cost values based on allocated funds and task progress. At the end of each payment period, contractors can generate a payment application detailing completed work, reconcile stored material costs, and submit it for approval. Once approved, the pay app can be converted into an invoice and submitted for payment. Payments are then tracked, marked as received, and archived for accurate financial records and easy future reference.

Project managers can create and manage contracts for all project tasks through the ‘Contract’ interface.

See the following sections to know more: