904
This issue has been reported as far back as 5.5 and still appears to be a problem?
When I change the original qty 120, unit rate 100 and amount 12,000 via subcontract change order by
qty -120, unit rate 100 and amount -12,000, the resulting values in subcontract is 0,100,0.
Subcontract rate is not adjusted at all.
I will appreciate any input to correct this.
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Thank you for the giving such a complete answer Erich. My example was not the best. I should have used rate of -100 but I understand what you are saying, thank you.
I don't think I really catch this.
You are saying:
Still, if the change order was the following:
Still the rate wouldn't change. Anyhow, it's an expected behavior that that the rates in the contract lines don't get changed by applying change orders. It's not a bug. I know this is annoying, since there in fact is a rate cell to fill in the change order. One may ask what on earth is it for since it doesn't get carried to the main subcontract.
The problem of changing the rate in the middle of the subcontract is that you may have already payed some of the units.
Imagine you contract 70 surveillance cameras at $200.00 each one. Time passes and the contractor has already installed 30 cameras, you payed the according $6,000 and now the contractor says the price is $210.00. What happens with the already installed 30 ones? The contractor installed the 30 cameras and took your money at the original $200.00 price, so he/she kind of accepted that was the price. If the agreement is to apply the new $210 rate only to the remaining 40 cameras in essence the contract now contemplates two lines: 30 cameras as $200 and 40 at $210 each. You should apply a change reducing the original units keeping the rate and create a new line for the remaining units at the new rate. If you only go and change the original rate cell, you loose track of the previous payments.
If the agreement is to apply the new price backwards to all the cameras, you should still add a new line to the subcontract 70 units at $10.00 saying "Sep 29th Overprice agreement". This way the already payed $6,000 still makes sense with the original line data.
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