Contract value

How much is my order currently worth?

The answer may seem obvious at first: as much as the individual items add up to. However, the value often changes as the job progresses: certain items are added, others are deleted. Some work takes longer than expected, others are completed more quickly. Depending on the type and scope of the item, the contract value can change considerably as a result. Particularly in the case of duration items, it is often the case that the contract value changes in the course of processing.

To take this into account, projectfacts always shows three details in orders, “net”, “gross” and the “contract value”. Net means the sum of all order items as they were originally created. Gross adds the value added tax to this amount. The contract value also takes into account which amounts have already been settled. This means that the contract value can never fall below the net amount. If, for example, more revenue was generated with an item than originally ordered, projectfacts corrects the contract value upwards by the corresponding difference amount.

Two example orders

We assume a service order with two expense-dependent positions. The order is validated as follows:

If the order is settled as originally planned, the contract value is always equal to the net amount. In this case, there are no surpluses for any item (see example A).

Example A

In example B, we assume that the first order item causes more work than originally assumed. Position 2, on the other hand, was only partially settled. The contract value now corresponds to the sum of item 1 including additional costs (8,400 €) and item 2 in the original amount (4,000 €).

Example B

The contract value thus indicates the total revenue to be expected if …

• no further cost overruns occur and
• all other items are invoiced as originally planned.

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