Manage Variation Orders (VO) and Contractual Claims

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Manage Variation Orders (VO) and Contractual Claims within SmartERP.

Scope change notifications, consultant variation order approvals, rate analysis for new items, and Extension of Time (EoT).

{screenshot:variation-orders-and-claims-overview-dashboard}

2. Prerequisites & Security Access Groups#

• Required Modules: project, smarterp_project_governance, hr_timesheet
• Security Groups:
  • Project User (Technical ID: project.group_project_user)
  • Project Administrator (Technical ID: project.group_project_manager)
  • Timesheet Approver (Technical ID: hr_timesheet.group_hr_timesheet_approver)
• Master Data Dependencies: Project master records, milestone stages, work breakdown structures (WBS), bill of quantities (BoQ), and employee billing cost rates.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the Projects app icon.
4. From the top navigation bar, open Projects → Dashboard → My Tasks / All Projects; Timesheets → Timesheets.

{screenshot:variation-orders-and-claims-app-switcher-navigation}

Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Project / Task Name (Mandatory): Descriptive title of work package or milestone deliverable
   • Assigned Project Team (Mandatory): Lead project manager and operational contributors
   • Planned Dates (Mandatory): Scheduled commencement and milestone completion deadlines
   • Customer / Stakeholder (Mandatory): Client partner linked to project contract and invoicing terms
3. Configure optional operational parameters and localized tags as required:
   • Analytic Cost Center (Optional): Dedicated project accounting account for expenditure tracking
   • Bill of Quantities (BoQ) Line (Optional): Specific contractual BoQ item code for construction tracking
   • Milestone Billing Weight (Optional): Percentage of contract value tied to milestone acceptance
4. Click the Save icon in the control bar to commit the record.

{screenshot:variation-orders-and-claims-record-creation-form}

Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (New / Scoping → In Progress → Review / Testing → Completed → Archived).
• Ledger & System Impact: Timesheet confirmations and project purchases post direct expenditures to the project analytic account, enabling real-time cost vs. revenue margin analysis.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

{screenshot:variation-orders-and-claims-transaction-processing-state}

Managing Scope Variations in Construction#

Under MoWUD and FIDIC contract conditions, any client instruction that alters original architectural drawings, adds structural volume, or substitutes material specifications constitutes a Variation Order (VO).

Procedure: Registering a Variation Order#

1. Navigate to Projects > Construction > Variation Orders and click New.
2. VO Reference: VO-003: Foundation Redesign Due to Soil Hard Strata Depth.
3. Contract Clause Reference: e.g., FIDIC Clause 13.1 (Right to Vary).
4. Item Classification:
   • Existing BoQ Item: Quantity increase/decrease applied at existing contract unit rates.
   • New / Star Rate Item: Requires rate breakdown (Labor + Equipment + Materials + 20% Contractor Overhead & Profit).
5. Cost & Time Impact:
   • Additional Cost Impact: +4,850,000.00 ETB.
   • Extension of Time (EoT) Requested: +28 Calendar Days.
6. Attach engineer instruction letter and soil investigation test reports.
7. Upon client signature, the project BoQ budget and milestone completion dates are revised automatically.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • Project: Flag overdue milestone deadlines (project.ir_cron_overdue_tasks): Runs daily to notify project managers of pending schedule delays
  • Timesheets: Send unsubmitted reminder alerts (hr_timesheet.ir_cron_timesheet_reminder): Runs weekly on Friday afternoon to remind team members
• Custom Print Templates & Reports:
  • Project Status & Milestone Execution Scorecard
  • Interim Payment Certificate (IPC) for Construction
  • Project Timesheet & Resource Utilization Summary
  • Earned Value Management (EVM) Financial Report
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#