Time and Materials Contracts with Upset Limits

If a project is based on a time and materials contract that has upset limits, it uses either a multiplier or a rate table with a maximum.

You can use the same revenue methods that you use for projects based on a time and materials contract without upset limits:

• Run Revenue Generation with Method B specified for the project. Usually you do this at the end of the project's billing cycle.

• Run Revenue Generation with Method W specified for the project.

• Create a user-defined method, specify it for the project, and run revenue generation for the project.

As an alternative, you can use one of these procedures to calculate accrued revenue:

• Method M (labor costs times a multiplier).

• Method P (labor costs times a percentage of completion).

• A user-defined method that refers to specific contract terms, such as the contract limit amount. Use the Subject to Max operator to specify the upset limit.