Topic Overview
- Forming reserves in a contract
- Create risks in a contract
You can assign reserves and risks to each order in Alasco. In the following, we will explain the differences and special features of the two options. You can read about how to map reserves directly when creating a contract in the article Create contracts.
Reserves
Reserves in Alasco are always a total amount that you can create individually in each contract. Creating reserves allows you to reserve surplus budget from your contract units for expected additional costs in a contract. A reserve is therefore useful if you expect additional costs, but you do not yet know the exact amount and timing. Depending on the forecast settings, reserves can thus increase your contract forecast, but not yet your contract volume.
If the expected additional costs for an contract are available at a later date in the form of a change order, you can deduct the change order from the reserves previously created. This is possible when creating change orders using the “Deduct from reserves” option.
If you no longer need a reserve, you can close it. Select the contract and go to the “Reserves” tab. Create a negative reserve here to delete the initial reserve. The amount is then available again as unused budget in the contract unit.
Reserves are created and liquidated in a contract in the “Reserves” tab. You can create initial reserves during creating contracts. You create subsequent reserves using the “Edit Reserve” button in the “Reserves” tab, without changing the initial total. You can add further reserves here by stating a reason.
In the overview of reserves, all adjustments are shown separately. In cost controlling, however, the total of all reserves is shown in the “Reserves” column.
Note:
You cannot adjust the amount of reserves that have already been created. However, you can reduce the reserves that have been created by entering a negative sign.
Risks
In Alasco, a risk is also a sum of money that you can enter for a contract. It makes sense to create a risk in a contract if a certain risk of additional costs exists when the contract is executed or if unexpected additional costs may arise.
Select a contract and click on the “Risks” tab to create a risk in the contract using the “Add” button. A risk is initially created with the status “Entered”.
Risks that have been created are displayed in total in the cost control column “Risks” and have no effect on existing reserves or the contract volume. Resolve the risk when it occurs by selecting it in the contract and changing the status to “Realised”.
Then create a corresponding supplement in the contract to increase the order volume. If the risk does not materialize, you can either delete the risk or change its status to “not realised”.
You can get an overview of all risks in the project by selecting the “Risks” tab in the order overview. This tab lists the risks across all contracts.
Note:
Unlike reserves, you can edit risks and change their amounts at any time. To do this, select the risk in a contract and click “Edit”.
Unlike reserves, risks are not included by default in the real-case order forecast. The default setting in Alasco only includes risks in the worst-case order forecast. As an admin, you can change these settings in the master data under the “Forecast Settings” tab.