Video 23 of 26 ยท Move the Money

Provisional Sums: Allowances, Drawdowns and Over-runs

Allowances, drawdowns and over-runs in Deep Space

← Variations, End to EndProgress Claims to Your Client →
Watch the Provisional Sums: Allowances, Drawdowns and Over-runs video
Watch the Provisional Sums: Allowances, Drawdowns and Over-runs video on YouTube
Watch the video walkthroughhttps://youtu.be/KLvBkDQJ1dE

A provisional sum is an allowance in the contract for work that isn't fully defined yet, like signage or feature lighting. In this walkthrough, you'll see how the Deep Space web app tracks the allowance, what you spend against it, and what happens when you go over.
The full series: 26 videos in Builder's Wheel order (Win, Set Up, Build, Move the Money, Govern)
  1. Build an Estimate and Proposal Win
  2. Multi-Trade Tender Win
  3. Set Up Your Workspace Set Up
  4. Add Users and Give Them Access Set Up
  5. Company Settings: Get Your Documents Ready Set Up
  6. Connect Xero and Map Your Cost Codes Set Up
  7. Folder Templates and Project Documents Set Up
  8. Document Templates vs Contract Templates Set Up
  9. Email Templates and Sending Documents Set Up
  10. Head Contract Setup Set Up
  11. Build Your Programme Set Up
  12. Subcontracts: Award to Executed Set Up
  13. DS Site: Invites, Inductions and Site Sign-on Build
  14. Drawings to Site and Subbies Build
  15. Run Your Programme on Site Build
  16. RFIs, Notices and the Project Inbox Build
  17. Inbox to Xero: How the Money Flows Move the Money
  18. Purchase Orders Move the Money
  19. Process Supplier Invoices Move the Money
  20. Subbie Claims: Inbox to Payment Schedule Move the Money
  21. Retentions and Security Move the Money
  22. Variations, End to End Move the Money
  23. Provisional Sums: Allowances, Drawdowns and Over-runs Move the Money
  24. Progress Claims to Your Client Move the Money
  25. Budget and Forecasting Govern
  26. Delegation of Authority Govern

Allowances and drawdowns

Every provisional sum has two parts. The allowance is the amount priced into the contract sum. Drawdowns are the actual
Every provisional sum has two parts. The allowance is the amount priced into the contract sum. Drawdowns are the actual spend you record against it. You'll find them on the head contract, under the Provisional Sums tab, and in the Provisional Sum Register.

Set the margin basis

Start in Admin, Company Settings, Commercial. The house default decides how your margin applies to drawdowns. On actual
Start in Admin, Company Settings, Commercial. The house default decides how your margin applies to drawdowns. On actual cost applies margin to the full actual cost. On variance only grosses up the difference over the allowance. Each head contract can override it, and the basis locks at the contract's first approved drawdown.

Create the allowance

Allowances usually come straight from the estimate. Any line typed as a provisional sum is seeded when you push the budg
Allowances usually come straight from the estimate. Any line typed as a provisional sum is seeded when you push the budget. You can also add one with New Allowance in the register, or Add Provisional Sum on the head contract. A new allowance starts as Unapproved.
Check the lines while it's unapproved. Each line carries a cost code. Once you approve the allowance, the lines are fixe
Check the lines while it's unapproved. Each line carries a cost code. Once you approve the allowance, the lines are fixed on the contract.

Approve onto the contract

Click Approve Allowance. It now counts toward the contract sum, and you can start adding drawdowns.
Click Approve Allowance. It now counts toward the contract sum, and you can start adding drawdowns.

Record a drawdown

Click Add Drawdown. The header shows what's left in the allowance and the margin rate. Enter the cost, and the cost code
Click Add Drawdown. The header shows what's left in the allowance and the margin rate. Enter the cost, and the cost code comes from the allowance. The footer shows the sell, the margin, and what remains after this drawdown.
A new drawdown is a Draft. Drawn stays at zero, because only approved drawdowns move the money.
A new drawdown is a Draft. Drawn stays at zero, because only approved drawdowns move the money.
If your workspace routes drawdowns through Delegation of Authority, clicking Approve submits it for internal approval. T
If your workspace routes drawdowns through Delegation of Authority, clicking Approve submits it for internal approval. The final approver's sign-off approves the drawdown.
Approvers find it in My Approvals, like any other record.
Approvers find it in My Approvals, like any other record.
Once it's approved, Drawn and Remaining update in the register.
Once it's approved, Drawn and Remaining update in the register.
Open the allowance to see the Adjustment Summary: the original allowance, the actual cost, your margin, and the net adju
Open the allowance to see the Adjustment Summary: the original allowance, the actual cost, your margin, and the net adjustment to the contract sum. While you're inside the allowance, the net adjustment stays at zero.

Over-runs

If a drawdown takes you over the remaining allowance, Deep Space warns you before you create it. A head contract variati
If a drawdown takes you over the remaining allowance, Deep Space warns you before you create it. A head contract variation is raised for the over-run when the drawdown is approved.
Here, the second drawdown took Drawn past the allowance. Once it was approved, the variation was raised automatically, r
Here, the second drawdown took Drawn past the allowance. Once it was approved, the variation was raised automatically, ready to go to the client.
The allowance lists every variation it raised, and the Adjustment Summary carries the over-run as the net adjustment to
The allowance lists every variation it raised, and the Adjustment Summary carries the over-run as the net adjustment to the contract sum.

Close out

When the work is done, close the allowance from the head contract. Any unspent allowance is credited back through a head
When the work is done, close the allowance from the head contract. Any unspent allowance is credited back through a head contract variation, so the contract sum reflects what was actually spent.

Budget and claims

In the Budget Register, turn on Approved PS Cost and Pending PS Cost under Column/Filter to see provisional sum spend by
In the Budget Register, turn on Approved PS Cost and Pending PS Cost under Column/Filter to see provisional sum spend by cost code.
On the head contract's schedule of values, provisional sums sit in their own section with a subtotal.
On the head contract's schedule of values, provisional sums sit in their own section with a subtotal.
When you raise a progress claim, approved allowances appear in a Provisional Sums group, ready to claim this period. A v
When you raise a progress claim, approved allowances appear in a Provisional Sums group, ready to claim this period. A variation raised by an over-run sits with the variations, and you can claim it once it's approved.

Common questions

I can't claim the provisional sum.

Check the allowance is approved onto the head contract. Unapproved allowances don't count toward the contract sum, so they don't show on the claim.

I can't claim the provisional sum.
Check the allowance is approved onto the head contract. Unapproved allowances don't count toward the contract sum, so they don't show on the claim.

Drawn isn't moving.

Only approved drawdowns count. Approve the draft, or check My Approvals if it's waiting on someone.

Drawn isn't moving.
Only approved drawdowns count. Approve the draft, or check My Approvals if it's waiting on someone.

We went over the allowance.

Approve the drawdown. Deep Space raises the head contract variation for the over-run, then it goes through your normal variation approval.

We went over the allowance.
Approve the drawdown. Deep Space raises the head contract variation for the over-run, then it goes through your normal variation approval.

The margin looks wrong.

Check the margin basis on the head contract. It locks at the first approved drawdown. A single allowance can be overridden under Advanced, with a reason.

The margin looks wrong.
Check the margin basis on the head contract. It locks at the first approved drawdown. A single allowance can be overridden under Advanced, with a reason.

Where do I see provisional sum spend?

In the Provisional Sum Register, or turn on the PS cost columns in the Budget Register.

Where do I see provisional sum spend?
In the Provisional Sum Register, or turn on the PS cost columns in the Budget Register.

Quick reference

Need a hand? Email help@deepspacegroup.ai

← Variations, End to EndProgress Claims to Your Client →