Adding a Contract

Introduction

Real Estate Manager allows you to manage a wide range of contracts associated with an asset, including leases, sub-leases and maintenance or service agreements. Contracts are configured in the Administration workspace and are defined by:

Contract Category – a group of contracts with similar characteristics.
Contract Type – a single contract defined within a Contract Category.

For example, a Lease Contract Category could include office leases, parking leases and subleases. A Service Contract Category might include security contracts and janitorial contracts. All contracts can be defined as payable (where payments are required to be made to a third-party for a right of use asset, or for goods and services) or receivable (where payments are received from third-parties, such as when you are sub-leasing a portion of your leased premises).

Each Contract Type can have Custom Clause Groups and Data Fields configured in the Administration workspace. This allows you to define the clauses and data fields most relevant to your business.

Adding a Contract within the User Interface

From the Top NavBar, select Management and then Assets.
In the Action Panel, click the Expand Tree icon to display the Asset you want to add a contract to.
Select the Asset. The Summary tab for the Asset displays.
Click on the Contracts tab.
Click the appropriate contract direction, either Payable Contracts or Receivable Contracts.
Click Add Contract.
In the Create New Contract pop-up, verify the correct Contract Directions.
From the Contract Category drop-down, select the appropriate Contract Category.
From the second drop-down, select the Contract Type.

Note: A Contract Category and Contract Type cannot be added from the Contracts tab within Asset Management. You must configure these through the Administration workspace.
Select the Contract Start and Contract End dates by clicking in the fields or the Calendar icon and selecting the appropriate dates.

Note: If you do not select a Contract End Date, it will default to one year from the Contract Start date.
Click Create.

Entering Contract Details

In the Contract Details section, enter information that describes the contract in the Description field.
Enter the unique identifier for the contract in the Schedule Number field.

Note: If you are synchronizing with LeaseAccelerator’s Lease Accounting Manager, this is the same Schedule Number that you will see in that part of the user interface.
From the Status drop-down, select Current to indicate that the contract is active, Divestment to indicate the contract is being held for disposition, or Draft to indicate that the contract is not completed. To add a new Status, enter the label in the Status field and click the Add and select? link.
From the Currency drop-down, select the monetary currency to be used for making (or receiving) payments under the contract. This is also known as the transactional currency.
To add a Landlord, click the Search icon in the Landlord field.
To view all Contacts, click to uncheck the Limit Search by Funder, Vendor checkbox.

Note: If the Select Contact pop-up does not display the desired Landlord, you can add a Contact.
Click select for the Landlord related to the contract you are adding.
Click Select Contact.
Follow similar steps for the Lessee field, to add a Lessee.
Complete other fields as necessary. If you are entering a lease contract, ensure you indicate the Lease Accounting Contract Type.
If this is a partial building lease, ensure you indicate.
Enter additional information about the contract in the Notes field as needed. This is a free form text field that allows you to quickly capture important details about the contract.

Guarantees

From the Guarantee Type drop-down, select the method for funding the Guarantee.
In the Amount field, enter the monetary value of the Guarantee.
To select the Guarantor, click the magnifying glass icon.
To view all Contacts, click the uncheck the Limit Search by Vendor check-box.
Click select for the Guarantors related to the contract you are adding.
Click Select Contract.
Click Save to add the Guarantee to the contract.

Adding Files and Notes to a Contract

To add files, such as documents or spreadsheets, click Manage attached files.
Right-click the folder into which you want to upload a file and select Upload New File.
In the Description field, enter information about the file.
Click Browse and select the file you want to upload.
Click Open.
To set an expiration date for the file, click the Expiry Date field or the Calendar icon and select the date on which the file expires.
In the Notes field, enter any additional information about the file.
Click Save to upload the file.

Custom Fields

If you added any custom fields when configuring the Contract Type, those fields will appear in sections below the Details section. These may vary, depending on the Contract Type. You may only add custom fields in the Administration workspace and not while in Asset Management. For more information on custom fields, please see .

Lease Incentives

To add a Lease Incentive (such as a Tenant Improvement or Moving Allowance), in the Incentives section, click Add New Incentive.
Click the Date field or the Calendar icon to display the calendar and select the appropriate date.
From the Type drop-down, select Paid on Behalf of Lessee if the Incentive is paid by a party other than the Lessee, or select Paid to Lessee if the Incentive is paid to the Lessee.
Click the Description field and enter information to describe the Incentive.
In the Amount field, enter the monetary amount of the Incentive.
Click Save and the Incentive will be added to the contract.

Initial Costs

To add Initial Costs, click Add New Initial Cost in the Initial Costs section.
From the Type drop-down, select Commission if the Initial Cost is a brokerage commission, or Payment to Prior Tenant to Terminate Early if the Initial Cost is a fee paid to compensate the prior tenant for vacating the premises early.
Enter information about the Initial Cost in the Description field.
In the Amount field, enter the monetary amount of the Initial Cost.
Click Save to add the Initial Cost to the contract.

Make Good Costs

To add Make Good Costs, first indicate the Date of Obligation by entering the date or clicking the Calendar icon and selecting the appropriate date.
Click Add New Make Good Cost.
From the Type drop-down, select Cost to Dismantle or Remove (per Agreement) if the Make Good Cost is to remove any renovations made or Equipment-Refurbishment if the Make Good Cost is related to equipment or Real Estate – Return to Original Condition if the Make Good Cost is for removing renovations and returning the space to its original condition.
Enter information about the Make Good Cost in the Description field.
In the Amount field, enter the monetary amount of the Make Good Cost.
Click Save to add the Make Good Cost to the contract.

Break Termination Penalties

To add a Break Termination Penalty, click Add New Break Termination Penalty in the Break Termination Penalties section.
Enter information about the Break Termination Penalty in the Description field.
In the Amount field, enter the monetary amount of the Break Termination Penalty.
Click Save to add the Break Termination Penalty to the contract.

Contract Initial Term and Options

To add the Contract Initial Term and Options, go to the Contract Term and Options section.
In the Term field, update the default value of the Initial Term as needed.
Click the Calendar icon and select the beginning and ending dates for the Term Range.
Click Edit Notes to add information about the Contract Initial Term and Options.
Enter information in the Edit Notes pop-up as necessary and click Update when finished.
To add a Contract option, click Add Option and a new row will appear in the Contract Term and Options section.
In the Term field, update the default value of Option 1 as needed.
Click the Calendar icons and select the beginning and ending dates for the Term Range.
Click the Calendar icons and select the beginning and ending dates for the Option Exercise Dates.
From the Term/Option State drop-down, select the status of the option as Pending if the option has not been invoked, In Progress if the option is being invoked, but not yet completed, or Exercised if the option has been fully invoked.
To add information about the option, click Edit Notes and you may enter relevant information in the pop-up and click Update.

Reviews and Adjustments

To add Reviews and Adjustments, use the Click here link to add the first Commencing Costs.
To define the Contract Costs for both a Recurring and Ad Hoc Contract and to have recurring invoices, start in the Recurring Invoice section.
In the Vendor field, click the magnifying glass to select the correct Vendor.
Click Select next to the correct company.
Click Select Contact.
Next enter an appropriate Description.
Select the appropriate Invoice Type from the drop-down.

Note: Invoice Types are defined and configured in the Administration workspace within the Invoice Types tile.
Select the appropriate Invoice Group from the drop-down.

Note: Invoice Groups are defined and configured in the Administration workspace within the Invoice Types tile and are used to organize custom fields defined for a particular Invoice Type.
Verify the correct First Invoice Date, change as necessary.
Verify that the Then Every field and drop-downs are accurate for this cost.
Verify that the Then Every field and drop-downs are accurate for this cost.
Click the plus sign to add a cost line item.
In the Label field, enter a title for the Contract Cost you are defining, such as Base Rent.
The asset listed is associated with the contract you are entering. Click the Asset drop-down to select another Asset if necessary. If you want to include Archived Assets in the drop-down, check the box to include Archived Assets.
Click the Category field to display the drop-down for configured Cost Categories for this Contract Type and select the appropriate category.
The Jurisdiction field automatically displays the country and province or state of the Asset’s address. To select a different Jurisdiction, you may click in the field and choose from the drop-down.
Click the Tax Rate field to display the drop-down and select the country or province that assesses taxes.
In the First Payment field, ensure that the date is accurate. It will auto-populate with the Contract Start Date.
In the Payment field, enter the amount of the periodic payment and click the Calculator icon.
The Total per Annum Excluding Tax (Total P.A. (Ex Tax)) field updates with the total payable amount throughout one year from the First Payment Date.

Note: If the Tax Rate is updated, you must click the Calculator icon again in the Payment field to ensure accurate tax amount is calculated in the Tax Amount field. Similarly, if the Payment amount is edited, you should click the Calculator icon again to ensure the accurate tax amount is calculated in the Tax Amount field.
In the Tax Amount field, you can enter a Tax amount or use the pre-filled Tax Amount if applicable. Click the Calculator icon to ensure accurate calculation of the total tax amounts.

Note: The pre-filled Tax Amount appears when the use clicks on the Calculator icon again in the Payment field.
Click the Paid field to display the drop-down and select In Advance if the payment is made at the beginning of each period, and In Arrears if the payment is made at the end of each period.
Click the Every field to display the drop-down and select the schedule for payments.
If you have additional Commencing Costs to add, you may click the plus sign in the Recurring Invoice sections and repeat steps 13-22.
In the Notes field, enter information about the Contract Costs, as needed.
Once all Commencing Costs have been entered, click Okay to save.

Adding Reviews or Adjustments

To add Reviews and Adjustments after the Commencing Costs have been entered, click Add Review in the Reviews and Adjustments section and see below for steps for each kind of review.

Graphical user interface, text, application

Description automatically generated

Fixed Amount – Payment based on a fixed payment schedule
Fixed % - Payment based on an interest rate or index basis
Market – Payment based on evaluation of current market
CPI – Payment based on a change in the Consumer Price Index
Cost Adjustment – A payment adjustment not in the original contract

Fixed Amount

To add a Fixed Amount Review, select Fixed Amount Review and click Okay.
Click the Calendar icon and select the Date of the Review.
From the Review State drop-down, select Pending if the review is not yet initiated or select In Progress if the review is underway.
Click the Add Multiple Reviews? checkbox if more than one review is planned.
In the Recurrence Details section, enter the number of reviews to be performed in the Number of Repeats field.

Note: Do not count the payment due on the date you entered as the Review Date. The number of repeats will start with the next payment. Example: 12 months of same payment every month, Number of Repeats = 11.
In the Repeat Every field, enter the number of months or years selected from the drop-down to establish the Review Schedule.
In the Costs to be Reviewed section, click Select Costs to Review.
Click the checkboxes for Costs to Review and click Okay.
In the Notes field, enter information as needed.
Click Okay and the review will be added to the Reviews and Adjustments section.

Fixed % Review

To add a Fixed % Review, select Fixed % Review and click Okay.
Click the Calendar icon and select the Date of the Review.
From the Review State drop-down, select Pending if the review is not yet initiated or select In Progress if the review is underway.
Click the Add Multiple Reviews? checkbox if more than one review is planned.
In the Recurrence Details section, enter the number of reviews to be performed in the Number of Repeats field.

Note: Do not count the payment due on the date you entered as the Review Date. The number of repeats will start with the next payment. Example: 12 months of same payment every month, Number of Repeats = 11.
In the Repeat Every field, enter the number of months or years selected from the drop-down to establish the Review Schedule.
In the Costs to be Reviewed section, click Select Costs to Review.
Click the checkboxes for Costs to Review and click Okay.
In the Fixed % field, enter the percentage applied to the review.
In the Notes field, enter information as needed.
Click Okay and the review will be added to the Reviews and Adjustments section.

Market Review

To add a Market Review, select Market Review and click Okay.
Click the Calendar icon and select the Date of the Review.
From the Review State drop-down, select Pending if the review is not yet initiated or select In Progress if the review is underway.
Click the Add Multiple Reviews? checkbox if more than one review is planned.
In the Recurrence Details section, enter the number of reviews to be performed in the Number of Repeats field.

Note: Do not count the payment due on the date you entered as the Review Date. The number of repeats will start with the next payment. Example: 12 months of same payment every month, Number of Repeats = 11.
In the Repeat Every field, enter the number of months or years selected from the drop-down to establish the Review Schedule.
In the Costs to be Reviewed section, click Select Costs to Review.
Click the checkboxes for Costs to Review and click Okay.
In the Cap% field, enter the maximum percentage change.
In the Collar % field, enter the minimum percentage change.
In the Est % field, enter an estimated percentage change.
In the Plus % field, enter an optional flat plus percentage.
In the Notes field, enter information as needed.
Click Okay and the review will be added to the Reviews and Adjustments section.

CPI Review

To add a CPI Review, select CPI Review and click Okay.
Click the Calendar icon and select the Date of the Review.
From the Review State drop-down, select Pending if the review is not yet initiated or select In Progress if the review is underway.
Click the Add Multiple Reviews? checkbox if more than one review is planned.
In the Recurrence Details section, enter the number of reviews to be performed in the Number of Repeats field.

Note: Do not count the payment due on the date you entered as the Review Date. The number of repeats will start with the next payment. Example: 12 months of same payment every month, Number of Repeats = 11.
In the Repeat Every field, enter the number of months or years selected from the drop-down to establish the Review Schedule.
In the Costs to be Reviewed section, click Select Costs to Review.
Click the checkboxes for Costs to Review and click Okay.
From the CPI Region drop-down, select the Consumer Price Index to be used for the review.
In the Cap% field, enter the maximum percentage change.
In the Collar % field, enter the minimum percentage change.
In the Est % field, enter an estimated percentage change.
In the Plus % field, enter an optional flat plus percentage.
In the Notes field, enter information as needed.
Click Okay and the review will be added to the Reviews and Adjustments section.

Cost Adjustment

To add a Cost Adjustment select Cost Adjustment and click Okay.
Click the Calendar icon and select the date the adjustment is effective, then click Continue.
If the Cost Adjustment Review is for an Ad Hoc contract, the costs to be adjusted display in the Other Actioned Costs section.
If the Cost Adjustment Review is for a Recurring contract, the costs to be adjusted display in the Recurring Invoice section.
In the Payment field, enter the Adjusted Cost.
Click Okay and the Adjusted Cost displays in the Reviews and Adjustments section.

Contract Break Options

To add a Contract Break option, use the Click here link in the Contract Break Options section.
In the Add Break Option pop-up, click the Earliest Date and Latest Date Calendar icons and select the dates when the break option can be exercised.
From the Break Fee drop-down, select the method used to calculate the cost for exercising the break option.
In the Value field, enter the amount of the break fee.
Enter any relevant comments.
Click Save and the Break Option will be added to the Contract.

Predefined Ad-hoc Clauses

To add a Predefined Ad-hoc clause, click Add Ad-hoc Contract Clause in the Predefined Ad-hoc Clause section.
In the Contract Clause pop-up, click on the Category drop-down and select Land if the clause relates to the site, or Property if the clause relates to a building.
From the Clause drop-down, select the type of clause you want to add.
In the Section field, enter the section of the contract where the clause exists.
In the Key Dates section, click the Calendar icon for the Earliest, Latest, and Reminder dates to which the clause applies or can be exercised.
In the Documentation section, enter the name of any supporting documentation in the Document field, the page number in the Document Page # field, and the page number for a document in PDF format in the PDF Page # field.
In the Structure section, enter the text for the clause in the Clause Text field and other supporting information in the Interpretation field.
To add an Amendment, in the Amendment section, click Add Amendment.
In the Add Amendment pop-up, click the Calendar icon and select the Amendment Date.
In the Amendment Details field, enter the text of the amendment or any other relevant comments.
Click Save and the amendment will display in the clause.
To record the exercise of a clause, in the Trigger History section, click Add Record of Clause Triggering.
In the Triggered On field, click the Calendar icon and select the date the clause was exercised.
In the Reason and Outcome fields, record information about the clause trigger.
Click Confirm and the information displays in the clause.
Click Save and the contract clause will save and display with the contract.

Saving the Contract

Once all of the contract details have been entered, including the Commencing Costs in the Reviews and Adjustments section, you may save the contract. Scroll down to the bottom of the workspace and click Save Contract. Record any notes in the pop-up and click Okay.

Once the contract is saved, you will be taken back to the Contracts tab workspace.