Upon award and execution of a contract, RedTeam Flex assumes all items comprising your Budget must be purchased and/or performed in order to fulfill the prime contract requirements. To facilitate the Buyout process, RedTeam tracks all of the budgeted costs as funds "At Risk," which indicates money that is expected to be spent but has not yet been allocated to a Buyout Commitment or standalone invoice.
The At Risk is automatically generated by RedTeam Flex to match the amounts in each cost code Assembly in your Estimate and any additional cost code Assemblies added to the Budget under the Budget tab.
As Purchase Orders and Subcontracts are created and executed, those dollars now contracted are no longer considered to be At Risk, so you will want to reduce the amount in the "At Risk" column of the Budget. You can do this when committing a Buyout Commitment in the Buyout tab, or directly from the Budget tab by clicking the value in the At Risk column. See further instructions below.
1. Adjust At Risk Amount on Commitment
In RedTeam, an amount remains "At Risk" until the burden of that risk is passed along via a Subcontract, Purchase Order, Employee Commitment, or vendor invoice. As Purchase Orders and Subcontracts are created and committed, those dollars now contracted are no longer considered to be At Risk, so RedTeam will automatically prompt you to reduce or remove the amount "At Risk" upon COMMITTING a Buyout Commitment (PO, Subcontract, or Employee Commitment)
If you do not Adjust the At Risk from the automatic prompt you can manually adjust it later from the Budget tab.
Steps:
Access the "Buyout" tab
Locate the Commitment (PO, Subcontract, Employee Commitment) in the list of Buyout Commitments
Click the tools icon
Click "Commit" OR click "View" then Commit from the View screen (Collaborative Console)
Adjust the At Risk in one of several ways (see below narrative for more detail on each option).
Delete the "At Risk" Item entirely: I no longer have to buy out anything for this cost code, there is no money At Risk and the difference between my Budget and my Open Commitment is loss or profit.
Adjust the "At Risk" amounts: I want to reduce or increase the amount that is At Risk, there is still more to buy for this cost code and I want to project the final cost at complete for this Budget cost code.
Leave the "At Risk" Item unchanged: Don't change anything, I want to leave the At Risk amount as it is.
Foot To Budget: Click Foot To Budget at the top. This will automatically adjust the At Risk to an amount that will add with Open and Actuals to make the Complete column equal the Budget column. Use this function with caution; If the line is already over budget, the At Risk will then become a negative amount.
Click "Save"
2. Adjust At Risk Amount from the Budget
The "At Risk" is most effectively managed from the Budget tab of your Project. This is because from here, you can see all the relevant information you need to manage what materials and services you still need to buy for the job.
Steps:
Access the "Budget" tab
Locate the value to adjust in the "At Risk" column of your Budget and click on it
Select from the options (see above narrative for more detail on each option)
Delete the "At Risk" Item entirely: I no longer have to buy out anything for this cost code, there is no money At Risk and the difference between my Budget and my Open Commitment is loss or profit.
Adjust the "At Risk" amounts: I want to reduce or increase the amount that is At Risk, there is still more to buy for this cost code and I want to project the final cost at complete for this Budget cost code.
Leave the "At Risk" Item unchanged: Don't change anything, I want to leave the At Risk amount as it is.
Foot To Budget: Click Foot To Budget at the top. This will automatically adjust the At Risk to an amount that will add with Open and Actuals to make the Complete column equal the Budget column. Use this function with caution; If the line is already over budget, the At Risk will then become a negative amount.
Click "Save"
3. Mass Update At Risk Within the Budget
You can Delete At Risk, which will zero out the at risk entries for every line of the Budget, or you can use the "Foot All Cost Codes to Budget" function, which will automatically adjusts the At Risk to an amount that will add with Open and Actuals to make the Complete column equal the Budget column. Use this second option with caution; If the line is already over budget, the At Risk will then become a negative amount.
Steps:
Click the Budget Tab of the project
Click the More button (three dots) on the top right
Click “Delete At Risk” to zero all At Risk entries, or click “Foot All Cost Codes To Budget” to auto-calculate all At Risk
