Payable Amendments to Zero Dollar Contracts

Category: Contracts

Payable amendments to zero dollar contracts are not transported into IRIS for payable purposes. Payable amendments to zero dollar contracts are rare and primarily happen with hotel contracts and memorandums of understanding (MOU).  If you have a hotel contract with contingency clauses, such as penalties for not meeting a room block or fees related to cancellation, it is best to record the contract as a payable contract.  The payable amount would be the amount of the contingency payment.  This allows the contract to be transported into IRIS for payable purposes and reduces the need to process amendments later.  Likewise, if a statement of work is going to be added to a MOU, the contract should be recorded as a payable contract or the subsequent statement of work should be entered as a stand-alone payable contract rather than as an amendment to a zero dollar MOU.

 

Questions may be directed to the Office of Procurement Services at 865-974-3311.