You have turned on "Large Displacement" in the Static Study properties? I think this will work to solve contact, as long as there is not a lot of sliding contact and the direction of the surfaces and their loads stay in roughly the same orientation both before and after the contact has taken place.
I have attached an edition of the COSMOS Companion that's all about contact, there are about 20 such going into other topics of SolidWorks Simulation too you can Google it and find them with a little searching. They are fan-tas-tic! Because their are short, to the point, no fluff and all information.
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