Implementation tips for apartment, condo, or hotel renovation projects using estimates and multi-prime contracts
Business overview
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One project that includes one or more buildings, each with multiple units (for example, apartments, condos, or hotel rooms).
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Multiple unit models or floor plans.
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Units are released for renovation individually and not in sequence (for example, Building 1 – Unit 5; Building 3 – Unit 7).
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All work is tracked under a single project, but managed at the unit level.
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Billing is performed at the unit level only.
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The contractor requires budget tracking by unit and job cost code (for example, Building 1 – Unit 5 - Electrical, Drywall, Paint).
Implementation plan
Make sure all firms involved on the project are added in the Contact Management module.
For example:
- Building owner (client)
- Architect
- Suppliers
- Subcontractors
Learn more about adding firms to the Contact Management module.
Create one project record in Sage Construction Management representing the entire work.
For example:
- Project number: 23456
- Project title: Huntington Beach Hotel
Learn more about creating projects manually in Sage Construction Management.
The following companies must be added to the project directory:
- Building owner (client)
- Your firm
- Architect
- Suppliers
- Subcontractors
Learn more about adding companies to the project directory.
Create a separate estimate for each model, floor plan, or style.
Project estimates:
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Floor Plan A
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Floor Plan B
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Floor Plan C
Standardize the estimate Work Breakdown Structure (WBS)
Each floor plan estimate must use a consistent WBS structure, with identical cost codes (for example, 01, 02, 03). If WBS codes differ across estimates, the Contract Setup Wizard will create duplicate job cost codes.
Example of standard WBS for all floor plan estimates:
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01: Electrical
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02: Plumbing
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03: Drywall
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04: Painting
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05: Flooring
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06: Cabinets
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07: Appliances
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08: Furnishings
Ensure that cost codes are formatted consistently across all estimates.
Incorrect example:
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Floor Plan A WBS → 01 Electrical
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Floor Plan B WBS → 01000 Electrical (must be 01 to match other estimates)
Learn more about estimates.
When the owner releases units for renovation or construction, use the Contract Admin Setup Wizard to create the job cost codes, prime contract, and budgets for each unit. If there are 100 units, this wizard will be used 100 times. When creating the prime contract for a unit, ensure you reference the appropriate model estimate. It's recommended to use the building/unit abbreviation as the prime contract number, as shown below.
Example estimate WBS and job cost code structure
The job cost code structure shown below is provided as an example to illustrate a method for tracking costs. This structure can be fully customized to align with your organization’s preferred approach.
In this example, a single owner grouping code (for example, a contract) is used to roll up prime invoice details. Alternatively, you can print prime contract invoices by job cost code to provide a more detailed breakdown. In this case, owner grouping codes might not be required.
| Order number | Job cost code | Description | Quantity | Units | Owner grouping code |
|---|---|---|---|---|---|
| 1 | 01 | Electrical | 1 | LS | Contract |
| 2 | 02 | Plumbing | 1 | LS | Contract |
| 3 | 03 | Drywall | 1 | LS | Contract |
| 4 | 04 | Painting | 1 | LS | Contract |
| 5 | 05 | Flooring | 1 | LS | Contract |
| 6 | 06 | Cabinets | 1 | LS | Contract |
| 7 | 07 | Appliances | 1 | LS | Contract |
| 8 | 08 | Furnishings | 1 | LS | Contract |
Example prime contract numbers:
- Building 1 - Unit 5 → Prime contract number: B01-U05
- Building 2 - Unit 7 → Prime contract number: B02-U07
- Building 5 - Unit 10 → Prime contract number: B05-U10
Example prime contracts structure:
- Prime contract number: B01-U05
- POs and bills
- Subcontracts, SCOs, and sub invoices
- Timecards
- Prime Contract # B02-U07
- POs and bills
- Subcontracts, SCOs, and sub invoices
- Timecards
- Prime Contract # B05-U10
- POs and bills
- Subcontracts, SCOs, and sub invoices
- Timecards
Because prime contracts are created per unit, procurement of materials (for example, drywall) and services (for example, electrical installation) must also be managed at the unit level. Procurement can be streamlined using the Copy Procurement or Estimate to Procurement wizards, which help replicate or generate purchase orders and subcontracts across units as needed.
Each prime contract requires its own purchase orders (PO) and subcontracts. You cannot assign a single PO or subcontract to cover multiple prime contracts, such as multiple units. In a project with multiple prime contracts, each PO or subcontract must be tied to a specific prime contract. Plan your contract and subcontract structure accordingly, especially when vendors work across multiple units.
Learn more about working with labor timecards:
Prepare a separate prime invoice for each unit upon completion. For example, if 10 units are completed during a billing period, create 10 corresponding prime invoices.
When printing invoices, select Details by Owner Grouping to display rolled-up financials rather than itemized amounts by job cost code. If itemized detail is required, select Details by Job Cost Code instead.
After a unit is completed and fully invoiced, update the prime contract status to Approved and Closed. This prevents the contract from being used in future changes, expenses, or timecards.
In project analytics, dashboards are available to display financial data rolled up by prime contract (unit) and by job cost code for detailed cost tracking.