Implementation tips for managing prime contracts and job cost codes in design-build projects

Make sure all firms involved on the project are added in the Contact Management module.

For example:

• Client
• Subcontractors
• Suppliers

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: 2018-Stanford
• Project title: Standford Residence - New Construction - 3000 SF - Stucco Facade

Learn more about creating projects manually in Sage Construction Management.

The following companies must be added to the project directory:

• Client
• Your firm
• Subcontractors
• Suppliers

Learn more about adding companies to the project directory.

Create job cost codes and prime contracts for the design and phases. For the fastest setup, use the Microsoft Excel option in the Contract Admin Setup Wizard. You can use the following sample Excel files:

• Design phase
• Residential build phase NAHB style
• Commercial build phase with CSI 95 divisions
• Commercial build phase with CSI 2016 divisions

Example project, prime contracts, and job cost budget structure:

For simplicity, the example below shows only two cost codes for each phase. In practice, each prime contract would reference many more cost codes.

• Project number: 2018-Stanford
  • Prime contract number for the design phase: 001
    • Design cost code 1: Architecture design services
      • Cost budgets: Materials/Labor/Equipment/Sub/Other
      • Revenue budget (contract or bank draw amount)
      • Labor hour budget
      • Equipment hour budget
    • Design cost code 2: Interior design services
      • Cost budgets: Materials/Labor/Equipment/Sub/Other
      • Revenue budget (contract or bank draw amount)
      • Labor hour budget
      • Equipment hour budget
  • Prime contract number for the build phase: 002
    • Build cost code 1: Sitework
      • Cost budgets: Materials/Labor/Equipment/Sub/Other
      • Revenue budget (contract or bank draw amount)
      • Labor hour budget
      • Equipment hour budget
    • Build cost code 2: Concrete
      • Cost budgets: Materials/Labor/Equipment/Sub/Other
      • Revenue budget (contract or bank draw amount)
      • Labor hour budget
      • Equipment hour budget

Each prime contract requires its own purchase orders (PO), subcontracts, and labor timecards. You cannot assign a single PO or subcontract to cover both prime contracts. 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 both phases.

• Project number: 2018-Stanford
  • Prime contract number for the design phase: 001
    • PO or subcontract # 001 : Lighting consultant
    • PO or subcontract # 002 : Interior designer
    • PO or subcontract # 003 : Landscape designer
    • PO or subcontract # 004 : Media/entertainment designer
    • Labor timecards
  • Prime contract number for the build phase: 002
    • PO or subcontract # 005 : Sitework subcontractor
    • PO or subcontract # 006 : Foundation subcontractor
    • PO or subcontract # 007 : Framing subcontractor
    • PO or subcontract # 008 : Electrical subcontractor
    • PO or subcontract # 008 : Mechanical subcontractor
    • Labor timecards

Learn more about working with labor timecards:

• Add daily labor timecards

• Add weekly labor timecards

• Add crew timecards

• Import labor timecards from Excel

• Approve labor timecards

Prepare one or more prime invoices during each phase.

After the design phase is completed and fully invoiced, update the status of the particular prime contract to Approved and Closed. This prevents the design contract from being used in future changes, expenses, or timecards that occur during the build phase.

In project analytics, dashboards are available to display financial data rolled up by prime contract and by job cost code for detailed cost tracking.

Repeat steps 4-9 for the build phase.