Implementation tips for residential developers managing multiple lots with Sage Construction Management estimates

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

For example:

• Lending source for land development and lot construction phases
• Legal firm
• Architect
• Consultants
• Suppliers
• Subcontractors

• Future homeowners (when known in advance of lot construction)

Learn more about adding firms to the Contact Management module.

Create one project record in Sage Construction Management for the land preparation and lot construction phases.

For example:

• Project number: Seacliff
• Project title: Seacliff Estates

Learn more about creating projects manually in Sage Construction Management.

The following companies must be added to the project directory:

• Lending source for land development and lot construction phases
• Legal firm
• Architect
• Your firm
• Consultants
• Suppliers
• Subcontractors

• Future homeowners (when known in advance of lot construction)

Learn more about adding companies to the project directory.

Create separate estimates for site development and each model, including all available options. Then, copy a model estimate to create a lot-specific estimate and remove any options that the future homeowner will not select.

Project estimates:

• Site development

  For example, clear site, grading, surveying, sewers, street paving.

• Model A with all options
• Model B with all options
• Model C with all options
• Lot 1
• Lot 2
• ...
• Lot 25

Model and lot estimate Work Breakdown Structure (WBS)

The WBS, for example, 03 Concrete, 04 Framing, 05 Roofing, must be consistent across both model and lot estimates. If the WBS differs, the Contract Setup Wizard might create duplicate job cost codes.

Incorrect WBS example:

• Lot 1 estimate WBS → 03 Concrete

• Lot 2 estimate WBS → 03000 Concrete (must be 03, not 03000)

Create job cost codes, prime contracts, and budgets using the site development and lot estimates in the Contract Admin Setup Wizard. In this scenario, the setup wizard is run 26 times, one time for site development and one time for each of the 25 lots.

Job cost codes:

• Site development cost codes

  For example, clearing, grading, sewers, streets, light poles, street signs, and so on.

• Lot construction cost codes

  For example, foundation, framing, roofing, doors, windows, cabinets, and so on.

Prime contracts:

• Site development (lender and your firm):
  • Purchase orders (POs)
  • Subcontracts
• Lot 1 construction (lender or future homeowner and your firm):
  • POs
  • Subcontracts
• Lot 2 construction (lender or future homeowner and your firm):
  • POs
  • Subcontracts
• ...
• Lot 25 construction (lender or future homeowner and your firm):
  • POs
  • Subcontracts

Example prime contract structure for land development and lot construction

• Project number and title: Seacliff - Seacliff Estates
  • Prime contract number and description: LandDev - Land Development
    • Land development cost code 1: Raw land acquisition
      • Cost budgets: Internal cost budgets (M|L|E|S|O)
      • Contract amount: Loan or funding source amount
      • Labor hour budget
      • Equipment hour budget
    • Land development cost code 2: Engineering and surveying
      • Cost budgets: Internal cost budgets (M|L|E|S|O)
      • Contract amount: Loan or funding source amount
      • Labor hour budget
      • Equipment hour budget
    • Land development cost code 3: Temporary construction
      • Cost budgets: Internal cost budgets (M|L|E|S|O)
      • Contract amount: Loan or funding source amount
      • Labor hour budget
      • Equipment hour budget
  • Prime contract number and description: Lot-001 - Lot 1
    • Lot construction cost code 1: Concrete
      • Cost budgets: Internal cost budgets (M|L|E|S|O)
      • Contract amount: Loan or funding source amount
      • Labor hour budget
      • Equipment hour budget
    • Lot construction cost code 2: Framing
      • Cost budgets: Internal cost budgets (M|L|E|S|O)
      • Contract amount: Loan or funding source amount
      • Labor hour budget
      • Equipment hour budget
    • Lot construction cost code 3: Roofing
      • Cost budgets: Internal cost budgets (M|L|E|S|O)
      • Contract amount: Loan or funding source amount
      • Labor hour budget
      • Equipment hour budget
  • Prime contract number and description: Lot-002 - Lot 2
    • Lot construction cost code 1: Concrete
      • Cost Budgets: Internal Cost Budgets (M|L|E|S|O)
      • Contract Amount: Loan or Funding Source Amount
      • Labor Hour Budget
      • Equipment Hour Budget
    • Lot construction cost code 2: Framing
      • Cost budgets: Internal cost budgets (M|L|E|S|O)
      • Contract amount: Loan or funding source amount
      • Labor hour budget
      • Equipment hour budget
    • Lot construction cost code 3: Roofing
      • Cost budgets: Internal cost budgets (M|L|E|S|O)
      • Contract amount: Loan or funding source amount
      • Labor hour budget
      • Equipment hour budget

Because prime contracts are created per lot, procurement of materials (for example, drywall) and services (for example, electrical installation) must also be managed at the lot level. Procurement can be streamlined using the Copy Procurement or Estimate to Procurement wizards, which help replicate or generate purchase orders and subcontracts across lots 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 lots. 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 lots.