Implementation Tips For Residential Developers With Multiple Lots Using Sage Construction Management Estimates

The implementation steps provided below pertain to a development project where there are multiple lots and job costing has to be performed at the project and lot level.

Business Scenario

• 25 Lots
• 3 Models With Options
• Estimating will be used to create model and lot estimates.
• Job Costing to be analyzed at project and lot level

1. Implementation Plan: Contact Management

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

Example Firms:

• Lending Source for Land Development and Lot Construction Phases
• Legal Firm
• Architect
• Consultants
• Suppliers
• Subcontractors
• Future Home Owners (if known prior to lot construction)

Related Help Topic:

• Resource Center - Contact Management

2. Implementation Plan: Project

There would be one project established in Sage Construction Management for the Land Preparation and Lot Construction Phases.

Example Project:

• Project # Seacliff
• Project Title: Seacliff Estates

Related Help Topics:

• Help Topic - Add Project Manually
• Resource Center - Projects

3. Implementation Plan: Project Directory

The following companies should be added to the Project Directory.

• Lending Source for Land Development and Lot Construction Phases
• Legal Firm
• Architect
• Your Firm
• Consultants
• Suppliers
• Subcontractors
• Future Home Owners (if known prior to lot construction)

Related Help Topic:

• Help Topic - Project Directory

4. Implementation Plan: Estimates

Create separate estimates for site development and models including all the options. Then, copy one of the model estimates to create a lot specific estimate and remove options that will not be purchased by the future home owner.

Project Estimates:

• Site Development (e.g. 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's Work Breakdown Structure (WBS):

The Work Breakdown Structure (ex. 03 Concrete, 04 Framing, 05 Roofing etc.) should be identical in the model and lot estimates otherwise the Contract Setup Wizard will create duplicate job cost codes. See example below.

Example Incorrect WBS Coding:

Lot 1 Estimate WBS --> 03 Concrete

Lot 2 Estimate WBS --> 03000 Concrete (should be 03 not 03000)

Related Help Topic:

• Resource Center - Estimating5. Implementation Plan: Job Cost Codes, Prime Contract and Original Budgets

The Site Development and Lot Estimates will be used by the Contract Admin Setup Wizard to cretate Job Cost Codes, Prime Contract, and Budgets. Thus, the setup wizard will be run 26 times (1 Site Development, 25 Lots) in this scenario.

Job Cost Codes:

• Site Development Cost Codes (ie Clearing, Grading, Sewers, Streets, Light Poles, Street Signs etc.)
• Lot Construction Cost Codes (ie Foundation, Framing, Roofing, Doors, Windows, Cabinets etc.

Prime Contracts:

• Site Development: (Lender and Your Firm)
  • POs
  • Subcontracts
• Lot 1 Construction: (Lender or Future Home Owner and Your Firm)
  • POs
  • Subcontracts
• Lot 2 Construction: (Lender or Future Home Owner and Your Firm)
  • POs
  • Subcontracts
• ...
• Lot 25 Construction: (Lender or Future Home Owner and Your Firm)
  • POs
  • Subcontracts

Related Help Topics:

• Help Topic - Contract Setup Wizard
• Help Topic - Job Cost Codes Overview
• Help Topic - Prime Contract Overview

Example Prime Contract Setup Structure for Land Development and Lot Construction

• Project # Seacliff: Seacliff Estates
  • Prime Contract # 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 # 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 # 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

6. Implementation Plan: POs and/or Subcontracts

Since Prime Contracts will be created for each lot, the procurement of materials (ex. drywall) and services (ex. electrical installation) will also have to be done by lot. However, this can be automated using either the 'Copy Procurement' or 'Estimate to Procurement' Wizards.

Related Help Topic:

• Resource Center - Procurement