| TEAM MEETINGS |
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To ensure the financial goals are met for your project, you should meet with your team, including accounting personnel, at minimum twice a month.
- Firstly, to review Owner App
- Second, after Owner payment is received to review the status of unconditional lien waivers
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| JOB COST PHILOSOPHY |
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Who:
- The Project Manager is Responsible For:
- The PM is the individual with overall accountability for a project. Each PM will be given full profit and performance responsibility for their jobs.
- Function as empowered entrepreneurs running your work and achieving the financial goals for your projects that contribute to our overall profitability.
- A PM's performance will be rated based on the following items:
- Profitability of their jobs
- Accurate and timely job costing and accounting functions
- The PM shall invoice owners in accordance with their contract both AIA forms and work orders, and be responsible for collection of payments.
Projections Philosophy:
- Providing accurate job cost projections on each and every project is crucial to running our business
- Creating an accurate project should be easy as long as you have a fundamental handle on your project status, reoccurring costs, potential costs, and all COs are current with the Owner and Subcontractors.
- When completing your monthly Job Cost Projection we are wanting to project what the FINAL cost of the project will be when we close it out taking all of the information that you know at the moment in time. It is not a monthly document that just REPORTS what financially happened over the past month.
- If the projected cost drastically fluctuates from month-to-month, that tells your Project Director that the project is in distress or the manager does not have a full understanding of the project, or both.
- Challenge the project budget and the project team. Identify some areas to be aggressive in an effort to increase profits.
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Accounting Life Cycle
Why:
- Accurate & timely job cost projections
- Accurate & timely owner bills
- Accurate & timely approval of Accounts Payable
- Excellent communication between Accounting and Project Managers
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| CURRENT SCHEDULE & DATES TO MEET |
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Current Invoice Schedule/Cut Off Dates
| Subcontractor Invoices due in GC Pay |
25th of the month |
| All Sub Invoices approved and ready for accounting |
1st of the month |
| Finalize and send owner bills |
5th of the month |
| AP/AR closed - all cost and billings posted |
10th of the month |
| Job Cost Projections Due |
15th of the month |
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| WIP REPORTS |
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What is the WIP?
- WIP stands for Work In Progress
- The WIP report is a snapshot of the financial health of a project
What is the WIP used for?
- Review of Overbilling / Underbillings
- Overall Summary of Monthly Review/Gross Profit
- Overall Summar of Year-to-Date Revenue / Gross Profit
- Identifies future backlog
- Used to determine progress towards annual company financial goals
- Bonding Company
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Sample WIP Report
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