TimeSuite Software Provides Features To Accommodate Construction Contractors
We have tapped into a wide variety of sources, construction companies and construction specific CPA's from all sectors have helped to define the required functionality of TimeSuite Toolbox construction specific accounting software package. Providing accurate financial information with reporting that facilitates the percentage of completion method of accounting is only half of what this system does well. The other side of the coin includes bridging the gap between the way the job is estimated and how it is accounted for. With Actual vs Budget job cost reporting, by period, by bid item, task, phase etc... Basically you can see the budget vs actual performance by the line item in the same manner as the project was estimated. With labor variance reporting you can track actual labor costs (budgeted hours vs actual with the variance and budgeted labor hourly costs vs actual with variance) against the estimated budget, refining the estimating process. Estimating can be performed in the system, from simple quotes to complex estimating with the Bid Items Grid, the Bid Item Grid can also import estimates from virtually any external estimating system and/or process. Turn estimates to active projects with a single click, track your projects from estimate to final billing.
Types of Construction Contracts
The nature of a contractor’s risk exposure varies with the type of contract. The four basic types of contracts used based on their pricing arrangements are:
fixed-price or lump-sum contracts,
cost-type contracts, and
time and materials contracts.
Fixed-Price or Lump-Sum
A fixed price or lump-sum contract provides for a
single price for the total amount of work to be performed on a project.
A unit-price contract provides that a contractor will
perform a specific project at a fixed price per unit of output.
A cost-type contract (including cost-plus) provides
for reimbursement of allowable or otherwise defined costs incurred
plus a fee for the contractor’s services. Usually, the contract
only requires that the contractor’s best efforts be used to
accomplish the scope of the work. Cost-type contracts take a variety
of forms. The contracts often contain terms specifying reimbursable
costs, overhead recovery percentages, and fees. The fee may be fixed
or based on a percentage of reimbursable costs.
A time-and-materials contract is similar to a
cost-plus contract and generally provides for payments to the
contractor on a basis of direct labor hours at fixed hourly rates
(the rates cover the costs of indirect labor and indirect expenses
and profit) and costs of materials or other specified costs.
As a construction company, you have three types of expenses:
Direct Job Costs
These types of costs can be specifically identified to a particular job.
Examples of these types of costs/expenses include:
Direct Job Labor
Job Bonds & Permits
Per Diem Paid on a Job
Indirect Job Costs
These types of costs are job related, but are difficult or impractical to specifically identify to a particular job.
Examples of these type of costs/expenses include:
Depreciation on Field Equipment/Vehicles
Gas, Diesel & Oil
Repairs & Maintenance of Field Equipment/Vehicles
Field Vehicle Expenses
Field Payroll Taxes and Insurances
General & Administrative Expenses
These types of expenses are theoretically fixed in nature, and should not significantly vary with the level of work the company performs.
Examples of these types of expenses
Legal & Accounting
Office Supplies & Expenses
Office Telephone & Utilities