CMiC Basics - Gilbane Building Company | Gilbane ... are used to manage the Job, key functions...

CMiC Basics

Version: 1.3

Version 1.3 Internal Document 1

Table of Contents OVERVIEW 2

LIFE OF A JOB 3

THE WIN (OPPORTUNITY MANAGEMENT) 3 JOB’S AND PROJECTS 4

Projects (Project Controls) 4 Jobs (Job Costing) 5 Project/Job Numbering 5

Controlling Jobs 6 Project / Job Setup Example: One to One 7 Project / Job Setup Example: Financial Rollups to a Controlling Job 8 Project / Job Setup Example: Project Team Assignment 9

Summary 9 ENTERING THE GILBANE BUDGET (JOB COSTING) 10

Phase Codes 10 Category Codes 12 Budget vs. Billing 13 Summary 14

SUBCONTRACTS (PROJECT CONTROLS) 15 Business Partners 16

Business Partner Structure 16 Compliance and MBE Participation 18 Summary 18

CHANGE MANAGEMENT (PROJECT CONTROLS) 19 Workflow Example 20 Potential Change Item - PCI 21 Change Types 22 Request for Quote - RFQ 23 Authorization to Proceed - ATP 24 Owner Change Order = OCO 25 Subcontractor Change Order - SCO 26 Reports 26 Summary 27

BILLING CONTRACT (JOB BILLING) 27 Bill Codes 28

Group Bill Codes 29 Grouping Example 30

Group Maximums 31 Billing Types 32 Billing Rate Table 33 Requests for Payment (Project Controls and Accounts Payables) 34 Generating the Invoice (Job Billing) 35 Summary 36

CONTRACT FORECAST (MICROSOFT EXCEL) 37

APPENDIX 38

GLOSSARY 38


Overview CMiC is utilized to manage all facets of a Jobs financial transactions. CMiC contains a variety of modules that are used in the day to day management of all of the financial activity that takes place on a Job. Items such as subcontracts, changes, and invoicing the customer. This manual is designed to take you through the life of a Job and review the key functions that are performed. Users will learn about the differnent modules in CMiC that are used to manage the Job, key functions performed, and the terms used in the system. After this module you will be able to:

• Identify the CMiC modules that Gilbane utilizes and how they intereact with each other

• Discuss the lifecycle of a Project in CMiC • Categorize the different tracking methods used for costs incuding Phase,

Category, and Bill codes • Describe the Change Management workflow • Utilize key CMiC terms and definititions

Gilbane utilizes the following modules within CMiC for managing the financials of Projects/Jobs. Module Description Accounts Payable

Non contracted invoices from suppliers are processed.

Accounts Receivable

The receipt of payment on outstanding invoices is tracked and processed.

E-Time / Payroll

Gilbane employees enter their time worked and where the time should be charged to.

Human Resources

Employee records are maintained.

Job Billing Contract terms and invoicing for Projects are maintained. Job Costing Jobs are created and budgets are applied. Opportunity Management

Sales Opportunities that Gilbane is currently pursuing are entered and tracked.

Project Controls

Subcontracts and Changes are entered and processed. Project level security roles are also defined.


Life of a Job

The Win (Opportunity Management) As Gilbane is pursuing Opportunities they are tracked within the CMiC Opportunity Management module, also referred to as CRM (Customer Relationship Management). Gilbane’s Business Development and Doer Seller groups utilize CRM to enter details about the Opportunity such as the customer, value of the opportunity, key players and current status of the Opportunity. CRM is an extremely valuable management tool as it allows Gilbane to track interactions with customers and Opportunities. This information is available to other employees so that those interactions and relationships can be leveraged to assist in other Opportunities. When an Opportunity is created a corresponding Project is generated in CMiC to track associated Gilbane personnel. When an Opportunity is awarded to Gilbane a Job is associated with the Project to track the financial details as Gilbane managers the Job for the customer.


Job’s and Projects There are two key records that are created to track the financial, personnel, and contract details for our customers, Projects and Jobs. In this section we will review the role that Projects and Jobs play and how they are related.

Projects (Project Controls) Projects are utilized in CMiC to associate people and information. When Gilbane wins an award from a client a new project will be setup in the Enter Project application of the Project Controls Module. Note that no financial information is stored or entered against a Project.

Items that are associated with the Project include: Item Description Project Contacts

Contacts are created for both Gilbane roles on the Project and for the subcontractors that are involved.

Sub-Contracts The subcontract is associated with the project including all of the legal language.

Key Players These are the key Gilbane, customer, and partner (i.e. architects, consultants, etc) contacts involved with the Project.

Project Dates The key completion dates for different portions (preconstruction, design, construction, etc) of the project.

Even though the subcontract is issued against a Project the costs included in the subcontract are associated with a specific Job.


Jobs (Job Costing) Jobs are utilized for tracking all of the financial details associated with the construction. Examples of items processed for a Job include the subcontract costs, changes that occur, Requests for Payment (RFP’s) from subcontractors and suppliers, and the amount we will bill the owner,.

Project/Job Numbering Projects and Job’s share the same numbering scheme.

Sub-Module Description Record Identifier

The record identifier indicates the Job Type. • J = standard GBCo Job • V = joint venture • X = owner held • G = Gilbane Resources Inc

Controlling Job

The Controlling Job is the main job associated with the Project. The Controlling Job can have multiple sub-Jobs associated with it. The controlling Job will have the same exact record number as the Project.

Sub Job Sub-Jobs can be associated with the Controlling Job. The Controlling Job will end in .000 and each associated sub-Job will then utilize a different code (i.e. .100, .200, .300)

Remember, project contacts (Gilbane, Owner, and Subcontractor) are assigned at the Project level. This means that all Jobs (Controlling and sub-Jobs) will share the same contacts.

If my Project number is J00231.000, my controlling Job number will be J00231.000.


Controlling Jobs The Controlling Job is the overall Job number for the Project. For less complex financial projects the Controlling Job may be the only Job used to track costs. For more complex financial projects Controlling Jobs will contain two or more sub-Jobs. Sub-Jobs allow Gilbane to roll up costs at the sub-Job level and at the Controlling Job level. Typically Gilbane will create sub-Jobs when costs need to be tracked against a specific owner funding source, segment of the construction, or other owner requirement. Controlling Jobs allow us to track cost data at a global level as well as the lower level required by the customer.

In a situation where the project requires a total of three jobs to track costs four Jobs will be created. J00100.000 will be the Controlling Job and J00100.100, J00100.200, and J00100.300 would be created as sub-Jobs. When Subcontracts are written costs from the Schedule of Values will only be applied to the sub-Jobs (.100, .200, and .300). The Controlling Job, J00100.000, will be used for cost rollups only; costs will not be written directly against it.


Project / Job Setup Example: One to One

In this scenario we have a 1:1 relationship for Project to Job. All Gilbane staff, Owner Represenative, and Subcontractor contacts are associated with Project J01111.000. When ever a document is generated from the system or a workflow is kicked off CMiC will use this list of contacts. On the financial side all costs for the subcontracts are associated with Job J01111.000.


Project / Job Setup Example: Financial Rollups to a Controlling Job

In this example all Gilbane staff, Owner Representative, and Subcontractor contacts are associated with Project J05555.000. When ever a document is generated from the system or a workflow is kicked off CMiC will use this list of contacts regardless of which Job/sub-Job it is for. On the financial side, no direct costs are associated with the controlling Job J05555.000. Instead it is used for rollup of costs only. When subcontracts are written agains the Project the costs associated with those subcontracts will be associated with one or more of the sub-Jobs (J05555.001, .002, .003.)


Project / Job Setup Example: Project Team Assignment

In this example two separate Projects were created so that each associated Job can have its own staff/contacts assigned. This allows different contacts to be used for workflow roles and document generation between the Jobs. In this example costs cannot be rolled up from one Job to the other (i.e. from J08888.100 to J08888.000) because they are associated with different projects.

Summary At this point a Project has been created in CMiC and its corresponding Job’s and Sub-Jobs have been linked. When deciding on how to set the Project/Job up the project team will determine how they want to manage the key aspects of the Project/Job. For more complex financial jobs that need many layers of management or contain multiple funding sources you may see Sub-Jobs utilized. If it is a lage construction project with many Gilbane Personell each responsible for different portions you may see multiple Projects used. The key items to remember are that each Project is associated with one Controlling Job and financial information cannot rollup between Jobs that are associated with different Projects.


Entering the Gilbane Budget (Job Costing) CMiC contains two budgets, Cost and Billing. Cost Budget includes costs for subcontractors, general conditions and Gilbane employees while Billing Budget refers to the amount Gilbane expects to receive from the Owner for the services performed. For each activity/role/service that will be performed for the construction a Phase Code is associated. This Phase Code is used to categorize the work.

Phase Codes Costs are tracked in CMiC via Phase Codes. Phase Codes are analogous to Cost Codes in JDE. Phase Codes are based on the 2010 CSI codes and are utilized in the following format:


Phase Code Section

Description

Area A 2 digit code that represents a project specific segmentation of work. Area is typically used to segment costs by items such as construction phase, area of the building, department or some other project designation. These codes also provide a mechanism for rolling up costs in the Contract Forecast and Billing modules.

Bid Package Represents the bid package that the work represented by this Phase Code was bought out under.

2010 CSI Code The 2010 CSI code that corresponds to the type of work the Phase Code represents. The CSI selection values represent a pared down list of the complete 2010 CSI code listing. Gilbane will gain business intelligence by consistently using CSI codes for their standard purpose. Our preconstruction teams can analyze costs by CSI code to determine trends by region. For this reason, Project teams are not allowed to repurpose codes and are expected to use them as defined by the 2010 CSI code classifications.

Project Specific

The Job may have several different Phase Codes that need to be setup that would normally fall under the same standard 2010 CSI code. See the example below for an example of the use of the Project Specific designation.

Uniformat A single letter that designates the system or location of the work the Phase Code is designating. Options include: (F) Foundations, (S) Superstructure, (E) Enclosure/Exterior, (R) Roof, (I) Interiors, (Z) Construction Phase and General Conditions, and (X) CSI Defined

A Uniformat of X tells the user to look at the specific CSI code to determine its system/location


On our job we are utilizing 1 Area for everything. We have to do demolition as part of our project that will require both lead and asbestos removal and we want to track the costs for each separately. Both items were purchased under Bid Package 09A by our purchasing agent. The 2010 CSI code for Site Remediation is 0250 so the project decides to use the Project Specific section of the Phase Code to delineate between lead and asbestos removal. In both cases the CSI code defines the location of the work so X is used. For this example the Phase Codes would be 01.09A.025010.X for lead removal and 01.09A.025020.X for the asbestos removal. This allows Gilbane to track general costs for Site Remediation and to look for trends while also allowing the project team the flexibility they need to manage their Job.

Category Codes When Phase Codes are created they also have a Category Code assigned. Category Codes indicate the type of cost the Phase Code is for. Phase Codes can have multiple Category Codes associated with them. Code Name Code Name OA Owner Allowance DSS Design Site Services/Support TA Trade Allowance CPF Constn Phase Fee TC Trade Contractor DPF Design Phase Fee OC Owner Contingency CFLNR NR Constn Field Labor GC Gilbane Contingency DFLNR NR Design Field Labor CFL Constn Field Labor CFBNR NR Constn Field Burden DFL Design Field Labor DFBNR NR Design Field Burden CFB Constn Field Burden CRLNR NR Constn Regional Labor DFB Design Field Burden DRLNR NR Design Regional Labor CRL Constn Regional Labor CRBNR NR Constn Regional Burden DRL Design Regional Labor DRBNR NR Design Regional Burden CRB Constn Regional Burden CSSNR NR Constn Site Services/Support DRB Design Regional Burden DSSNR NR Design Site Services/Support CSS Constn Site Services/Support

You will commonly see Phase Codes and Category Codes grouped together and refererred to as one item.


Budget vs. Billing As Phase /Category Codes are created they can have a Cost Budget and Billing amount applied to them. Cost Budget is the maximum amount of money Gilbane is currently planning on spending to complete the Job. These funds include Subcontractor costs, Gilbane personnel costs and General Conditions. Billing is equal to the revenue we will receive from the client. These funds are used to pay subcontracts, reimbursable Gilbane personnel, General Conditions, and Gilbane’s fee. Jobs should have a larger Billing amount than Cost Budget amount signifying we currently forecast a profit for the assignment.

You will see Cost Budget referred to as simply Budgetin CMiC. You will also see Billing Budget referred to as Revenue, Revenue Budge, or Billing Budget.

Let’s take a look at a very basic overview of how Cost Budget and Billing Budget are differentiated.

When a job is first setup the estimate is imported into CMiC. The estimated cost of the subcontracts is $8,000,000 and General Conditions/Gilbane personnel total $2,000,000. The starting Cost Budget amount for the project is $10,000,000. In the Owner / Gilbane contract it calls for Gilbane to receive a 2% fee, equal to $200,000 in this situation. The starting Billing Budget amount for the project will be $10,200,000. As the project progresses there will be changes, updates, and markups. These starting amounts will fluctuate with time; however, the idea behind them remains the same. If an In Scope Change is entered for work that Gilbane did not identify in the contract documents on a subcontractors scope of work, the total Cost Budget will increase but the Billing Budget total will remain the same. The amount of money we must pay the subcontractor has increased but we will not be receiving any additional funds from the owner. If an Out of Scope Change is entered for work not originally identified in the contract documents then both the Cost Budget and Billing Budget will increase. The amount of money we must pay the subcontractor increases and the money we receive from the Owner will also increase.


Summary Phase Codes and Category Codes are combined and used to track costs for the Job. Phase/Category Codes are assigned to a Job using a standard format and have Cost Budget and Billing Budget applied to them. In essence, Cost Budget is the amount of money Gilbane plans on paying to complete the Job while Billing Budget is the amount of money Gilbane expects to receive from the owner throughout the life of the Job. Now that we have our Phase/Category codes assigned and their starting Cost Budgets we can write Subcontracts for them, track costs, and ultimately bill the owner.

Above is an example of the Enter Budget application. Note that each Phase/Category Code has a Cost Budget and Billing Budget Amount. The Billing Budget Amount is referred to as the Revenue Amount in this application.


Subcontracts (Project Controls) Subcontracts are created in the Enter Subcontract application under the Project Controls module. At least one Subcontract is created for each subcontractor and it is associated with the Project. While the contract language is signed and associated with the Project the actual costs associated with the Subcontract are applied to a specific Job. When the Subcontract is created the Schedule of Values is created. The Schedule of Values represents the different pieces of work that the subcontractor will be performing. Each line item on the subcontract contains a unique phase code/category code combination. When the subcontractor contract is printed the schedule of values will be printed in addition to the scope of work that was entered. The amounts entered here represent the subcontracts commitment

We need to do earthwork as part of this project. Purchasing has decided to break the Subcontract into two parts the base contract and then a Trade Allowance to cover potential unknowns. The Schedule of Values (seen above) contains a line item for 01.02C.310000.X with a TC category code. This will be the base contract for the work and is written for 1.2 million. The Trade Allowance is added for phase code 01.02C.310000.X with a TA category code. This allowance will be set at 25 thousand.

Both of these line items are associated with Job J0001.000.


Business Partners Business Partners represent all of the companies that Gilbane does business with. These companies range from current and prospective customers, to subcontractors, to architects, and consultants. In order for a Subcontract to be written the subcontractor must be setup as a Business Partner with CMiC. This is true of our customers and suppliers as well. CMiC serves as Gilbanes central address book. This means that multiple systems draw upon the information contained within CMiC. Because of this it is imperative that the information be accurate in CMiC and that the system is free of duplicates or incorrect data.

I.BidPro utilizes the central CMiC Address book. If a company is setup in CMiC they will be available for selection in i.BidPro. Changes to the company information in CMiC will propagate to i.BidPro as well.

To help ensure the validity of the data within the system a Gatekeeper role has been created. The Gatekeeper is responsible for revieiwng requests for new Business Partners. When reviewing the request they will look to determine that the Business Partner does not currently exist in the system and that the setup of the new Business Partner is thorough and accurate.

Business Partner Structure A Business Partner has three levels of hierarchy: Business Partner, Alternative Address and Controlling Business Partner. Component Description Business Partner

Represents a single legal entity that Gilbane does business with. To qualify as a Business Partner the organization must have its own unique Federal Tax ID.

Alternate Address

Represents the different office locations a Business Partner has. Each of these branch locations has the same Federal Tax ID as the parent.

Controlling Business Partner

Represents the controlling company for a Business Partner. This is the legal entity that owns the organization. Controlling Business Partners will have one or more Business Partners associated with them. A Controlling Business Partner is also a selectable Business Partner.


In this example we see a sample setup of United Technologies • United Technologies is the Controlling Business Partner as they

own both Otis Elevator and Delta Beckwith. United Technologies could be selected as a Business Partner

• Otis Elevator and Delta Beckwith are Business Partners. Each of those companies has their own Federal Tax ID. Each company could be selected as a Business Partner.

• Under Otis Elevator we see some sample Alternate Addresses. Alternate Addresses are not setup as a Business Partner. When Otis Elevator is selected on a record, such as a Subcontract, the user will be able to specify which specific branch location they are working with by selecting the appropriate Alternate Address.

If I were writing a Subcontract for Otis Elevator I would select them as the Business Partner. If was working with the New York branch of Otis then I would select that Alternate Address. This would allow items like correspondence and payment to go to the proper address. It also allows Gilbane to track the exposure that Otis has across all of its branches.

Utilizing a Controlling Business Partner relationship allows Gilbane to view the company globally. This provides a useful structure for reviewing insurance requirements, handling changes to the Business Partners Organization, and for bonding.


Compliance and MBE Participation CMiC contains a compliance module within the Subcontract module. This allows Gilbane to track the subcontractor’s compliance as it pertains to items such as insurance and bonding.

A MBE Participation applications is also available that allows Gilbane to track MBE percentages of work on a Job. The MBE Participation module allows Gilbane to measure participation at both the subcontractor level and by the subcontractor’s subs as well.

Summary After a Job has the Phase/Category Codes assigned to it the Purchasing team can enter the Subcontracts that will be issued to the Trade Contractors to complete the work. The Schedule of Values is used to assign contract amounts for each Phase/Category code the subcontractor will be responsible for completing. This amount acts as the total amount the subcontractor can bill though it may be increased if there are approved changes to the subcontract. With Subcontracts created subcontractors can begin to bill us for work performed and we can create changes and amendments to their contract as needed due to changing conditions on the Job. In order for a company to be assigned a Subcontract they must be setup as a Business Partner. CMiC is the central Address Book for Gilbane and other systems draw off the Business Partners loaded into the system. A Gatekeeper is tasked with ensuring the Business Partner information is accurate and free of duplicates.


Change Management (Project Controls) The Change Management module in CMiC is where Gilbane will manage change entry, approval and posting. This module contains several applications, including, Potential Change Items, Authorizations to Proceed, Owner Change Orders and Subcontract Change Orders. In the following sections we will discuss review these different components and the CMiC terminology.


Workflow Example While not all changes follow the same workflow it is a good idea to have a basic understanding of the typical lifecycle for a PCI. In the following example you will see the different milestone events that may apply to a PCI. As our Project was setup a (1.)subcontract for Emcor to provide all internal plumbing for the facility was loaded into CMiC. Their scope of work was clearly defined and included all relevant items in the contract drawings. Two months into the Project the Owner has decided to add an additional sink to all of the restrooms on the 2nd floor. At this point an (2.)Out of Scope PCI is generated in CMiC and all subcontractors that are required to complete the change are added to it. Emcor is included as a line item on the PCI. (3.) RFQ’s are created for each of the subcontractors asking them to quote the work identified in the PCI. The quotes have now been returned and we are working with the subcontractors to finalize the amounts. The Project is still in the early construction phase and this change is not schedule critical so an (4.)ATP is not required for the change. Gilbane has now finalized the pricing with all subcontractors involved in the PCI and has been making (5.) updates to the PCI as needed. The PCI is now (6.) associated with an OCO to receive final Owner approval for the change. The OCO has been approved by the Owner and (7.) Posted in the system. The (8.)SCO’s must now be created to amend the subcontract. Once the SCO is approved it is Posted in the system and the subcontractor can now bill for the additional charges.


Potential Change Item - PCI PCI’s represent changes that are being tracked by Gilbane. PCI’s contain multiple line items that list out the involved Subcontract and Phase Code. Each line item has an associated cost and scope description that will be used to generate RFQ’s, ATP’s, and OCO’s.

Above is an example of an Out of Scope PCI that has two line items associated with it.

In CMiC Gilbane can apply standard markups to a PCI, track allowances and their associated tickets, track MBE participation, and attach relevant documents.


Change Types Change Types identify the funding source for the PCI. The selection of a Change Type determines whether it hits the Cost Budget and/or Billing Budget and the approval process that will be used. Change Types include: Type Description Cost

Budget Billing Budget

Back Charge Used when Gilbane is charging a Subcontractor for improperly performed work, damage to the construction site, failure to clean area, etc.

Y N

Budget Transfer Transfers funds from one phase code to another. For these PCI’s the total amounts will always be 0 as you will be taking money away from subcontractors/phase codes but giving the same amount to other subcontractors/phase codes.

Y Y

In Scope Used when Gilbane did not include an item (or items) in the scope of work for the Subcontractor but the work was included in our contract with the owner.

Y N

Owner Allowance

This is setup immediately after the Gilbane / Owner contract is signed to track all general allowances that have been identified. This PCI is used for tracking all work that will utilize the Gilbane / Owner allowance.

Y Y

Out of Scope Used for changes that falls outside of the original contract between the Owner and Gilbane.

Y Y

Trade Allowance

This is setup immediately after a subcontract is created that contains Gilbane/Subcontractor allowances. This PCI is used for the tracking and reconciliation of T&M tickets that are being applied against the Gilbane/Subcontractor Allowance.

Y N


Request for Quote - RFQ RFQ’s are created based on the detail in the PCI. CMiC contains standard templates for our standard forms and RFQ’s utilize the PCI fields to complete these templates.

Above is an example of the standard RFQ template that is filled out with the details from the PCI. Note that not all fields/sections are shown.


Authorization to Proceed - ATP PCI’s can be grouped together (or remain standalone) onto an Authorization to Proceed. ATP’s are utilized to gain immediate approval from an Owner (or their representative) so that work can begin prior to final Owner approval through an Owner Change Order (OCO). ATP’s typically have estimated pricing or a first look at actual costs. The final pricing for the change will be submitted on the Owner Change Order.

Above is an example of an ATP that contains two PCI’s on it. The user will be able to create an ATP document and send it to the Owner for Approval.


Owner Change Order = OCO Owner Change Orders represent final approval from an owner on all aspects of a change. An OCO should be submitted when the full scope of the change is entered (all work is identified and PCI’s created) and final pricing has been agreed on with the subcontractors.

Above is an example of an OCO that contains two PCI’s on it. The user will be able to create an OCO document and send it to the Owner for Approval. If the changes are approved the PCI’s will be posted (made final) in the system.


Subcontractor Change Order - SCO Subcontractor Change Orders (SCO) represent amendments to the original subcontract that was created in CMiC. SCO’s are created any time the scope of a subcontractors work is being altered or there is a change in the amounts the subcontractor is allowed to bill. Once a Subcontractor Change Order is posted the subcontractors involved will be able to enter Requests for Payment.

Above is an example of an SCO that contains single PCI. Once the SCO is posted (made final) the subcontractor will be able to bill for that work.

Reports GTG has built a reporting add on to CMiC that utilizes a live data feed. Changes made in CMiC are reflected in real time on the reports. Each report has filter capabilities where the user can determine what parameters they want to include so they can generate a report that meets their needs t the moment.


Summary PCI’s are used to track potential changes, associate subcontracts and phase codes and perform price negotiations. As changes are entered they follow a five step process; 1. PCI, 2. RFQ, 3. ATP, 4. OCO, and 5. SCO. Not all PCI’s will go through all five steps as it depends on the type of PCI, the various approval processes, and the contract language that has been agreed to between Gilbane and the owner. The PCI functionality is utilized throughout the life of the project. As changes are entered and processed the Jobs Cost Budget and Billing Budget mounts fluctuate with approved changes. These approved changes are updated throughout the different modules of CMiC and become available for billing by the subcontractor and ultimately billed to the owner as well.

Billing Contract (Job Billing) The Billing Contract is used to assign the contract terms for the Job. The Billing Contract that is setup looks identical to the Project and Job number except that it begins with a B. When the Billing Contract is created the project accountant will create the Bill Codes, assign groupings and maximums, associate Bill Types, and setup a Billing Rate table.

The Billing Contract for Job J00001.000 has a contract number of B00001.000.

Billing Contracts represent one invoice that will be generated for an owner and can include either a single Job or multiple sub-Jobs. When sub-Jobs are used the billing contract number will be equal to that of the Controlling Job.


Bill Codes Bill Codes represent the costs that are being billed to the Owner. Bill Codes are created based off of the Phase Code/Category code combinations that have been setup for the Job. Bill Codes are created in a 1:1 relationship with the Phase Code/Category Code.

The Phase Code 01.09A.092000.X is used to track Plaster and Gypsum costs and is setup with a TC Category Code for Job J00135.000. When the Bill Codes are created it will be 000.01.09A.092000.X.TC where 000 is the sub-Job number and TC is the Category Code.

As charges accrue for each associated Phase Code on the Job the billing amount is determined and applied to the corresponding Bill Code. This Billing (or revenue) amount is then applied to the Invoice and billed to the owner. Here is an example of the list of Bill Codes for a Billing Contract.


Group Bill Codes Grouping Bill Codes allows Gilbane to view the billing amounts on the job in a variety of different ways through the standard rollups. CMiC contains 5 standard groups:

000.01.09A.092000.X.TC Group Description 1. Sub-Job Billing Amounts are subtotaled at the sub-Job

level. 2. Area Billing amounts are subtotaled for each area

UNDER each sub-Job. 3. General Conditions/ Trade Contractor

Separates General Conditions amounts from Trade contractor amounts based on the first digit of the CSI code. This is done as a separate grouping UNDER each area.

4. Design/Construction Phase Separates Design General Condition’s costs from Construction General Condition’s costs.

5. Bid Package Groups bill codes according to the bid package they are associated with. This is done as a separate grouping under each Area.


Grouping Example Let’s take a look at 4 bill codes to see how they would be mapped into groups:

1. 000.01.900.910100.Z DRL 2. 000.01.925.940100.Z .CFL 3. 000.02.925.940101.Z.CFL 4. 000.01.09A.092000.X.TC

1. Sub-Job Group All four codes are part of Sub-Job 000 so they would all be grouped together. 2. Area Three of the codes 000.01.900.910100.Z DRL, 000.01.925.940100.Z.CFL, and 000.01.09A.092000.X.TC are part of Area 1 so they will be grouped together. Charges for 000.02.925.940101.Z.CFL will be grouped with other Area 2 charges. 3. General Conditions/Trade Contractor 000.01.900.910100.Z DRL and 000.01.925.940100.Z.CFL will be grouped together as Area 1 General Conditions. 000.01.09A.092000.X.TC will be part of the Area 1 Trade Contractor costs. Charges for 000.02.925.940101.Z.CFL will be grouped with other Area 2 General Conditions. 4. Design Phase / Construction Phase 000.01.900.910100.Z DRL will be grouped with the Area 1 Design Phase charges. 000.01.925.940100.Z.CFL will be grouped with the Area 1 Construction Phase charges. 000.01.09A.092000.X.TC will be grouped with the Area 1 Trade Contractor charges. 000.02.925.940101.Z.CFL will be grouped with the Area 2 Construction Phase charges.


5. Bid Package 000.01.900.910100.Z DRL will be grouped with the Area 1 900 bid package. 000.01.925.940100.Z.CFL will be grouped with the Area 1 925 bid package. 000.01.09A.092000.X.TC will be grouped with the Area 1 09A bid package. 000.02.925.940101.Z.CFL will be grouped with the Area 2 925 bid package.

Group Maximums In addition to grouping costs for billing purposes Group Codes also allow Gilbane to apply Group Maximums. Group Maximums used for GMP’s (Guaranteed Maximum Price) that are included in the Gilbane / Owner contract. When a Group Maximum is entered CMiC will not allow the user to bill over the maximum amount.

The Gilbane / Owner contract has dictated that Area 1 General conditions have a GMP of $300,000 and Area 2 General Conditions have a GMP of $200,000. The user can enter the Group Maximum of $300,000 for Area 1 General Conditions (group 3, 000.01.XXX.9) and $200,000 for Area 2 General Conditions (group 3, 000.02.XXX.9) The XXX represents that the bid package is not used in the calculation so the bill codes can have different bid packages but still roll up to the same General Conditions Group.

When Group Maximums are created a corresponding Phase and Bill Code is created to handle any overruns. As long as the billing amount stays under the Group Maximum the additional Phase/Bill code shows $0. If the billing amount exceeds the Group Maximum then the overage amount is associated with this bill code and as a result will reduce the Gilbane Fee.

Approved changes that increase the Billing Budget Amount will also increase the Group Maximum automatically.


Billing Types Billing types describe how CMiC calculates the amount that should be billed. Gilbane uses three bill types: Cost Type Description COST The charge to the Phase Code is sent through the billing rate table

where the applicable multiplier is applied. This amount is then billed to the owner. This is the default selection and is typically used for Cost Plus items. An example of how this works is provided in the Billing Rates section.

PC (Percent Complete)

The current amount charged for the Phase Code (i.e. approved subcontractor RFP, Gilbane employee charges, etc) is divided by the total Cost Budget. This amount is then multiplied by the total Billing Budget and that is the amount that is billed. This is typically used for Lump Sum items.

BPB (Burdened Billing)

Allows the user to enter a percentage amount that is applied to the billing amount of another Phase Code or group of Phase codes. For example on the Fee line item you may enter in 2% of all Subcontractor and General Condition billing amounts. For that months bill the system will bill the Fee at 2% of that total. For this code you will setup the Phase Codes that apply via the Details button. This will be discussed in more detail alter in this section.

A Bill Code is setup as a PC Bill Type; it has a total Cost Budget of $100 and a total Billing Budget amount of $200 dollars. For this month $20 in approved costs have been accrued. The system will divide 20 by 100 for a total 0.2. 0.2 will be multiplied by the total billing amount of $200, giving us a total of $40. Gilbane would bill the Owner $40 dollar for that Bill Code on the Invoice.

The Fee Bill Code is setup as a BPB Bill Type. The Bill Code is set to calculate a 3% fee on all approved charges for the month (trade contractor and general conditions. For the month there was a total of $100,000 worth of billing that we will invoice the owner for. To determining the billing amount for the Fee, the system multiplies $100,000 by .03. The amount we will bill for Fee on the invoice is $3000.


Billing Rate Table The Billing Rate table is used to enter the multipliers used for converting accrued costs to the billing amount sent to the owner. This is used for all transactions for Bill Codes that have a COST bill type. Users can set billing rates for specific employees, Jobs, Phase Codes, Category Codes or any combination of those three items. When a transaction occurs it is run through the Billing Rate table to identify how much Gilbane should charge the owner based on the contract that was signed.

The Gilbane / Owner contract specifies that Gilbane can charge %150, or a 1.5 multiplier, for all charges associated with Construction Field Labor. On the Billing Rate table I set up a 1.5 multiplier for the Category Code CFL (see the CFL line in the image above. As employees that work on the Job log their time in E-Time the charge is sent through the Bill Rate table to identify the billable amount. If an employee charged a $100 worth of time to a CFL Bill Code then Gilbane would be able to bill the owner $150.


Requests for Payment (Project Controls and Accounts Payables) RFP’s are processed in one of two modules, Project Controls or Accounts Payable. If the invoice is for work performed as part of a subcontract associated with a Job then the RFP is processed in Project Controls. If the invoice is form a supplier or other non-contracted entity it is processed in Accounts Payable. As subcontractors perform work they will submit Requests for Payment (RFP). Gilbane utilizes a scanning technology that takes the detail from the RFP and automatically populates CMiC. As RFP’s are received they go through an approval process to validate that the stated work has been performed. Approved amounts become available for selection during the Gilbane/Owner invoice process. CMiC uses a pay when paid functionality so Gilbane will pay the subcontractor only after receiving the appropriate funds from the owner.

Above is an example of a RFP for Emcor Group. The subcontractor is requesting payment of $25,000 for work performed on Task 1 of their contract. Once the RFP is approved by Gilbane the amount will be available for billing to the owner.


Generating the Invoice (Job Billing) Gilbane typically bills the owner once a month. Each month the accountant will generate an Invoice for the Owner. When generating the invoice the accountant will be able to select which transactions should be billed. Available transactions include: Transaction Description Gilbane Employee Time

All approved time that has been charged to the Job will be available for billing to the owner. If there is a Bill Rate multiplier setup for the employee, phase code, or category type the time charge will be sent through the multiplier to determine the amount that can be charged.

Approved Subcontractor RFP’s

All RFP’s that have been approved during the month will be available for inclusion in the invoice.

Supplier Invoices

Non-contracted services such as office supplies.

The accountant has the ability to include charges or defer them. They can also override any amounts if needed. Once the included charges are identified the accountant will be able to generate the invoice using the format required for the Job.

In the above example you see three cost transactions listed by Phase Code. The system allows the user to include the items in that months billing (the B column) or defer them (T or P). The user could also change the amount that should be billed if necessary.


Summary The purpose of setting up Billing is to enter the contract terms of the Gilbane/Owner contract so that Gilbane is paid accordingly. The Bill Rate table allows Gilbane to enter the proper markups/multipliers for services performed in accordance with the Gilbane/Owner contract. Bill Codes are used to track the amounts that we will ultimately invoice the owner for. Bill Codes are created in a 1:1 relationship with Phase/Category Code combinations. CMiC contains a standard grouping function that groups bill codes according to 5 different levels; Sub-Job, Area, General Conditions/Trade Contractor, Design/Construction Phase, and Bid Package. Group maximums can be applied for items that contain a GMP in the Gilbane / Owner contract ensuring Gilbane does not overbill for a service. With Billing setup all of the charges that accrue on a Job such as subcontractor costs, Gilbane personnel, and general conditions can be billed to the owner according to the contract terms established in the Gilbane/Owner contract. Generating and sending the invoice to the owner ends one month of tracking for the Job. The owner will receive the invoice and make payment to Gilbane which allows Gilbane to pay the subcontractors and suppliers that submitted approved RFP’s during that period. This process continues each month throughout the lifecycle of the Job.


Contract Forecast (Microsoft Excel) The Contract Forecast application is an important tool that allows Gilbane to compare the Cost Budget versus Billing Budget amounts for all Bill Codes. This provides an overview of the financial health of the Job. Contract Forecast utilizes an Excel format to display the Job’s financial data. The raw data is accessed from CMIC and displayed in a user friendly format that is highly customizable. In the application users can select from a variety of grouping formats to see Cost Budget and Billing Budget in many different ways. Contract Forecast is also used for entering in Estimates to Complete (ETC’s). This is where Gilbane personnel who charge the Job (Labor ETC) and other currently non contracts costs (Non Labor ETC) are entered. The Contract Forecast is generated each period for the Job. All of the costs and associated billing amounts are brought into the forecast by Bill Code. The project team can utilize this data to analyze trends, identify problem areas, and plan accordingly to ensure the project meets its financial goals.

In the above example you see a section of the Contract Forecast for the Job. The user has complete flexibility to increase or decrease the level of detail. In this example I have expanded the grouping to show me the Bill Code level detail. I am currently only viewing total Forecasted Cost (Budget) and Forecasting Billing (Budget). I could select to expand those sections to see more detail on committed costs, changes, comparison to last month and many other details.


Appendix

Glossary

CMiC Description JDE Description

Project/Job

Project is where subcontractors, contracts, etc. fall and job is assigned to a project and holds all cost information

Job Hold all information cost, contracts, subcontracts, etc.

J0XXXX.1234 Last four of job number and auto-sequence of contracts on job

Job Number (123456)

6-digit auto increment across company

Subcontract Change Order (SCO)

SCO-001 Amendment 001

Project Forecast

Cost Report

Billing Budget

Owner side cost for project Budget Owner side cost for project

Cost Budget Original estimated amount for cost side of project

Cost Original estimated amount for cost side of project

Phase Code Cost code

Potential Change Item (PCI)

Change Request (CR)

OS-0001, IS-0001, BT-0001, etc.

Auto-sequence of change by type, OS=out of scope change, for example.

CR-1234 Auto-sequence across all types

ATP Estimated amount on change to attain authorization to proceed from owner

CCA/BEA Estimated amount on change to attain authorization to proceed from owner

OCO Owner Change Order CO Change Order

PCI Type

PCI Selection type - at initiation of PCI change, PCI Type drives Auto-Sequence numbering based on the selection type chosen: BC-00001 Back Charge BT-00001 Budget Transfer TA - Trade Allowance IS-00001 - In Scope OA-0001 Owner Allowance Out of Scope OS-00001 - Out of Scope

OCR=Y/N Owner Change Required = Yes or No


CMiC Description JDE Description

PCI Status

APP=Approved PAR= At Risk Proceeding POT=Potential PWA=Authorized Proceeding REJ=Rejected TRK=Tracking Only VOD=VOIDED

Cost/Budget Status 1-9, V

Cost and Budget status codes indicating In Scope, Out of Scope, Proceeding or not, Authorized or Not, Approved, Etc.

SCO Posting SCO Posting will replace pushing of Amendments and will be workflow driven

Proof/Final Push of Subcontract Amendments

Classifiers User Defined Codes for additional sorting for changes.

UDC Codes User Defined Codes for additional sorting for changes.

Date post:	08-Mar-2018
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CMiC Basics - Gilbane Building Company | Gilbane ... are used to manage the Job, key functions...

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