Project Monthly Cost Report

The owner of the project often requests monthly documentation and reports in addition to the requisition to detail the cost incurred for the project, along with anticipated and pending costs, to develop a projection for the total cost to complete the project. Exhibit 20-11 contains a monthly payment estimate summary. Exhibit 20-12 shows a project monthly cost report.

Exhibit 20-11

Monthly payment estimate summary.

Project Title

Project No.

Contractor

Period to

Contract or Spec No.

Date

Description

General Earnings Including Materials on Hand

Amounts

Previous

This Month

To Date

Deduction % of Work Done

Deduction After_% of Work is Done

Deduction_% of Material on Hand

Total Deduction

Net Earning

% Work Completed

% Time Elapsed

% Work Completed

Contract Completion Data

Notice to Proceed Received by Contractor .

Contract Completion Time

Contract Completion Date

As ammended by Change Order No.

Submitted by (Signature & Title)

Administrative Review - Final Payments

Approved by (Signature & Title)

Approved by - Final Payments

Exhibit 20-12

Project monthly cost report.

Project Title_ Owner__

For Period Ending_

Project Title_ Owner__

For Period Ending_

Contract No.

Modif. No.

WORK ITEM

WEIGHT VALUE IN PERCENT OF TOTAL

STATUS PREVIOUS REPORT (PERCENT)

STATUS

THIS REPORT (PERCENT)

COMPLETED DURING THIS REPORTING

PERIOD (PERCENT)

REMARKS

THIS MONTH PROJECT TOTALS

100.00

Modif. No.

SUMMARY

• Cash is king and is the lifeblood of a project.

• If you want to keep subcontractors motivated, work them hard and pay them well and on time.

• Financial control of the project is as important as completing the project on schedule, within budget, with high quality, and with a satisfied client.

• Requisition procedures need to be set up at the beginning of the project to ensure timely payments. Often a schedule of values is developed, which breaks down the contract value by item or trade to facilitate the requisition process.

• Schedule a monthly walkthrough with the owner, architect, and engineer to review the status of the project, and determine the appropriate percentage of completion of each item on the schedule of values for the contract amount. By taking the schedule of values and multiplying it by the percentage of work complete for that month, the new requisition amount can be easily determined.

• Requisitions are normally submitted each month, with a 30-day payment cycle. The contractor needs to have sufficient access to cash to make required payments during the process, from working capital, bank lines of credit, personal loans, factoring, etc.

• At times special requisition arrangements need to be made for start-up companies that are not well capitalized and for special deposits required for orders.

Waivers of lien need to be submitted with each requisition to document receipt of prior payments and payment of all amounts invoiced for to date, along with the final payment.

A retainer is often held by the owner to cover items of work not completed in accordance with the contract, punch list, deficiencies, damages, etc.

Ensure that a line item in the schedule of values is included for project mobilization to allow this cost to be invoiced during the start of the project, rather than prorated with the balance of the work as performed. Pay off original invoices, and not Xerox or faxed copies.

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Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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