Prime Contract Budgets Overview

Below are the four types of "original" budgets that can be established in the Prime Contract and set per Job Cost Code.

Contract Amount or Guaranteed Maximum Price (GMP)

Data Entry Steps: View

Contract Type = Fixed Lump Sum:

Fixed Lump Contracts are widely used in the construction industry and are agreements where a certain scope of work will be performed for a fixed amount. Regardless of whether the work takes more or less time, the lump sum is paid, unless there are changes to the scope of work which is processed through a Change Order (CO). For these types of contracts, the fixed lump sum amount is broken down into a list of items referred to as Schedule of Values (commercial term) or Bank Draws (residential term).

Contract Type = Cost Plus Without GMP:

There is no Contract Amount or GMP value for this type of contract. Actual expenses and timecards will be imported directly into the Prime Contract Invoice.

Contract Type = Cost Plus With GMP:

Like Cost Plus without GMP, expenses and timecards will be imported into Prime Contract Invoices but the sum of all invoices will be compared to the GMP value. Thus, the GMP is essentially the sum of the max contract amount for each cost code.

Contract Type = Unit Price:

Contract amount for Unit Price is actually an estimated value since the placed or excavated quantities documented in the field will be what is invoiced. Thus, at the end of the project the invoiced quantities could be greater or less than the estimated values documented in the Prime Contract.

Cost Budgets

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Cost Budgets do not include markups (eg. fee) and will be compared to actual costs such as POs, Subcontracts, and Timecards. Since Corecon includes five built-in resource types (materials, labor, equipment, sub and other), cost budgets can be entered for each resource and Job Cost Code. The cost code's total budget will be the sum of the five resource budgets.

Labor Hour Budgets

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Labor Hour Budgets should only be defined if Labor Timecards will be entered for the Project and Job Cost Code. For example, if there are 100 Cost Codes for the project and only 15 will be applicable to labor then budgets should be set for only those 15 codes. The remaining should be zero (0).

Equipment Hour Budgets

Data Entry Steps: View

Similar to Labor but for Equipment Timecards.