5. Cost Tracking
As the job progresses, I keep a running total of labor,
material, and subcontractor expenditures, broken down by the
construction categories I use to estimate the job. The summary
report gives a complete financial picture of the job, comparing
estimated costs to actual expenses (see Figure 5, below). Since
I keep these records on a spreadsheet, it’s a simple
matter to print out regular updates and put them in the job
notebook.
|
Emerson
| Account
Balance Statement |
|---|
|
|
As of: 7/30/99
|
|---|
|
Category
|
Dump
Fees
|
Demo
|
Framing
|
Exterior
|
Cabinets
& Trim
|
HVAC
(N.I.C.)
|
Flooring
& Clg
(N.I.C.)
|
Drywall
|
Paint
(N.I.C.)
|
Misc.
|
|---|
|
Labor
| | | | | | | | | | |
|---|
Estimate Value
|
600
|
2,280
|
1,440
|
1,520
|
1,680
|
1,161
| |
640
| | |
Total spent to Date
|
220
|
1,152
|
1,213
|
1,025
|
1,430
|
395
|
695
|
725
|
70
| |
Labor $ Remaining
|
380
|
1,128
|
227
|
495
|
250
|
766
|
(695)
|
(85)
|
(70)
| | |
|
|---|
|
|
|---|
|
Materials
| | | | | | | | | | |
|---|
Estimate Value
| | |
560
|
1,200
|
5,600
| | |
575
| |
100
|
Total Spent to Date
| | |
220
|
1,131
|
5,368
| | |
540
|
500
|
63
|
Material $ Remaining
| | |
340
|
69
|
232
| | |
35
|
(500)
|
37
| |
|
|---|
|
|
|---|
|
Summary by Category
| | | | | | | | | | |
|---|
Labor $ Remaining
|
380
|
1,128
|
227
|
495
|
250
|
766
|
(695)
|
(85)
|
(70)
| |
Material $ Remaining
| | |
340
|
69
|
232
| | |
35
|
(500)
|
37
|
Total $ Remaining
|
380
|
1,128
|
567
|
564
|
482
|
766
|
(695)
|
(50)
|
(570)
|
37
| |
|
|---|
|
|
|---|
Original Estimate Value
| |
17,356
| | | | | | | | |
Total Spent to Date
| |
14,747
| | | | | | | | |
Total Remaining
| |
2,609
|
Does not include Change Orders
|
|
Figure 5.Updated job-cost
summaries make it easy for the job foreman to compare
estimated costs with actual costs as the job
progresses. |
Cost-tracking information is critical for people in the
office, but it’s also useful to the crew in the field. It
is helpful for the foreman to know, for example, that two
people were slated for two days of demo. The reports make it
possible to identify cost overruns early, and to adjust labor
allocations if the job starts to fall behind schedule. Since I
do a lot of time and materials work, these reports are also
useful to owners who want to stay informed on how close the
project is following the budget.
6. Invoices
This section of the notebook is used to store all invoices and
receipts throughout the job. When material is delivered, the
supplier invoice is labeled by the job foreman with the
appropriate construction category, such as "trim" or "roofing."
The foreman also keeps a running list in the notebook on a
columnar pad, showing the date, invoice number, supplier name
or initials, the amount, and the construction category (). This
cumulative sheet stays on site in the notebook where it’s
always available for easy reference.
This paperwork takes a few minutes to complete in the field,
but it makes a world of difference to me back in the office. At
the end of each week, I pick up the invoices and enter the data
into the cost-tracking system for the job. The invoices stay in
the office till the job is finished, but the running record of
invoices stays on site in the notebook. After the job is
complete, I collect all the invoices and store them in the
notebook for future reference.
7. Contracts and Change
Orders
This section is divided into two parts. The first part holds
copies of any contracts made between the owner and the builder.
Again, this eliminates the need for the field crew to check
with the office about any decisions that have already been
made.
The second part holds all paperwork relating to change
orders, including a copy of the company’s policy
regarding changes. In our system, all major change orders are
handled by the office, but smaller changes can be made in the
field by the owner and the foreman. This keeps the project on
schedule, eliminating the need to stop work while waiting for
approval from the office. For changes decided in the field, the
foreman uses a simple one-page form with blank spaces in which
changes are listed ( ). The owner initials each change in a
separate column, providing a written record of his or her
approval of the change. Like the materials sheet, this change
order form stays in the notebook on site, and provides a
running history of changes.
All formal change orders are drawn up in the office and a
copy is given to the foreman for the notebook. The advantage of
using the change order summary sheet is that most changes can
be approved quickly on site by the foreman and owner without
having to call the office. This system not only keeps the job
moving, but provides quick reference should a question arise
later about when a particular change was approved.
8. Permits
While the actual building permit is usually posted prominently
somewhere on site, I like to keep a copy in the notebook, along
with other pertinent information, such as a legal description
of the property, requirements from utility companies, and any
specifications required by the city or county. I also include
code-related information on safety and construction standards
as they apply to the particular job. It’s handy to have
this information at your fingertips during a building
inspection or a visit from OSHA.
9. Blueprints
The approved set of plans stays on the job site at all times,
so the blueprints stored in the notebook are used mainly at
meetings in the office. A set of plans reduced to 11x17 inches
can be folded once to fit in the binder, and can still be
reviewed without taking them out of the notebook. This is also
a convenient size to run through a copier if extra sets are
needed.
Also included in this section is a copy of the job
specifications, which for most residential projects are brief
enough to fit comfortably in the notebook. More lengthy specs
can be made to fit by photocopying two sides to a page.
10. Notes
Any
correspondence pertaining to the construction process should be
stored chronologically in this section. This includes letters,
notes, memos, and any other records of communications made
before or during the job. Since these types of notes accumulate
over time and are usually only needed if they cannot be found,
it’s handy to have them all in one place.
At the end of a project, we clip the punch list to the front
of the notebook. While the punch list tasks will also be listed
in the Daily Job Log, it’s helpful to see everything at a
glance. It’s also satisfying to see check marks appear in
those little boxes.
Rogers Belch
owns a
residential remodeling company in Annapolis, Md