What is a Budget Analysis?

Percentage of completion (POC) is a metric that represents the proportion of work completed on a construction project at a given point in time. It is expressed as a percentage of the total contracted work. The POC is important to subcontractor workflows for several reasons:

• Payment schedules: Most construction contracts stipulate that subcontractors receive payment based on the percentage of work completed rather than a lump sum payment at the end of the project. The POC determines the amount of payment that a subcontractor can request from the general contractor (GC) or the project owner for the work performed during a specific billing period.
• Cash flow management: Subcontractors rely on progress payments to maintain a healthy cash flow and cover expenses such as labor, materials, and equipment. The POC directly impacts the timing and amount of progress payments received, allowing subcontractors to plan and manage their financial resources effectively.
• Project monitoring and control: Tracking the POC helps subcontractors monitor their progress against the project schedule and budget. It enables them to identify potential delays or cost overruns early on, allowing for prompt corrective actions.
• Dispute resolution: In the event of disputes or claims related to payment or project delays, POC documentation can serve as evidence to support the subcontractor's position and substantiate their claims for outstanding payments or compensation.
• Resource allocation: By monitoring the POC, subcontractors can better plan and allocate their resources (labor, materials, equipment, etc.) across multiple projects, ensuring efficient utilization and avoiding resource conflicts or shortages.
• Project closeout: The POC is crucial during the project closeout phase, as it helps determine the final payment due to the subcontractor and ensures that all work has been completed according to the contract terms.

Overall, POC serves as a versatile tool throughout the entire project lifecycle, from initial payment requests to final closeout. And with Siteline, managing POC workflows becomes effortless. Siteline makes progress billing a cinch by:

• Generating custom pay applications with real-time POC calculations
• Offering intuitive dashboards for clear financial visualization and decision-making
• Integrating with GC payment portals for accurate, timely pay application submissions
• Centralizing all documentation for enhanced collaboration and communication

Book a demo today to experience how Siteline can empower your team to make informed decisions, maintain a steady cash flow, and ensure successful project closeouts.

A backup in the construction industry is a way to safeguard data and ensure business continuity in the case of unexpected events, such as computer system crashes or accidental file deletion. It involves creating duplicates of data stored in software applications, databases, and digital files, which are typically saved on external devices or cloud storage systems. Hence, in case the originals are lost or corrupted, the backed-up data can be restored with minimal disturbance or downtime. For example, if the blueprint data of a construction project is accidentally wiped out, a well-executed backup system can restore the vital information, preventing project delays. It's integral to Plan Risk Management to counter data loss events, which in the construction sector can cripple project management systems, delay timelines, escalate costs, and affect architectural integrity if not addressed promptly and effectively.

Canned reports are predefined reports that provide information about various construction processes. Unlike ad-hoc reports—which are customized each time they’re run—canned reports follow standard layouts and include pre-set fields that provide consistent information on an ongoing basis. Subcontractor account teams can set these fields to include data related to project progress, labor costs, equipment utilization, material usage, safety incidents—anything that they frequently compile for their analysis or are required to report to other stakeholders.

The key benefit of canned reports is having regularly scheduled visibility into key metrics and insights without recreating the same reports and analyses each time. This enables subcontractor accounting teams to focus less on compiling data and more on strategic analysis and monitoring. Furthermore, they provide quick, comprehensive visibility into a company’s financial processes to help accountants identify issues early on, analyze costs and variances, validate invoices, and ensure compliance on an ongoing basis.

Canned reports are typically generated from construction project management or accounting software. However, when it comes to accounts receivable (A/R) and billing reporting, Siteline takes the cake. With Siteline, subcontractors can easily:

• View the status of all their pay apps—filterable by various project details—to stay on top of collections.
• Track and compare GC payment times and benchmark their performance to inform bid prices.
• Analyze overhead costs and cash flow health to optimize financial performance.
• Evaluate A/R performance by office and project manager to identify successes and opportunities.

See for yourself! Schedule a personalized Siteline demo today and learn how our A/R and billing reporting capabilities can strengthen your construction business.