Setup for Multi-Phased Projects

We are about to enter into agreements for several multi-phased projects.  The way I see it, we have the following three options when setting this up in Sage 300 CRE:

  1. Multiple Contracts, matched to Multiple Jobs;
  2. Single Contract, with multiple Jobs;
  3. Single Contract and Single Job, using Extras for each job.

I'm curious if anyone has any experience with or preferences for any of the above options (or an option that I'm missing). 

I like option 1, as everything is separated with regard to the job cost and contract, which seems like it would be easiest when complying with the new revenue recognition.  We do like the idea that if we have the same subcontractors on all phases/jobs, then we can issue a single commitment across all jobs and then just do Change Requests and Commitment COs on a single job basis.  To me the largest drawback is that we would not be able to generate a single pay application due to multiple contracts being used. 

Option 2 seems to solve the not be able to generate a single pay application problem, but then Contract Item numbering seems like it could get cumbersome as you would want to keep the projects and change orders together on the pay application.  Renumbering items in Contracts is a bit of a pain.

Option 3 does not seem to do much more than Option 2 and it seems like it would add an extra layer of analysis to our WIP schedule in determining the new % complete on each phase/sub-job in order to comply with the new revenue recognition standard. 

Any thoughts or insights would be greatly appreciated!

  • Hi TMCC,

    For option 2, you could also have your contract item ID numbers reformatted to make adding and sorting easier. For example, using our sample data, if you wanted to setup a contract to bill Job 03-001, 03-002, and 03-003, you could change you contract item IT format to be XXX-XXX and set them up like 001-010, 001-020 (Job 003-001, Item 1) Then change orders would be like 001-011 (Job 03-001, Item 1, Change order 1). You could also use a format like XXX-XX-XX for this.

    Option 3 would also work, in fact, that's a perfect example of what the Extras we designed for in the software, however you would also need to address the contract item ID question to make sure new items sort the way you want them to. As for as your WIP reporting, if you have several of these projects it may be worth it to have the WIP scheduled reports modified to report the jobs and extras they way you need them to.