U.S. patent application number 13/674847 was filed with the patent office on 2013-03-14 for administering contracts over data network.
This patent application is currently assigned to HART BUSINESS SOLUTIONS, LLC.. The applicant listed for this patent is HART BUSINESS SOLUTIONS, LLC.. Invention is credited to Todd BARBOUR, Stephen COLE, Sherwood CREEDLE, James C. PETERSEN.
Application Number | 20130066755 13/674847 |
Document ID | / |
Family ID | 40156602 |
Filed Date | 2013-03-14 |
United States Patent
Application |
20130066755 |
Kind Code |
A1 |
PETERSEN; James C. ; et
al. |
March 14, 2013 |
ADMINISTERING CONTRACTS OVER DATA NETWORK
Abstract
A method is provided for integrating a contract administration
project and a corresponding accounting job via a graphical user
interface of a web client. The method includes retrieving contract
administration data corresponding to the project from a web server
over a first data network, the contract administration data
including a schedule of values having multiple line items;
retrieving accounting data corresponding to the corresponding
accounting job from an accounting system over a second data
network, the accounting data including a job file having multiple
job items; and mapping the contract administration data to the
accounting system data. The mapping includes matching a line item
of the schedule of values with at least one job item of the job
file.
Inventors: |
PETERSEN; James C.;
(Richmond, VA) ; COLE; Stephen; (Durham, NC)
; BARBOUR; Todd; (Chapel Hill, NC) ; CREEDLE;
Sherwood; (South Hill, VA) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
HART BUSINESS SOLUTIONS, LLC.; |
South Hill |
VA |
US |
|
|
Assignee: |
HART BUSINESS SOLUTIONS,
LLC.
South Hill
VA
|
Family ID: |
40156602 |
Appl. No.: |
13/674847 |
Filed: |
November 12, 2012 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13194516 |
Jul 29, 2011 |
8326755 |
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13674847 |
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12137680 |
Jun 12, 2008 |
8015113 |
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13194516 |
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60943746 |
Jun 13, 2007 |
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Current U.S.
Class: |
705/30 |
Current CPC
Class: |
G06Q 40/12 20131203;
G06Q 10/0639 20130101; G06Q 10/06375 20130101; G06Q 10/10 20130101;
G06Q 30/0601 20130101 |
Class at
Publication: |
705/30 |
International
Class: |
G06Q 40/00 20120101
G06Q040/00 |
Claims
1. A method for integrating a contract administration project and a
corresponding accounting job via a graphical user interface of a
web client, the method comprising: retrieving contract
administration data corresponding to the project from a web server
over a first data network, the contract administration data
comprising a schedule of values having a plurality of line items;
retrieving accounting data corresponding to the corresponding
accounting job from an accounting system over a second data
network, the accounting data comprising a job file having a
plurality of job items; and mapping the contract administration
data to the accounting system data, the mapping comprising matching
a line item of the schedule of values with at least one job item of
the job file.
2. The method of claim 1, further comprising: updating the
accounting data based on a change order; and subsequently updating
the contract administration data based on the updated accounting
data uploaded to the web server.
3. The method of claim 1, further comprising: receiving an
application for payment from a participant in the project over the
first data network, the application for payment comprising at least
one entry corresponding to one of the plurality of line items;
downloading the at least one entry to the accounting system over
the first and second data networks in real time; and generating an
accounts payable invoice at the accounting system incorporating the
at least one entry.
4. The method of claim 3, further comprising: reconciling actual
costs of the accounting job based at least in part on the
application for payment.
5. The method of claim 1, further comprising: uploading job cost
information from the accounting system over the second data
network; and preparing a general contractor application for payment
using the job cost information from the accounting system.
6. The method of claim 1, further comprising: downloading at least
one entry of the general contractor application for payment to the
accounting system over the second data; and generating an accounts
receivable invoice at the accounting system incorporating the at
least one entry.
7. The method of claim 1, further comprising: validating that the
line item of the schedule of values has been mapped to the at least
one job item.
8. A computer readable medium storing code, executable by a
computer processor, for integrating a project in a contract
administration program and a corresponding job in an accounting
system, the project comprising at least one subcontractor schedule
of values (SOV) corresponding to at least one subcontractor and a
general contractor SOV corresponding to a general contractor, and
the job comprising at least one commitment corresponding to the at
least one subcontractor SOV and a contract corresponding to the
general contractor SOV, the computer readable medium comprising:
subcontractor associating code for associating line items of the at
least one subcontractor SOV of the contract administration program
with commitment entry items of the corresponding at least one
commitment of the accounting system; general contractor associating
code for associating line items of the general contractor SOV of
the contract administration program with contract entry items of
the corresponding contract of the accounting system; subcontractor
importing code for importing a subcontractor application for
payment (AFP) from the at least one subcontractor into the
accounting system and creating at least one corresponding accounts
payable (A/P) invoice for the at least one subcontractor; creating
code for creating a general contractor AFP based at least in part
on the subcontractor AFP; and general contractor importing code for
importing the general contractor AFP into the accounting system and
creating at least one corresponding accounts receivable (A/R)
invoice for the general contractor.
9. The computer readable medium of claim 8, wherein the creating
code comprises uploading code for uploading the at least one A/P
invoice to the contract administration program from the accounting
system via the interface, wherein the general contractor AFP is
created using the uploaded at least one A/P invoice.
10. The computer readable medium of claim 8, wherein creating the
general contractor AFP comprises using the subcontractor AFP
without the at least one A/P invoice.
11. The computer readable medium of claim 8, further comprising:
subcontractor validating code for validating that the line items of
the at least one subcontractor SOV have been mapped to the
commitment entry items of the corresponding at least one
commitment; and general contractor validating code for validating
that the line items of the general contractor SOV have been mapped
to the contract entry items of the corresponding contract.
12. The computer readable medium of claim 8, wherein the job is
created in the accounting system first, and the at least one
subcontractor SOV and the general contractor SOV are created
automatically based at least in part on the at least one commitment
and the contract of the previously created job.
13. The computer readable medium of claim 8, wherein the project is
created in the contract administration program and the job is
created separately in the accounting system, the computer readable
medium further comprising: mapping code for subsequently mapping
the at least one subcontractor SOV and the at least one commitment
to one another.
14. The computer readable medium of claim 13, further comprising:
comparing code for comparing dollar amounts of the at least one
subcontractor SOV and the at least one commitment to validate
accuracy of the mapping.
15. The computer readable medium of claim 8, further comprising:
reconciling code for reconciling actual costs of the job based at
least in part on the subcontractor AFP and the general contractor
AFP.
16. A method for performing a contract administration project
having via a graphical user interface of a web client over a data
network, the method comprising: creating a schedule of values
relating to the project via the via the graphical user interface;
providing an estimated time of performance for the schedule of
values to be completed via the graphical user interface; receiving
at least one application for payment over the data network
applicable to the schedule of values; updating the schedule of
values based on the at least one received application for payment;
determining an actual time of performance based on the updated
schedule of values; and automatically comparing the actual time of
performance with the estimated time of performance to track
progress of the project.
17. The method of claim 16, wherein each of the estimated time of
performance and the actual time of performance is divided into a
plurality of corresponding time periods.
18. The method of claim 17, wherein comparing the actual time of
performance with the estimated time of performance comprises
comparing corresponding time periods, wherein the corresponding
time periods comprise months.
19. The method of claim 17, further comprising: automatically
generating a graph comprising a first line showing the estimated
time of performance and a second line showing the actual time of
performance; and causing the graph to be displayed via the
graphical user interface.
20. The method of claim 19, wherein the graph is generated
substantially in real time as the actual time of performance is
determined.
Description
[0001] This application is a divisional application of application
Ser. No. 13/194,516 filed on Jul. 29, 2011, which is a divisional
application to Ser. No. 12/137,680 filed on Jun. 12, 2008, granted
as U.S. Pat. No. 8,015,113, issued on Sep. 6, 2011, which claims
priority to U.S. Provisional Patent Application No. 60/943,746,
filed on Jun. 13, 2007, and U.S. Provisional Patent Application No.
61/060,530, filed on Jun. 11, 2008, and is related to U.S. patent
application Ser. No. 10/673,142, filed Sep. 30, 2003, and which
claims priority of U.S. Provisional Patent Application No.
60/415,762, filed on Oct. 4, 2002, the disclosures of which are
expressly incorporated by reference herein in their entireties.
BACKGROUND OF THE INVENTION
[0002] 1. Field of the Invention
[0003] The present invention relates to the field of contract
administration. More particularly, the present invention relates to
efficiently administering a construction contract over a commonly
accessible data network.
[0004] 2. Background Information
[0005] Administration of a construction contract is a difficult and
time consuming task. Typically, the efficiency with which a
contract is administered means the difference between a profitable
and unprofitable contract performance, especially from the point of
view of the general contractor.
[0006] The traditional roles involved in procurement and
construction of building and other structures include the owner,
the architect, the general contractor and the subcontractor. The
architect creates the design of the building or structure through a
separate contract with the owner. The design and specification of
the project are necessarily quite detailed to enable competing
entities to accurately prepare estimates for performing the work
and to assure the integrity of the finished structure with respect
to the conceptualization. The architect will also normally act as a
liaison between the owner and the general contractor, assuring that
the project is proceeding and payments are made according to the
contract. The architect is also responsible for approving any
change orders that are submitted for review by the general
contractor over the course of the project.
[0007] The general contractor is typically selected by the owner
and/or architect through a competitive bidding process based on the
detailed design of the project. Each prospective general contractor
elicits bids or proposals from subcontractors specializing in areas
of contract performance, such as site preparation, plumbing,
electrical, masonry, roofing and the like. The general contractor
prepares its bid or proposal generally using the subcontractors'
estimates, together with its administrative overhead and a
percentage markup. Typically, the proposal includes an itemized
list or schedule of tasks to be accomplished in furtherance of the
project, known as line items. The subcontractors likewise prepare
their estimates, based on the design documents provided by the
architect, by determining materials and labor needed to accomplish
the tasks specific to their respective specialties. The
subcontractors also factor in their administrative overhead and
percentage markup, and provide their proposed schedule in the form
of line items. The subcontractor line items do not generally match
the general contractor line items, although each of the
subcontractor line items must fit within a line item proposed by
the general contractor. Possibly, all of a particular
subcontractor's proposed labor, materials, overhead and markup may
fall within a single line item of the general contractor.
[0008] The owner and/or architect awards the contract to the most
desirable general contractor, based on any number of factors. For
example, the award may be based solely on the lowest bid of a
qualified general contractor. Alternatively, the award decision may
include consideration of a weighted combination of factors,
including price, experience, references, time availability, or any
other factor deemed significant by the owner and/or architect. The
selected general contractor then enters a contract with the owner
and/or architect, essentially committing the general contractor to
the proposed price and schedule. The general contractor in turn
contracts with each of its subcontractors to commit them to their
respective prices and schedules.
[0009] As work on the project under the contract proceeds, periodic
payments are made to the general contractor and the subcontractors.
The progress of the project and the corresponding payments are
closely tracked to assure that the owner is not paying for work
that has not yet been performed (unless the owner has agreed to
allow the general contractor to "frontload" progress payments, as
discussed below) and that the general contractor and the
subcontractors are being paid for work that has been performed.
Tracking the progress is complicated by the fact that dozens of
subcontractors, whose activities are coordinated by the general
contractor, are performing integrated tasks at various stages of
completion. Each request for payment, each change order request,
each payment, and their effects on the status of the overall
project presents a significant accounting challenge. Further,
contracts often provide for retainage, which is a predetermined
percentage of payments held back or retained by the owner until the
project has been completed to its satisfaction. Therefore, the
amount of payments likewise needs to be accurately tracked to
protect the agreed upon retainage amount.
[0010] Also, various criteria may need to be met before entering a
contract or subcontract, or before making payment to a contractor
or subcontractor for completed work. For example, a general
contractor may not retain a subcontract who is unable to produce an
appropriate insurance certificate or requisite license, for
example. Also, a final payment may be withheld unless the general
contractor and/or subcontractors provide a lien waiver, indicating
that no mechanic's liens will be filed against the property once
the requested amount of payment is receive. Likewise, proof of
various incurred costs may be required, such as a payroll
certificate, indicating payment of employees.
[0011] Computer programs have been developed to assist owners,
architects and/or general contractors track progress and status of
construction projects. However, these programs rely on conventional
submission of payment requests and require manual data entry in
order to function properly. There currently is no efficient way in
which the various contracting parties can efficiently communicate
and exchange data relating to the status of contract performance,
submission and approval of payment requests, submission and
approval of change orders, and the like.
[0012] The present invention overcomes the problems associated with
the prior art, as described below.
SUMMARY OF THE INVENTION
[0013] The present invention relates to a computer-based method for
administering a construction contract, in which all parties to the
contract (and any associated subcontracts) access a common server
over a data network, such as the Internet, and provide contract
schedules and requests for payment based on performance of work in
accordance of the schedules.
[0014] An aspect of the present invention provides a method for
administering performance of a contract over a data network. The
method includes storing a lien waiver; receiving an application for
payment over the data network from a contract participant based on
performance under the contract; and retrieving the stored lien
waiver and sending the retrieved lien wavier to the participant via
the data network upon approval of the application for payment. The
method may further include inserting at least one data tag in the
lien waiver prior to storing the lien waiver, and uploading the
lien waiver, including the at least one data tag, to a web sever
via the data network. The uploaded lien waiver may be stored in a
database accessible by the web server.
[0015] Another aspect of the present invention provides a method
for administering performance of a project over a data network. The
method includes creating a general contract schedule of values
relating to the project, the general contract schedule of values
having multiple general contract line items, each of which
identifies an associated number of units, a cost per unit and a
scheduled value based on the number of unit multiplied by the cost
per unit. The method further includes receiving at least one
subcontract schedule of values via the data network, the
subcontract schedule of values having multiple of subcontract line
items, and associating the subcontract line items of each
subcontract schedule of values and the general contract line items
of the general contract schedule of values. At least one
subcontract application for payment is received via the data
network, the subcontract application for payment including the
subcontract line items. The general contract line items, including
the associated number of units, are updated based on information in
the associated subcontract line items received in the subcontract
application for payment. A general contract application for payment
is created based on the updated contract line items.
[0016] Another aspect of the present invention provides a method
for administering performance of a project. The method includes
retrieving contract administration data corresponding to the
project from a web server over a first data network, the contract
administration data including a schedule of values having multiple
line items; retrieving accounting data corresponding to the project
from an accounting system over a second data network, the
accounting data including a job file having a multiple job items;
and mapping the contract administration data to the accounting
system data. The mapping includes matching a line item of the
schedule of values with at least one job item of the job file. The
method may further include updating the accounting data based on a
change order and subsequently updating the contract administration
data based on the updated accounting data uploaded to the web
server.
[0017] Another aspect of the present invention provides a method
for administering performance of a contract over a data network.
The method includes electronically storing at least one document
relating to the contract in a database; creating one of a schedule
of values, identifying work to be performed under the contract, and
an application for payment, identifying work completed under the
contract, at a server in the data network; selecting the at least
one document from the database; and uploading the selected document
from the database to the server. The uploaded document is attached
to the schedule of values or the application for payment, and the
schedule of values or the application for payment is submitted from
the server to a party under the contract over the data network.
Notes may be added to the selected document prior to uploading the
selected document from the database.
[0018] Another aspect of the present invention provides a method
for administering performance of a project over a data network. The
method includes creating a schedule of values relating to the
project at a web server in the data network and providing an
estimated time of performance for the schedule of values to be
completed. The method further includes receiving at least one
application for payment over the data network applicable to the
schedule of values; updating the schedule of values based on the at
least one received application for payment; determining an actual
time of performance based on the updated schedule of values; and
automatically comparing the actual time of performance with the
estimated time of performance to track progress of the project.
Each of the estimated time of performance and the actual time of
performance may be divided into corresponding time periods. Also, a
graph may be automatically generated, e.g., substantially at the
same time, including a first line showing the estimated time of
performance and a second line showing the actual time of
performance. The graph may be displayed at a graphical user
interface over the data network.
[0019] Another aspect of the present invention provides a method
for administering performance of a project over a data network. The
method includes creating a project profile and assigning roles to a
first participant and a second participant, at least the first
participant having an associated subsidiary. The method further
includes creating a general contract schedule of values relating to
the project for the first participant, the general contract
schedule of values having multiple general contract line items;
receiving at least one subcontract application for payment via the
data network from the second participant, the subcontract
application for payment including subcontract line items
corresponding to at least one of the general contract line items;
and updating the general contract line items based on the
corresponding subcontract line items received in the at least one
subcontract application for payment. The at least one subcontract
application for payment is approved, where both the first
participant and the subsidiary are authorized to approve the at
least one subcontract application for payment.
[0020] Yet another aspect of the present invention provides a
method for generating a work in process report relating to
performance of a contract over a data network. The method includes
creating a schedule of values including multiple line items
corresponding to work to be performed under the contract; receiving
at least one first application for payment via the data network,
the application for payment having costs associated with at least
one line item of the schedule of values; and creating a second
application for payment based on the at least one first application
for payment and the schedule of values. The second application for
payment is submitted for payment via the data network. The method
further includes automatically populating at least one data field
in the work in process report with cost information relating to the
at least one first application for payment; receiving an estimate
of total costs, including at least one additional cost item not
included in the at least one first application for payment; and
automatically calculating an estimated cost of completion based on
subtracting the cost information from the estimate of total
costs.
[0021] The various aspects and embodiments of the present invention
are described in detail below.
BRIEF DESCRIPTION OF THE DRAWINGS
[0022] The present invention is further described in the detailed
description that follows, by reference to the noted drawings by way
of non-limiting examples of embodiments of the present invention,
in which like reference numerals represent similar parts throughout
several views of the drawings, and in which:
[0023] FIG. 1 is a block diagram showing an exemplary network of
web clients accessing a common web server, according to an aspect
of the present invention;
[0024] FIG. 2 is a flowchart depicting an exemplary process by
which the general contractor initiates a project and establishes
the schedules of value, according to an aspect of the present
invention;
[0025] FIG. 3 is a flowchart depicting an exemplary process by
which the general contractor creates a project, according to an
aspect of the present invention;
[0026] FIG. 4 is a flowchart depicting an exemplary process by
which the general contractor creates a schedule of values,
according to an aspect of the present invention;
[0027] FIG. 5 is an exemplary web page for creating a schedule of
values, according to an aspect of the present invention;
[0028] FIG. 6 is an exemplary web page showing a schedule of
values, according to an aspect of the present invention;
[0029] FIG. 7 is an exemplary web page for associating
subcontractor schedules of values with a general contractor
schedule of values, according to an aspect of the present
invention;
[0030] FIG. 8 is a flowchart depicting an exemplary process by
which a subcontractor creates an application for payment, according
to an aspect of the present invention;
[0031] FIG. 9 is an exemplary web page for submitting a
subcontractor application for payment, according to an aspect of
the present invention;
[0032] FIG. 10 is a flowchart depicting an exemplary process by
which a contractor creates an application for payment, according to
an aspect of the present invention;
[0033] FIG. 11 is an exemplary web page for submitting a
subcontractor application for payment, according to an aspect of
the present invention;
[0034] FIG. 12A-12C are exemplary spread sheets indicating
corresponding application for payment submissions by a
subcontractor and a general contractor, according to an aspect of
the present invention;
[0035] FIG. 13 is a flowchart depicting an exemplary process by
which a lien waiver form is provided, according to an aspect of the
present invention;
[0036] FIG. 14 is an exemplary web page for providing a lien
wavier, according to an aspect of the present invention;
[0037] FIG. 15 is a flowchart depicting an exemplary process by
which supporting documentation is provided, according to an aspect
of the present invention;
[0038] FIG. 16 is an exemplary web page for providing supporting
documentation, according to an aspect of the present invention;
[0039] FIG. 17 is an exemplary web page for providing unit pricing
in a schedule of values, according to an aspect of the present
invention;
[0040] FIG. 18 is a flowchart depicting an exemplary process by
which unit pricing is included in a schedule of values, according
to an aspect of the present invention;
[0041] FIG. 19 is a flowchart depicting an exemplary process by
which cost forecasting is provided, according to an aspect of the
present invention;
[0042] FIG. 20 is an exemplary web page for cost forecasting,
according to an aspect of the present invention;
[0043] FIG. 21 is a block diagram showing an exemplary integrator
for interfacing with a system of record, according to an aspect of
the present invention;
[0044] FIG. 22 is a flowchart depicting an exemplary process by
which accounting data and contract administration data are
integrated, according to an aspect of the present invention;
[0045] FIG. 23 is an exemplary spread sheet indicating work in
progress reports, according to an aspect of the present invention;
and
[0046] FIG. 24 is a flowchart depicting an exemplary process by
which a work in process report is provided, according to an aspect
of the present invention.
DETAILED DESCRIPTION OF EMBODIMENTS
[0047] As stated above, the present invention is directed to
efficiently administering a construction contract using a server
accessible by the parties to the contract and/or the project
participants over a data network, such as the Internet. The
contract schedules, as well as the requests for payment based on
performance of work in accordance with the schedules, are provided
over the Internet, from any client capable of interfacing with the
Internet.
[0048] FIG. 1 depicts an exemplary network of users according to an
embodiment of the present invention. The parties to the contract
and the project participants are depicted as web clients for the
owner/architect 102, the general contractor 103, and the
subcontractors 104 and 105. Each of the web clients 102-105
communicates with a web server 52 over a packet switched data
network, such as a public Internet 50. The web server 52 has an
associated database 53, which may be internal to the web server 52
or a separate database. It is understood that the invention may be
implemented over any common data network accessible by the project
participants without departing from the spirit and scope of the
present invention.
[0049] Software implementing the contract administration program
resides on the web server 52. In an embodiment of the invention,
the software is GCPay.RTM., available from Hart Business Solutions.
The software may be based on any known programming languages and
techniques, including object oriented programming, that enables the
web server 52 to reliably interface with the web clients 102-105
and to execute the steps of the contract administration program
that is the subject of the present invention. The web server 52 may
operate running any known operating system and associated software,
including, for example, the Linux or Microsoft Windows operating
system and the Apache web server software, available from the
Apache Software Foundation, or the Jigsaw web server software,
available from World Wide Web Consortium (W3 C).
[0050] Each of the depicted web clients 102-105 includes a
graphical user interface, which incorporates a web browser, such as
Microsoft Internet Explorer, available from Microsoft Corporation,
Netscape Navigator, available from Netscape Communications
Corporation, or Foxfire, available from Mozilla Corporation. The
web clients 102-104 may be any device capable of communicating over
the Internet, such as a personal computer (PC), a laptop, a
personal digital assistant (PDA), an Internet compatible wireless
telephone, or the like. In an exemplary embodiment, the web clients
102-105 are implemented with IBM Pentium based PCs, running the
Linux operating system, available from, for example, Free Software
Foundation, Inc., or the Microsoft Windows operating system, and
running web browser software, such as Microsoft Internet Explorer,
Netscape Navigator or HotJava, available from Sun Microsystems,
Inc. The web clients 102-105 do not require special software to
interact with the web server 52, other than the conventional web
browsers.
[0051] Typically, the general contractor takes the lead in
administering a contract. The general contractor must fulfill
numerous obligations with respect to the contract, including
developing the initial proposal for performing the project,
executing a general contract with the owner, retaining and managing
subcontractors, overseeing contract performance, managing change
order requests, periodically submitting requests for payment and
interfacing with the owner and/or architect throughout performance
of the contract. Accordingly, it is anticipated that the general
contractor would be the entity responsible for initiating and
implementing the contract administration program of the present
invention. Therefore, the flowcharts discussed below are directed
to the process as implemented by the general contractor, although
any other party may initiate and implement the process without
departing from the spirit and scope of the present invention.
[0052] FIG. 2 is of flowchart depicting an exemplary process by
which the general contractor initiates a project and establishes
the schedule of values governing contract performance. As stated
above, the process is implemented pursuant to a computer program
executed at the web server 52. At step s208, the general contractor
registers with the contract administration program at the web
server 52. The general contractor simply accesses the Internet 50
from the general contractor web client 103 and enters the domain
name for a web site operated at the web server 52, such as
www.gcpay.com. The general contractor web client 103 and the web
server 52 interact through the Internet 50 in a known manner. For
example, in an embodiment of the invention, logic is executed by
the web server 52, which is accessed over the Internet 50.
[0053] The information received by the web server 52 is responsive
to prompting by the web server 52, which is programmed in a form
reasonably calculated to elicit the desired information. For
example, the web server 52 may display a table or form having blank
fields that the general contractor fills in based on the identity
of each field. Alternatively, the web server 52 may be programmed
to request information through discrete fields consecutively
displayed in a succession of web pages.
[0054] The registration process initially involves registering the
general contractor company, which includes receiving basic
information about the general contractor, including, for example,
the company name, telephone number, mailing address, federal tax ID
number, and the like. The basic information may further include
other pertinent information, such as small or disadvantaged
business status. Also, the identity of a company administrator is
entered. The company administrator has the capability and necessary
permission to perform numerous proprietary functions in the
contract administration program. For example, in an embodiment of
the invention, only the company administrator is able to register
the general contractor with the contract administration program,
create and delete projects and assign other company permissions,
discussed below. Therefore, in an embodiment of the invention, the
company administrator is identified through a user ID number and a
password, in addition to the company administrator's name, for
example. The security measures provide protection from unauthorized
access to proprietary contract performance data, although other
user permissions are able to access certain sets of data relating
to the contract.
[0055] In an embodiment, the contract administration program
enables the company (e.g., the general contractor) to identify
associated subsidiaries that may participate in construction
projects. The subsidiaries may be linked with the parent company
during the registration process, so that a new company does not
need to be created and registered every time a subsidiary is used.
In an embodiment, only the company administrator is able to add
subsidiary companies. A subsidiary is added to a project using
essentially the same steps as adding any other company (e.g.,
subcontractor) to the project. For example, the subsidiary company
registration includes receiving basic information, such as the
subsidiary company name, telephone number, mailing address, federal
tax ID number, small or disadvantaged business status, and the
like. The database 53 may be searched with respect to subsidiaries
and other companies, for example, by inserting the company name in
a search box of a search web page.
[0056] Using one login and password, approved users are able to
access the parent and related subsidiary companies. In an
embodiment, users (including the administrator) associated with the
parent company automatically have the same status with respect to
each associated subsidiary company. However, users created and
given certain permission in a subsidiary company are not
automatically users in the parent company or in other subsidiary
companies of the parent company. Rather, they must be invited to
the parent separately from the subsidiary. Once a subsidiary has
been associated with the parent and added to a project, the
associated users of the subsidiary may access the project using the
normal login and password.
[0057] In addition, information directed to the general
contractor's capabilities and qualifications may be included. For
example, scanned or electronic copies of the general contractor's
insurance certificates, surety bonds, time cards, certified
payroll, contractor licenses, work permits, invoices, letters of
reference, project portfolios, and the like, may be stored, e.g.,
in the database 53 or the web server 52, in association with the
general contractor. The same types of information may likewise be
stored in relation to subcontractors, which register separately, or
which are identified and maintained in the general contractor's
database.
[0058] Further, documentation used by the general contractor may be
stored in association with the general contractor information. For
example, the general contractor may have a standard lien waiver
form or other documentation that it requires its subcontractors to
use. The documentation may be logically attached to schedules of
value and/or applications for payment. Also, the documentation may
be in electronic form, such as a word processing formatted document
having fields which may be completed electronically, and which may
include an electronic signature or other electronic indication of
agreement with the contents. Alternatively the documentation may be
in scanned form, such as a PDF file of a scanned document that has
been completed and/or signed. Attaching documentation to be
submitted with schedules of values and/or applications for payment
are discussed further with respect to FIGS. 15 and 16, below.
[0059] In an embodiment, lien waivers, in particular, may be
created by the general contractor and uploaded to the database 53,
where it is accessible for use one various projects. Because the
general contractor creates the document, the lien waiver may
include whatever specific terms and conditions the general
contractor (and/or the owner/architect) require for a particular
job or regarding a particularly type of work. The general
contractor may upload multiple types of lien waivers, which are
anticipated to be used under different circumstances. For example,
the general contractor may prefer to use different types of lien
waivers depending on the identity of the owner/architect, the type
of work being performed, the identity of the subcontractor, the
type of payment, etc. Also, the general contractor may create and
upload conditional and unconditional lien waiver, where the
subcontractors must execute the unconditional lien waiver with
respect to final payment. Once the lien waivers are created and
uploaded, they may be accessed and used repeatedly by the
participants and/or be automatically identified and provided in
response to applications for payment, as discussed below. An
application for payment may require more than one type of lien
waiver.
[0060] FIG. 13 is a flowchart depicting an exemplary process by
which the general contractor creates and uses lien waivers,
according to an aspect of the present invention. At step s1312, the
general contractor drafts and stores a lien waiver in a word
processing or data format, such as a Microsoft Word document or as
a rich text format (RTF) document. Because the general contractor
creates the lien wavier, it determines the language and various
terms and conditions of the lien waiver to its satisfaction.
Alternatively, the general contractor may use (or be required by
the owner/architect to use) a standardized lien waiver form.
[0061] At step s1314, data tags are inserted in the lien waiver
form. The data tags enable the lien waiver forms to be
automatically completed with respect to projects, subcontractors,
dates, etc., for more efficient use. For example, the general
contractor may replace certain key words on the lien wavier form
with appropriately corresponding data tags. The following list
provides examples of data tags that may be used to customize the
lien waiver forms: [0062] ${project_name}--name assigned to the
project [0063] ${project_number}--number assigned to the project
[0064] ${project_location}--location of the project [0065]
${date}--current date [0066] ${afp_number}--application for payment
number [0067] ${application date}--date of the application for
payment [0068] ${period_to}--date through which the application for
payment runs [0069] ${total_due}--total due for the given
application for payment [0070] ${owner}--company providing the lien
waiver (e.g., the general contractor) [0071]
${owner_address1}--company address 1 [0072]
${owner_address2}--company address 2 [0073] ${owner_city}--city in
which the company is located/incorporated [0074]
${owner_state}--state in which the company is located/incorporated
[0075] ${owner_zip}--zip code in which the company is
located/incorporated [0076] ${contractor}--contractor or
subcontractor name [0077] ${contractor_address1}--contractor/sub
address 1 [0078] ${contractor_address2}--contractor/sub name [0079]
${contractor}--contractor/subaddress 2 [0080]
${contractor_city}--city in which the contractor/sub is
located/incorporated [0081] ${contractor_state}--state in which
contractor/sub is located/incorporated [0082]
${contractor_zip}--zip code in which the contractor/sub is
located/incorporated
[0083] At step s1316, the lien waiver form, including the data
tags, may be stored, for example, in Word or RTF format. The lien
waiver may be stored locally at the general contractor's computer
(e.g., the web client 103). At step s1318, the lien waiver form is
uploaded to the web server 52 and/or the database 53 from the web
client 103 for use during administration of the contract. FIG. 14
is an exemplary web page 1400 for uploading a previously created
and stored lien waiver form. The general contractor may navigate to
the lien waiver web page 1400 through a Welcome or Main page of the
contract administration program on the web server 52. Once the lien
waiver web page 1400 is accessed, an "upload lien waiver" button
1410 may be selected, which enables the user to browse files for
the previously created and saved lien wavier form (e.g., steps
s1312-s1316). Once the lien waiver form is selected, uploaded to
the web server 52 and/or stored in the database 53, a pop-up may
appear indicating the lien waiver has been successfully uploaded.
The lien waiver form is automatically included in the list of lien
waiver forms 1422 available to the contract administration program.
The user is then able to search for various lien waivers using the
"search" field 1420.
[0084] Once the lien waiver is uploaded, it is available for use on
any project. For example, at step s1320, the lien waiver may be
added to a designated project during project setup. The general
contractor accesses the contract administration web site on the web
server 102 through the Internet 50. From an initial web page, such
as a Welcome or Main page, the general contractor may click on a
lien waiver tab to access the lien waiver web page 1400, and select
the lien waiver from the lien waiver form list 1422, as discussed
above.
[0085] Once a lien waiver form is associated with a project, the
contract administration program automatically provides the lien
wavier to a subcontractor or other project participant at step
s1322 once a corresponding application for payment is approved (as
discussed below). For example, the contract administration program
may automatically generate the identified lien waiver form and
email it to the subcontractor to be executed. In other words, the
contract administration program may automatically provide a link to
the application for payment, so that the lien waiver is
electronically sent based on one or more data tags. Alternatively,
the general contractor may be prompted to generate the lien wavier
form after approving the request for payment.
[0086] Once the subcontractor receives the lien wavier form, e.g.,
at the web client 104, the lien waiver may be printed out, signed
and returned to the general contractor, by email or other delivery
method. When the general contractor receives the signed copy, an
indication of receiving the lien waiver must be entered for
tracking purpose. Alternatively, the general contractor allows the
subcontractor to electronically accept the terms and conditions of
the lien waiver, the acceptance being automatically forwarded to
the web server 52 for tracking Regardless, the general contractor
receives the executed lien waiver form at steps s1324.
[0087] In an embodiment, the contract administration program will
prevent subsequent applications for payment submitted by the same
subcontractor from being approved until it is noted that a
previously sent lien waiver has been executed and returned. For
example, the contract administration program may provide an alert
to the general contractor when the general contractor attempts to
approve the next application for payment.
[0088] Lien waivers may be routinely viewed, tested and removed
from the lien waiver web page 1400 of the contract administration
program. Also, in an embodiment, sample lien waivers are available
to the users, which may be selectively modified (using the web
client 103) and stored in the database 53 in association with the
general contractor information in essentially the same manner as
discussed above.
[0089] After the initial company registration, the general
contractor receives a Welcome web page or home page whenever it
accesses the web server 52. Users in addition to the company
administrator may be added or deleted, together with various levels
of permission. For example, the user permissions may include a
project manager, a company primary contact, a company auditor and a
project creator. The project manager is able to add and remove
project users and to edit project information and settings. The
company primary contact, which may coincide with the company
administrator, has the ability to receive email notifications when
project events occur, including submitting and reviewing schedules
of values, applications for payment and change order. The project
auditor can view audit trails for the project. The project creator
has the ability to build and edit new projects. The various user
permissions may all be granted to the same person, each to a
different person, or any combination of people, according to the
company administrator's discretion.
[0090] At step s210 of FIG. 2, a user from the general contractor
(e.g., the project creator or company administrator, identified
above) creates a new project by initially accessing the web server
52 from the general contractor web client 103 over the Internet 50.
It is assumed that the general contractor has already been awarded
the contract based on a previously submitted bid or proposal, based
in part on various bids and proposals submitted by the
subcontractors. Therefore, certain contractual terms are set, for
example, the overall contract price, the general contractor's
percentage mark-up, retainage (if any), procedures for change
orders, and other typical contract terms and conditions.
[0091] The user creates a new project by selecting a "create new
project" button, for example, on an introductory web page of the
contract administration program. The web server 52 accordingly
transmits a new project web page to the web client 103 to direct
the user through the project creation process.
[0092] In order to create a new project, the general contractor
first creates a project profile, as indicated in step s310 of FIG.
3. Creating a project profile is necessary so that the
relationships among the project participants are delineated to
enable the exchange of information through the web server 52.
Creating a project profile entails entering basic information
regarding the project. For example, the project profile may include
a project name, a project number, a contract start date and the
name of the general contractor. The general contractor may have
multiple projects which it tracks over the Internet 50 using the
contract administration program of the present invention, so the
project profile enables the general contractor to distinguish among
the various projects.
[0093] At step s312, the general contractor user assigns roles to
the participants of the project. The project participants are
referred to as "companies" for purposes of simplifying the
explanation, although it is understood that the project
participants may be any legal entity capable of contracting to
perform work on the project, including sole proprietors and
partnerships. In an embodiment of the invention, at least one
company must be assigned to each role of the project, i.e., an
owner, an architect and a subcontractor, in addition to the general
contractor. In an embodiment of the invention, the owner and the
architect are the same company because of the overlap in duties
between the two. For example, the architect typically reviews and
approves schedules of values, applications for payment and change
orders, while the owner typically approves release of funds,
although these responsibilities may be handled differently.
[0094] Each of the companies assigned a role must exist in the
database 53 of the web server 52. In fact, a general contractor may
perform multiple projects for the same owner/architect or using the
same subcontractors. If a company is not in the database 53, e.g.,
the company is not registered with the GCPay.RTM. service, it must
be added or a proxy is created to substitute for the missing
company. In alternative embodiments, the company administrator of
the general contractor or an administrator of the contract
administration program may create the proxy.
[0095] In order to create a proxy, the general contractor company
administrator, for example, registers the proxy company in the same
manner in which a company would register itself with the contract
administration program, but marks the company as a proxy. The
database 53 stores the name and other information of the company
for which a proxy is created. A web page listing, for example, of
the project participants indicates each company that is a
proxy.
[0096] When the general contractor project manager adds the proxy
company to the project, the system automatically adds the general
contractor's company administrator as the initial project manager
of the proxy project company, which is created in the same manner
as any normal registered company being assigned to the project by
the project manager or other qualified user of the general
contractor. The general contractor company administrator may access
a listing of proxy companies at the web server 52 from the web
client 103, for example. The general contractor company
administrator is automatically the company administrator for each
of the proxy companies, as well. The company administrator may
therefore assign permissions and the like with respect to the other
proxy users (e.g., also from the general contractor) for the proxy
companies. The assigned users perform all of the functions of the
subcontractors corresponding to the proxy companies, based on
information supplied by the represented company, typically a
subcontractor. When a proxy company needs to become a real company,
e.g., the proxy subcontractor eventually subscribes to the
GCPay.RTM. program, there is handover to the real company,
coordinated by the administrator of the contract administration
program.
[0097] The significance of a proxy from the general contractor
point of view is that the general contractor must enter the
contract performance data on behalf of the proxied company. For
example, a subcontractor that subscribes to and participates in the
GCPay service enters performance data directly to the web server 52
from the subcontractor web client 104 or 105. The performance data
includes, for example, a schedule of values, applications for
payment, change orders and the like, as discussed below. However, a
subcontractor that is not registered with the GCPay service
provides contract performance data through conventional means, and
the general contractor then enters the data into the contract
administration program at the web server 52 on behalf of the
subcontractor. It is self-evident that the present invention is
most efficient whenever all of the project participants are
likewise registered with the GCPay service.
[0098] The general contractor then assigns user permissions at step
s314. Included among the user permissions are company user
permissions within each participating company and project user
permissions with respect to the overall project. In an embodiment
of the invention, the company user permissions include the
following: a company administrator, who is able to edit company
information and is the first point of contract for automatic email
notifications, discussed below; a company primary contact, who is
able to receive email notifications; company auditor, who is able
to view an audit trail of changes or edits to company information
and user information; a company user manager, who is able to edit
other users' information within their same company and lock/unlock
users from accessing the contract administration program; and a
project creator, who is able to create projects.
[0099] Only one party to the contract, typically the general
contractor, should have a project creator in order to avoid
duplicative efforts for one project. Also in an embodiment of the
invention, the project user permissions include the following: a
project manager, who is able to edit project information, including
users, and is the first point of contact for automatic email
notifications; a primary contract, who is able to receive email
notifications of project events; a project auditor, who is able to
view an audit trail of changes or edits to project related
information; a schedule of values editor, who is able to create and
edit the project schedule of values and change orders, e.g., for
the general contractor; an application for payment editor, who is
able to create and edit the project applications for payment; a
schedule of values reviewer, who is able to review and approve or
reject the subcontractors' schedules of values, as well as the
general contractor change orders, and an application for payment
reviewer, who is able to review and approve or reject the
subcontractors' applications for payment.
[0100] In an embodiment of the invention, permissions are assigned
using a drop-down window of employees of the general contractor.
The general contractor selects an employee and then clicks on the
project permission categories assigned to the selected employee.
The process is repeated for each employee associated with the
project. Permission may likewise be removed from employees, for
example, by clicking a remove icon next to the user's information.
The registered subcontractors or other party to the project is
responsible for assigning their respective user permissions.
[0101] At step s316, the general contractor finishes creating the
project by entering the project settings. The project settings
include any administrative items applicable to performance of the
contract. For example, under the project settings, the general
contractor identifies the company that will review and approve the
general contractor's schedule of value, applications for payment
and change orders, e.g., the owner and/or the architect. The
project settings also include the identity of lien waivers that
will need to be executed by the subcontractors, for example, in
order to receive payments for on the project, discussed above. The
execution may require the documents to be signed, as well as
notarized, depending on the requirements. Alternatively, the
execution may simply require electronic acceptance of the listed
terms and conditions of the lien waiver by the subcontractor. The
option of requiring subcontractors to submit lien waivers, as well
as acceptable execution methods, may be presented, for example, by
providing a check box on the web page. It is understood, though,
that the lien waivers may be identified or changed at any time
during the course of the project.
[0102] For example, to add a lien wavier, the general contractor
selects the project from the initial web page, such as a Welcome or
Main page, and selects the project setting tab. The project setting
page will include a lien waiver tab, which, when selected, lists
the lien waivers that were previously uploaded and stored in the
database 53, for example, in list 1422 of FIG. 14. In an
embodiment, the general contractor may simply place checks or other
indications next to the specific lien waiver(s) which is to be
included in the project. The general contractor may set up the
project such that different types or forms of lien waivers must be
provided and executed, for example, based on the subcontractor, the
type of work, the status (e.g., non-final or final) of the payment,
the location of the work or subcontractor, etc. In an embodiment,
the lien wavier(s) selected for a particular project are
automatically completed with the project information using data
tags, as discussed above.
[0103] If the general contractor desires a lien waiver, but has not
previously uploaded the lien waiver to the database 53 (or the web
server 52), the general contractor may select another option. For
example, the general contractor may indicate in the project
settings that a lien waiver will be required, and that the
subcontractors will return executed paper lien waivers in due
course. In this case, the contract administration program will
enable tracking of the receipt of the paper lien waiver. For
example, when the paper lien waiver option is selected, the
contract administration program will prompt the general contract
upon receipt of an application for payment (discussed below) as to
whether a properly executed lien waiver has been received from the
corresponding subcontractor and will prevent approval of the
application for payment until the general contractor indicates the
affirmative. Once a lien waiver is received, the contract
administration program will display an indication to that effect
for the general contractor's convenience. Alternatively, the
general contractor may upload a lien waiver at any time to be
associated with the project, as discussed above with respect to
FIG. 13. Also, the general contractor may select the option of
having an electronic copy of a selected lien wavier automatically
sent to a subcontractor once an application for payment is
approved, e.g., by email or through a link from the web server
52.
[0104] Regardless of how the general contractor elects to have lien
waivers provided, executed and returned, the contract
administration program tracks the receipt of appropriate lien
waivers. In various embodiments, the contract administration
program may prevent approval of a current application for a
subsequent (or current) application for payment until the executed
lien waiver has been received
[0105] Of course, the project settings may identify documentation
other than (or in addition to) lien waivers, which must be provided
by subcontractors a prerequisite for approval and payment of
requests for payment. For example, the general contractor may
indicate in the project settings that final payments will not be
approved until an inspection certificate has been provided (in
paper or electronic form) by the requesting subcontractor.
Likewise, the general contract may indicate in the project setting
that require separate evidence of claimed costs, such as payroll
certifications, materials receipts, and the like. Such
documentation may be attached, for example, to schedules of values
and/or applications for payment, as discussed below with respect
FIGS. 15 and 16.
[0106] The project settings may be displayed at the general
contractor web client 103 as a web page sent from the web server
52. In an embodiment of the invention, the project settings enable
the general contractor to determine whether to allow the contract
administration program to automatically number line items created
by the general contractor in an incrementally ascending order,
beginning with the number one. When the general contractor prefers
using its own line item numbers, it does not select automatic line
item numbering. Another exemplary setting is specifying whether the
project includes a variable retainage or a fixed retainage.
Variable retainage enables the general contractor to adjust the
amount of retainage the owner is able to withhold over the course
of the project, typically reducing the retainage nearer completion
of the project.
[0107] After the settings are entered, the web server 52 sends a
web page to the general contractor web client 103 showing
everything input to create the project for verification. In an
embodiment of the invention, the general contractor is allowed to
correct any wrong entries by clicking on a "fix" button, for
example. Otherwise, the user clicks on a "create project" button,
for example, to accept and program into the contract administration
program all of the entered data for the new project. The settings
are accordingly stored by the database 53 in association with the
project.
[0108] Once the project is created, the general contractor is able
to access a project web page listing all of the created projects by
name or other unique identifier. The general contractor is
therefore able to access data on any of its projects by simply
clicking on the appropriate icon, retrieving a project detail web
page corresponding to the selected project.
[0109] At step s212 of FIG. 2, the general contractor adds
subcontractors to an existing project. For example, at the project
detail web page, the general contractor selects a company role
management icon, which causes the web server 52 to display the
company role management web page at the general contractor web
client 103. The company role management web page displays the
existing companies and associated roles, e.g., architect, owner and
subcontractor, previously entered by the general contractor at step
s312 of FIG. 3. When needed, the general contractor may select a
button for adding a subcontractor, or other company, and is queried
to enter the name and other information relating to the new
subcontractor.
[0110] When a new subcontractor is already in the database 53,
e.g., the subcontractor has been used on another project and was
previously entered into the database 53 when assigning company
roles, the general contract may simply identify the subcontractor
by name or other identification information. In an embodiment of
the invention, the company role management web page includes a
drop-down window of all companies and associated roles in the
database 53, including subcontractors from all projects, so that
the general contractor is able to add a subcontractor to the
present project by selecting the desired subcontractor from the
subcontractor drop-down window. For example, the general contractor
clicks a box next to the desired subcontractor and then associates
the selected subcontractor with the present project. Once the new
subcontractor is selected, and the subcontractor's company
information added to the database 53, if necessary, the general
contractor saves the information in association with the project.
Of course, new subcontractors, as well as other companies
associated with the project, may be added to the project using any
variations of the web screens and/or associated commands retrieved
from the web server 52 without departing from the spirit and scope
of the present invention.
[0111] Similarly, the general contractor is able to deactivate
project participants. For example, the general contractor web
client 103 retrieves the project detail web page from the web
server 52. The general contractor is then able to select the
company role management icon, which displays all of the contract
participants, including the subcontractors associated with the
project. In an embodiment of the invention, each subcontractor is
listed with corresponding "view" and "deactivate" buttons, for
example. Clicking on the view button causes the web server 52 to
display a web page containing all of the company information
relating to the corresponding subcontractor. Clicking on the
deactivate button causes the corresponding subcontractor to be
removed from the project, although any previous schedule of values,
applications for payment and/or change order information is
retained in the project history of the database 53. In an
embodiment of the invention, once a subcontractor's schedule of
values has been approved, it can no longer be simply removed from
the project, and must be deactivated, as described above.
[0112] At step s214, the general contractor creates the original
schedule of values for the project. In an exemplary embodiment, the
general contractor retrieves the project detail web page from the
web server 52 at the general contractor web client 103. The general
contractor then selects an indication of creating a schedule of
values for the project, such as a button labeled "create SOV."
Initially, a web page is displayed requesting general information
regarding the contact, including percentages of retainage for
stored materials and completed work, the maximum retainage limit
and the number of lines needed for the general contractor's
original schedule of values. The retainage amounts are negotiated
and agreed upon by the owner and the general contractor pursuant to
the general contract. The percentage of retainage for stored
materials and completed work, as well as the maximum retainage
limit are entered by the general contractor at step s412 of FIG. 4,
which is a flow diagram of creating the general contractor's
schedule of values.
[0113] The general contractor clicks a "create" button, for
example, in response to which the web client 103 displays a general
contactor schedule of work web page received from the web sever 52.
FIG. 5 provides an example of the general contractor's schedule of
values web page 500, according to an embodiment of the present
invention. The web page 500 includes basic contract information,
such as the name of the project 501, the start date 502, the
general contactor's name and address 503 and the owner's name and
address 504. The web page also displays the retainage information
505 entered by the general contractor at step s412. In the
exemplary embodiment, the stored material retainage is five
percent, the completion of work retainage is five percent and the
maximum retainage limit is $20,000. In other words, for each
application for payment submitted by the general contractor during
performance of the project, the owner respectively retains five
percent of each value submitted for stored materials and completed
work, up to a total of $20,000 over the life of the contract. The
retainage is released upon completion of the project and acceptance
of the work by the architect and/or owner.
[0114] Below the contract information are rows of blank fields
corresponding to line items, the number of which was previously
identified by the general contractor, as described above. In the
exemplary embodiment shown in FIG. 5, each line item includes four
columns of information: item number 508, description of work 509,
scheduled value 510 and index 511. At step s414 of FIG. 4, the
general contractor enters the item number 508, which is a free form
field that accepts any combination of alpha or numeric characters
corresponding to the particular line item. Alternatively, the
general contactor may select automatic numbering, in which case
each item number 508 is filled automatically with incremental,
ascending numbers.
[0115] The contractor enters the description of work 509 at step
s416, which is a free form field that accepts any combination of
alpha or numeric characters descriptive of the line item. Examples
of entries for description of work 509 include "carpeting--labor,"
"carpeting--materials," "drywall--labor," "drywall--materials,"
"HVAC--labor," "HVAC---materials," "plumbing--labor,"
"plumbing--materials," and the like. The contractor may also
identify and/or include any documentation required in support of
the line item, as discussed above. For example, the schedule of
values may logically attach an inspection form that is required to
be completed by the appropriate subcontractor when the work is
completed. The documentation may be electronic or scanned, and may
be previously stored in the database 53, in association with the
project and/or the contractor, at the time the project was created.
Alternatively, the documentation may be locally stored, e.g., on
the web client 103, and uploaded by the general contractor to be
attached to the schedule of value. The subcontractor(s) associated
with the line item will complete the documentation, or
electronically indicate agreement with the terms of the
documentation, and return it with a subsequent application for
payment, discussed below.
[0116] For example, FIG. 15 is a flowchart showing the process of
uploading a document to be included in a schedule of values (and/or
in an application for payment, as discussed below), according to an
illustrative embodiment of the invention. At step s1512, after the
schedule of values has been created and stored, the general
contractor selects a Documents tab to retrieve a document uploading
web page at the web client 103 via the web server 52 at step s1512.
FIG. 16 is an exemplary web page 1600 for uploading documentation
to a schedule of values, to an aspect of the present invention,
which may be displayed at step s1512.
[0117] At step s1514, an "upload document" button (not shown) may
be selected, which causes window 1620 to open. Window 1620 includes
a "document type" field 1622, a "browse" button 1623 and an
"upload" button 1624. At step s1516, the type of document to be
uploaded is entered in "document type" field 1622. In an
embodiment, the "document type" field 1622 may include a drop down
menu, for example, activated by clicking on a down arrow, which
provides a predetermined list of document types. The general
contractor may scroll through various types (e.g., invoice,
certificate of insurance, surety bond, time card, certified
payroll, other), and select the most appropriate description. Of
course, although not specifically shown in FIG. 16, a lien waiver
(not having data tags) may be listed and selected in the same
manner.
[0118] At step s1518, the general contractor may browse files for
the desired document by clicking the "browse" button 1623. The
"browse" button 1623 provides a drop down list of files available
on the local computer (i.e., the web client 103). However, it is
understood that any other storage media accessible by the web
client 103, such as external or networked storage devices, web
sites, databases, and the like, may be browsed at step s1318 to
obtain the desired document. For example, if an insurance
certificate has been previously stored in the database 53, the
insurance certificate may be obtained by browsing the database 53.
In an embodiment, the general contractor may add notes relating to
the selected document at step s1520.
[0119] At step s1522, the document is highlighted or otherwise
selected, and the selected document and accompanying notes (if any)
are uploaded by selection of the "upload" button 1624. The screen
will refresh the uploaded document will appear on a list of
documents attached to the schedule of values. The "upload document"
button may be clicked again to begin the process of uploading
additional documents, or the uploading process may be ended, e.g.,
by clicking a "finish" button, the project name or some other
indication of completion, at step s1524. Substantially the same
process may be followed to attach a document to an application for
payment.
[0120] A certificate of insurance is a special case document that
can be uploaded by any company and assigned an expiration date by
the company. The certificate of insurance is stored at the company
or participant level and is not necessarily specific to a schedule
of values or applications for payment. In an embodiment, thirty
days prior to the expiration date of the certificate of insurance,
the company that uploaded the certificate of insurance will receive
an electronic notification, such as a pop-up alert at a
corresponding web client upon the creation of an application for
payment, providing notice of the pending expiration. Likewise,
participants contracting with a company having a certificate of
insurance within (or beyond) the 30 day period prior to expiration
will receive an electronic notification, such as a pop-up alert, on
corresponding applications for payment, notifying them that the
submitting company's certification of insurance is due to expire,
or has expired.
[0121] At step s418, the general contractor enters the scheduled
value 510 corresponding to the description of work. The scheduled
value 510 is a numeric field that accepts a dollar amount scheduled
for the particular line item. The format is entered, for example,
as xxxxxxx.xx, which is interpreted by the program as
$x,xxx,xxx.xx.
[0122] In an alternative embodiment, the general contractor may
select a "unit pricing" box (not shown) in order to calculate the
scheduled value. Unit pricing provides the project participants the
ability to bill based on the number of units that are completed to
date, as opposed to billing based on a percentage of completion. A
unit is a defined measurement, such as square feet, yards, cubic
yards, bricks or any other unit of measure the participants agree
adequately represent the progress of the project. When using unit
pricing, each unit is set on a per line item basis, providing the
ability to have multiple units of measure included in any given
schedule of vales (or corresponding applications for payment and
change orders).
[0123] FIG. 17 is an exemplary web page for creating a schedule of
values, according to an aspect of the present invention using unit
pricing. As shown, when using of unit pricing, the contract
administration program may add up to three additional columns on
the web page 550. The columns include number of units 551, cost per
unit 552 (e.g., in dollars per unit) and description of unit 553
(e.g., unit of measure).
[0124] FIG. 18 is a flowchart depicting an exemplary process by
which the general contractor creates a schedule of values, using
unit pricing, according to an aspect of the present invention.
Although FIGS. 17 and 18 are described with reference to creating a
general contractor schedule of values, it is understood that the
discussion applies equally to creating of subcontractor schedules
of value.
[0125] At step s1812, the general contractor selects unit pricing,
for example, by clicking a "unit pricing" box (not shown) on the
create schedule of values web page, from the web client 103. In
response, the web server 52 causes a web page for unit pricing,
e.g., as shown in FIG. 17, to be displayed at the web client 103.
The general contractor then enters the item number and associated
general description in columns 508 and 509 as discussed above, at
step s1814. In addition, the general contractor enters the number
of units for the line item in column 551 at step s1816, the cost
per unit in column 552 at step s1818 and the description of the
unit (e.g., square feet, cubic yard, etc.) in column 553 at step
s1820. The descriptions of the units may be different for the
different line items. In an embodiment, the contact administration
program then automatically calculates the schedule value at step
s1822, which is entered in column 510 for the particular line item,
by multiplying the values in columns 551 and 552. Once all line
items have been completed, the schedule of values is saved, e.g.,
in the database 53, at step s1824.
[0126] In alternative embodiments, the schedule of values may have
combined unit pricing and percentage pricing, depending on the item
number and associated work. For example, the schedule of values web
page 550 may be used, and when unit pricing is not desired for a
particular line item, columns 551-553 may simply be left blank, and
the scheduled value may be manually entered in column 510, as
discussed above with respect to step s418 of FIG. 4.
[0127] Referring back to FIG. 5, the index number 511, entered at
step s420, is simply an incremental, numerical index of each line
item, provided automatically in an embodiment of the invention. The
index number 511 enables quick and efficient indexing of the
various line items, without reference to the item numbers 508. For
example, the item numbers 508 are typically coded by specialty,
such as 300+ for finishing work, 400+ for HVAC work, 600+ for
electrical work and 700+ for plumbing work. The incremental index
numbers 511, however, identify each line item incrementally as it
appears in the list of line items with no consideration of the
specialty.
[0128] At step s422, the general contractor determines whether to
edit the schedule of values. For example, the web page 500 depicts
a fifth column, remove 512, which enables the general contractor to
remove the corresponding line item by marking the box and clicking
the "remove items" button 520 at step s424. New line items may also
be added to the end of the list by entering the number of line
items to be added in box 521 and clicking the "add items" button
522. To insert line items between existing line items, the general
contractor enters the number of line items to be inserted in box
523, identifies the index number of the line item after which the
new line items are to be inserted via box 524 and clicks the
"insert items" button 525, for example. When the general contractor
clicks on the cancel button 531, all of the entries are
deleted.
[0129] After all of the line items for the general contractor's
original schedule of values have been entered, the general
contactor clicks on the create button 530. The result is a
completed schedule of values, an example of which is shown in web
page 600 of FIG. 6. The contract administration program at the web
server 52 calculates the contract sum at step s430 by adding each
entry in the scheduled value 510 column of FIG. 5 and displays the
result as the contract sum 610 in web page 600.
[0130] At step s432, the general contractor submits the original
schedule of values to the owner over the Internet 50, for example,
by selecting the submit button 612 on the web page 600. For
example, the schedule of values is stored in the database 53 and
subsequently accessed by the web server 52 for display at the
owner/architect web client 102. A box for comments 614 may also be
provided on the web page 600, enabling the general contractor to
elaborate on any line items requiring further explanation. In
addition, supporting documentation may be included with the
schedule of values submitted to the owner/architect, such as
insurance certificates, licenses, work permits, etc. For example,
the supporting documentation may consist of attachments to the web
page 600, which may be indicated by a pop-up message, links to
other web pages or databases, and the like.
[0131] In an embodiment of the invention, the web server 52
generates an email, including the comments, and sends the email
over the Internet 50 to the owner/architect web client 102 to
notify the owner and/or architect that the schedule of values has
been submitted and to seek approval of the comments. In an
embodiment of the invention, the email received by the owner and/or
architect includes the URL of the web server 52 in a link, so that
they may access the web server 52, and the contract administration
program, by simply opening the link in the email. The owner and/or
architect may then review the general contractor's schedule of
values. In this embodiment, the support documentation may also be
included as attachments to the e-mail, automatically generated
and/or sent to the owner/architect. Again, receipt of an email
contain supporting documentation may be indicated by a pop-up
message on a web page (e.g., web page 600).
[0132] Once the schedule of values has been submitted for approval,
the general contractor cannot make changes pending approval. This
includes not being able to add or remove subcontractors. Once the
schedule of values is approved the general contractor may add or
remove subcontractors as discussed above, or seek to change the
schedule of values itself by submission of change orders, discussed
below.
[0133] In the depicted embodiment of the invention, the general
contractor may elect to store the completed schedule of values as a
template at step s434. For example, when the schedule of values is
similar to that of other projects or anticipated projects, saving
the schedule of values as a template saves time and effort in the
other projects. At step s436, after submitting the schedule of
values to the owner and/or architect, the general contractor may
enter a template name in a field provided on the redisplayed web
page. The template name describes the type of project for which the
template is useful, for example, school construction, hospital
construction, or the like. The general contractor then saves the
template at step s436 to instruct the web server 52 to save the
schedule of values, e.g., in the database 53, as a template for
future reference. In this embodiment of the invention, the initial
general contactor schedule of work web page 500 may include a
button labeled "choose template" (not pictured), which enables the
general contractor to select a previously stored template, e.g.,
from a drop-down window, and customize the selected template as
necessary for the schedule of values on the new project.
[0134] In an embodiment of the invention, the general contractor
(as well as the subcontractors) may create a template prior to
creating a schedule of values for a particular project. The line
items for the template are created and edited in essentially the
same manner as described above with respect to creating a schedule
of values. Accordingly, the general contractor can build subsequent
schedules of values relating to various projects based on the
stored template.
[0135] Regardless of whether the schedule of values is saved as a
template, the process returns to FIG. 2, with respect to approval
of the schedule of values. The owner and/or architect review the
schedule of values, submitted via the Internet 50. In an embodiment
of the invention, the owner and/or architect accesses the web
server 52 from the owner/architect web client 102 over the Internet
50 upon receiving notice by email that the schedule of values has
been submitted. When the owner and/or architect approves the
schedule of values, the owner and/or architect clicks on an approve
button, for example, displayed along with the submitted schedule of
values on a web page at the web client 102. The general contactor
receives notice of the approval at step s216. In an embodiment of
the invention, the general contractor receives notice of approval
by email, generated by the contract administration program, via the
Internet 50. When the owner and/or architect reject the schedule of
values, a notice to that effect is sent to the general contractor.
No applications for payment or change orders may be submitted until
an approval for the schedule of values is received.
[0136] At step s218, the general contractor receives the schedules
of values from the various subcontractors assigned to the project.
Using the web client 103, the general contractor accesses the web
server 52 and retrieves the project detail web page. The general
contractor clicks on a box labeled "view submitted schedule of
values," for example. The web client 103 displays an overview web
page of the submitted schedules of values received from the web
server 52. The web page lists all of the subcontractors that have
submitted a schedule of values, along with the status of each
schedule of values, e.g., submitted, viewed, approved or rejected.
The overview may also include a subcontract sum, which is the total
amount of the submitted subcontract based on the schedule of
values.
[0137] With respect to the status, "submitted" indicates that the
subcontractor has submitted its schedule of values over the
Internet 50 to the web server 52, so it is available for the
general contractor's review, but the general contractor has not yet
looked at the submission. "Viewed" indicates that the general
contractor has accessed the web server 52, retrieved the submitted
schedule of values for viewing at least once, but has not yet
decided to approve or reject the submission. "Approved" indicates
that the general contractor has reviewed and approved the
corresponding subcontractor's submission. In an embodiment, once
the general contractor approves a schedule of values, the state
cannot be changed, so any corrections would need to be made by a
change order. Therefore, it is to the general contractor's benefit
to associate the line items from the subcontractor's schedule of
values with the line items from the general contractor's schedule
of values, discussed below with respect to step s222, prior to
approving the schedule of values to assure that any inconsistencies
are addressed prior to final approval. "Rejected" indicates that
the subcontractor's submission is unacceptable. If the general
contractor had previously associated any line items from the
subcontractor's ultimately rejected schedule of values with the
line items from the general contractor's schedule of values, these
lines are automatically disassociated upon rejection.
[0138] The overview web page of the submitted schedules of values
may also identify the subcontracted representative who submitted
and the general contractor representative who reviewed each of the
schedules of values. In an embodiment, when the subcontractor is
represented by a proxy company, the overview web page indicates the
representative of the general contractor who entered and submitted
the schedule of values for the proxy company on behalf of the
subcontractor. Accordingly, a schedule of values may be submitted
and approved by the same person. As discussed above with respect to
step s312 of FIG. 3, the general contractor's representative is
previously assigned a role within the general contractor having
authority to approve subcontractor schedules of values, e.g., the
SOV reviewer.
[0139] In response to the general contractor's request to review a
selected schedule of values, the web server 52 sends the selected
schedule of values, previously submitted by the associated
subcontractor (and stored in the database 53) to the web client
103. In an embodiment of the invention, the subcontractor's
schedule of values is prepared and submitted in the same general
manner as the general contractor's schedule of values, discussed
above with respect to FIGS. 4 and 5. Of course, there are
differences in the line items because the subcontractors limit
their respective schedules of values to their subcontract
specialties. Also, the subcontractors provide significantly more
detail for the performance of the work under the subcontracts,
requiring the general contractor to associate line items from each
subcontractor's schedule of values with the appropriate line items
from the general contractor's schedule of values, as discussed
below with respect to step s222. Of course, the subcontractors'
respective support documentation may be included with the
corresponding subcontractor schedule of values submitted to the
general contractor, which may likewise include insurance
certificates, licenses, work permits, etc., as discussed above.
[0140] Upon review, the general contractor may accept or reject the
submitted schedule of values, e.g., by clicking on respective
indications, or simply exit the subcontractor schedule of values
web page. In an embodiment of the invention, the subcontractor is
notified by email of whatever action the general contractor takes
through the Internet 50. For example, the subcontractor may receive
an email at the subcontractor web client 104 stating that "your
schedule of values has been approved," "your schedule of values has
been rejected," or "your schedule of values has been viewed."
Further, the subcontractor is able to access the program to check
the status of the approval, which information is available from the
web server 52 over the Internet 50 at any time. The general
contractor is also able to include comments regarding the
subcontractor's schedule of values, which likewise may be included
in the status email sent to the web client 104.
[0141] In an embodiment, once a subcontractor's schedule of values
is approved, an interface may be established between the general
contractor's web client 103 and any of the general contractor's
relevant systems of record, as discussed below. For example, as
shown in FIG. 21, the general contractor may have a system of
record, such as accounting system 113, which can be automatically
updated based on various entries of the subcontractor's schedule of
values via integrator 114, as discussed below.
[0142] At step s222 of FIG. 2, the general contractor associates
the line items of the subcontractor's schedule of values with the
line items of the general contractor's schedule of values.
Association with the general contractor's line items is necessary
so that the contract administration program is able to
automatically determine payment amounts in applications for
payment, for example, based on a contract administration algorithm,
discussed below. From the general contractor's schedule of values
web page, the general contractor views the line items and
associated values of the schedule of values submitted to the
owner/architect. In an embodiment of the invention, the general
contractor then opens an unassociated items window, within the
schedule of values web page, which displays all line items from all
subcontractor schedules of values that have been submitted for the
project that have not yet been associated with general contractor
line items.
[0143] As shown in FIG. 7, an unassociated items window 710 can be
opened, resized and dragged anywhere on the general contractor
schedule of values web page 700, enabling the general contractor to
directly compare the various subcontractor line items with the
general contractor line items without have to open and close the
associated web pages. In an embodiment of the invention, a
subcontractor line item is associated with a general contractor
line item by clicking on the subcontractor line item, holding down
on the left mouse button and dragging the item to a folder icon
720, for example, associated with the desired general contractor
line item. The association is completed by releasing the mouse
button. Alternative embodiments incorporate any method of
efficiently associating the two sets of line items without
departing from the spirit and scope of the present invention. The
associated subcontractor and general contractor line items are
stored in the database 53 at step s224, for example, by clicking on
a "save" button 730 on the web page 700.
[0144] In the depicted exemplary embodiment, a +icon 721 or other
positive indicator appears in order to indicate successful
association of the subcontractor line item with the general
contractor-line item. Clicking on the +icon opens an associated
line items window 722 corresponding to the general contractor line
item. Each of the associated line items in the open associated line
items window 722 has a corresponding folder 724. To remove an
association, the general contractor clicks on the folder 724, holds
down the left mouse button and drags the folder (and/or line item)
back to the window of unassociated line items 710. Releasing the
mouse button completes the removal. The process is repeated until
all of the line items of the subcontractor schedules of values,
which the general contractor wishes to incorporate into its
schedule of values, are associated with the general contractor's
line items.
[0145] Once the schedules of values are created, associated and
approved, the subcontractors may submit change order requests to
the general contractor, and the general contractor may submit
change order requests to the owner/architect, over the Internet 50
to the web server 52. Change order requests seek alterations to the
respective submitted and approved schedules of values to reflect a
change in performance of work on a contract. Typically, change
order requests seek compensation for additional work performed,
materials procured or other unanticipated expenses. However, change
orders may also request a reduction in compensation based on work
or materials that is determined to be unnecessary in the course of
the project.
[0146] A subcontractor builds a change order by first retrieving a
list of current change orders from the web server 52, to be
displayed at the subcontractor web client 104 or 105, for example.
The new change order may be included in an existing change order
that has not yet been approved, or provided as a separate change
order. Also, unapproved change orders may be edited or deleted at
any time.
[0147] To create a change order, the subcontractor enters data
identifying the item number of the subcontractor's schedule of
values, with which the change order is associated. However, the
change order may also identify a new item number to the extent it
involves work that is not readily associated with the existing
subcontractor line items. The subcontractor also enters a
description of the additional work, e.g., "additional building pad
work," and the scheduled value of the change order, e.g.,
$3,000.00. The change orders are numbered incrementally. As in the
case of the schedules of values, the contract administration
program enables the subcontractor to enter comments about the
change order to be submitted along with the change order. The
subcontractor clicks on a "submit to owner" button, for example, to
send the change order to the web server 52, which stores the change
order in the database 53 and generates an email to the general
contractor at the web client 103 informing of the submitted change
order.
[0148] The general contractor, in turn, incorporates the
subcontractor change order into a general contractor change order
and submits the general contractor change order to the
owner/architect in the same manner described above. In an
embodiment, the general contractor may incorporate more than one
subcontractor change order into a general contractor change order,
in which case the general contractor change order includes a list
of the associated subcontractor change orders.
[0149] The general contractor reviews and approves or rejects the
subcontractors' change orders in much the same manner it reviews
and approves or rejects the subcontractors' schedules of values.
For example, the general contractor associates the line items of a
subcontractor's change order with the line items of the general
contractor's schedule of values. The general contractor submits the
change order, sending it to the web server 52. The web server 52
stores the change order in the database 53 and generates an email
to the owner/architect at the web client 102 informing of the
submitted change order.
[0150] The owner/architect reviews the change order and determines
whether to accept or reject it. Data indicating the decision is
stored in the database 53 and sent by email to the general
contractor at the web client 103. When the general contractor
receives notice of approval, the general contractor approves the
corresponding subcontractor's change order. Likewise, data
indicating the approval is stored in the database 53 and sent by
email to the appropriate subcontractor at the web client 104 or
105.
[0151] Once the original schedules of values are created,
associated and approved, the general contractor and subcontractors
are able to begin submitting applications for payment over the
Internet 50 to the web server 52. Of course, the original schedule
of values is updated throughout the course of project performance
based on approved change orders, described above. Typically, the
general contractor does not submit an application for payment until
it has received a number of applications for payment from the
subcontractors. The application for payment format may be an
industry standard format or government required format.
Accordingly, the subcontractors' applications for payment are
addressed first.
[0152] Referring to FIG. 8, a subcontractor cannot submit an
application for payment until it has received approval of its
schedule of values from the general contractor at step s810. As
stated above, the subcontractor automatically receives notice that
its schedule of values has been approved by email over the Internet
50. Also, the subcontractor may access the contract administration
program at the web server 52 from the web client 104 or 105 at any
time to check the status of the approval.
[0153] Once approval is received and work on the project commences,
the subcontractor periodically creates applications for payment.
The timing of the applications for payment are generally governed
by the subcontract and may include, for example, submitting an
application weekly, monthly or upon completion of predetermined
project milestones. The subcontractor accesses the web server 52
from the web client 104 or 105 and retrieves a web page at step
s812 designed to elicit information regarding the status of the
work performed on the project, an example of which is web page 900
of FIG. 9.
[0154] The initial application for payment is based on the approved
schedule of values. Therefore, before entering any amount to be
billed under the subcontract, the application for payment must be
edited to include any change orders sought by the subcontractor. At
step s814, the subcontractor determines whether any change orders
have been submitted to the general contractor since work began.
When change orders have been submitted, and approved, the
subcontractor decides which, if any, change orders to include in
the present application for payment at step s816. Any change orders
not included may be submitted in subsequent applications for
payment. The line items corresponding to the change orders are
automatically updated to reflect the subject matter of the change
orders at step s818.
[0155] After the line items are updated, or when no approved change
orders exist, the subcontractor begins building the application for
payment. Referring to the web page 900, the subcontractor enters
basic information at step s819 to track the application, including,
for example, the application number 901, the application date 902
and the time period 903 covered by the application. In an
embodiment of the invention, these fields are completed
automatically by the contract administration program, along with
the identification of the subcontractor submitting the application,
the name of the project, the contracting parties and the like.
[0156] At step s820, the subcontractor enters the work completed
and the material stored. The subcontractor uses the fields provided
on the web page 900 to accurately track the progress of the
subcontract performance. For example, columns A, B and C are the
item number 910, the description of work 911 and the scheduled
value 912, which respectively match the line item numbers,
descriptions of work and scheduled values assigned by the
subcontractor in its schedule of values (and modified by any
approved change orders selected by the subcontractor in step
s816).
[0157] Columns D and E show the work completed 913 by the
subcontractor during the period covered by the application for
payment. The work completed 913 is divided into work
completed--from previous application 915 and from this period 916.
Because the exemplary application for payment is the initial
application for payment, the work completed from previous
application 915 is all zeros. The work completed--this period 916
shows the amount of work performed in dollars. For example, for
line item 1001 (CMU foundations--materials), $800 has been expended
of the $8,000 allocated for that line item, and for line item 1002
(CMU foundations--labor), $1,000 has been expended of the $10,000
allocated.
[0158] When the schedule of values has been provided in unit
pricing format, as discussed above, the work completed must be
expressed in appropriate units to be submitted. For example, the
work completed 913 may be further divided into number of units
completed, the cost per unit and the description of the unit (not
shown). The contract administration program may then calculate the
work completed, from the previous application 915 and from this
period 916, by automatically multiplying the number of units and
the cost per unit, for submission to the general contractor. As
discussed above, the application for payment reflects the
corresponding schedule of values, so any schedule of values line
items that do not include unit pricing will likewise not include
unit pricing in the application for payment.
[0159] Column F of the web page 900 shows the materials presently
stored 917. This column contains the dollar amount of materials
purchased by the subcontractor and stored, e.g., on site, but not
yet incorporated into the project. In the present example, none of
the line items include an amount for materials stored. The
subcontractor indicates when it finishes entering the work
completed and the materials stored, for example, by clicking a
"re-calculate fields" button on the web page 900 (not
pictured).
[0160] At step s824, the contract administration program calculates
the remaining entries of the web page 900. For example, column G
shows the total dollar amount associated with each line item,
including the total work completed 913 (i.e., the sum of the work
completed--from previous application 915 and the work
completed--this period 916) and the materials presently stored 917
for each line item. Column G also includes the percentage 919,
showing the percentage of completion based on a comparison of the
total completed and stored to data 918 with the scheduled value
912. For line items 1001 and 1002, 10 percent of the scheduled
value is included in this application for payment. Column H,
balance to finish 920, shows the remaining amount of the scheduled
value to be performed by the subcontractor for each line item.
[0161] In the row showing grand totals 930, the totals for each
line item are automatically determined for each of the columns. One
exception is the column for percentage 919, which does not show the
total percentages. Rather, the percentage 919 for the grand total
930 shows the percentage of the total work completed 918 to the
total scheduled value 912.
[0162] In an embodiment, the information relating to the completed
work by the subcontractor is provided to the general contractor's
system of record, such as accounting system 113, via the integrator
114 of FIG. 21. The integrator 114 enables the accounting system
113 to automatically update the user's internal accounting records
to reflect the progress, indicated by applications for payment, as
discussed below.
[0163] In an embodiment of the invention, the subcontractor
indicates whether the general contractor is allowed to make
modifications to the application for payment by clicking on the
YES/NO radio buttons 931. By agreeing to allow the general
contractor to make modifications, the subcontractor may expedite
approval of the application for payment, as well as the subsequent
general contractor application for payment, in which the
subcontractor's application is included. The subcontractor can also
enter explanations of charges, give status reports or the like in
the comments window 932.
[0164] The subcontractor submits the application for payment to the
general contractor at step s826, for example, by clicking on the
"submit to owner" button 933. The application for payment is stored
at the database 53 by the web server 52 for the general contractor
to review. As with the schedules of values, the web server 52 also
generates and sends an email to the general contractor at the web
client 103 to inform the general contractor that a new application
for payment has been submitted.
[0165] Also, any supporting documentation required by the general
contractor may be submitted electronically at this time. The
subcontractor may identify and/or include the documentation in
support of one or more line items by uploading documents in
substantially the same manner as discussed above with respect to
FIGS. 15 and 16. Referring to FIG. 15, in particular, the depicted
process begins with saving the subcontractor's application for
payment to which the document is to be attached, and proceeds in
substantially the same manner with respect to obtaining and
uploading the documents. Accordingly, explanation of the process
will not be repeated.
[0166] With respect to the uploaded documents, the general
contractor may require, for example, an insurance certificate, an
inspection sign-off or other documentation from the subcontractor
before payment can be approved or made. The receipt of these
documents is tracked, either automatically or in response to
prompts by the contract administration program. Accordingly, the
general contractor and/or the subcontractor is notified of any such
outstanding requirements with respect to the application for
payment whenever the subcontractor attempts to submit the current
application for payment.
[0167] As discussed above, supporting documentation may consist of
attachments to an email, attachments to a web page, such as the web
page 900, which may be indicated by a pop-up message, links to
other web pages or databases, and the like. For example, an
insurance certificate or a scanned copy of a lien waiver that has
been associated with the project and/or the subcontractor may be
attached, e.g., as a PDF file, to an email approving the
subcontractor's application for payment. Documents that need to be
executed may be digitally signed and sent in a return email, or
printed out, signed and returned as a scanned attachment to an
email or by regular mail. Digitally signed and returned documents
may be automatically updated on the web server 52. Otherwise, an
associated indicator is manually updated by the general contractor,
e.g., based on reminders or pop-ups provided by the contract
administration program. As stated above, the general contractor
will not be able to approve an application for payment if
previously required documents have not been received. It is
understood that any type of electronic delivery and/or execution of
documents may be incorporated into the application for payment
approval process without departing from the spirit and scope of the
present invention.
[0168] In an embodiment of the invention, the subcontractor's
application for payment cannot be approved unless all of the
previous applications for payment have been approved. Also, as
stated above with respect to schedules of value, once an
application for payment has been approved or rejected, its state
cannot be changed, so the general contractor should not approve the
subcontractor applications for payment until after it receives
approval for the general contractor application for payment in
which the subcontractor applications are incorporated. Once an
application for payment has been rejected, all subsequent
applications for payment from the same subcontractor are also
rejected. Similar to the subcontractor schedules of values, the
applications for payment submitted to the general contractor have
one of four statuses: submitted, viewed, approved and rejected. In
an embodiment of the invention, the subcontractor receives an email
from the web server 52 whenever the general contractor views,
approves and/or rejects each submission.
[0169] The general contractor's application for payment to the
owner/architect is similar to that of the subcontractor's
application for payment to the general contractor. Initially, the
general contractor receives an approval of its schedule of values
from the owner/architect at step s1010 of FIG. 10. Typically, the
general contractor receives the notice at the web client 103 from
the web server 52 as an email.
[0170] The general contractor determines to submit an application
for payment, based on project completion milestones, agreed monthly
or weekly submissions, target dates or the like, as indicated in
the general contract. The general contractor logs onto the contract
administration program at the web server 52 and selects application
for payment for the desired project from a project detail web page.
At step s1012, the web client 103 retrieves the application for
payment form web page from the web server 52 over the Internet 50.
An exemplary application for payment web page is depicted as web
page 1100 in FIG. 11.
[0171] At step s1014, the general contractor determines whether any
subcontractor applications for payment have been newly submitted or
have not yet been included in a previous general contractor
application for payment. If so, the general contractor retrieves a
list of subcontractor applications at step s1016 and selects the
applications that are to be included in the general contractor's
application for payment at step s1018. The general contractor also
has self-performed tasks, included in the schedule of values and an
application for payment, that do not involve performance of work by
a subcontractor.
[0172] At step s1020, the general contractor determines whether any
change orders have been newly submitted or have not yet been
included in a previous application for payment. When there are
change orders, the general contractor assures that it has received
approval of the change orders from the owner/architect at step
s1022, discussed above. The general contractor then selects the
change orders, if any, to include in the application for payment at
step s1024. Any change orders not included may be submitted in
subsequent applications for payment. Also, in an embodiment of the
invention, a subcontractor change order cannot be disassociated
from a general contractor change order once the subcontractor
application for payment that includes the subcontractor change
order has been included and submitted in a general contractor
application for payment. The line items corresponding to the change
orders are automatically updated to reflect the subject matter of
the change orders.
[0173] After the line items are updated, or when no approved change
orders exist, the general contractor begins building the
application for payment. Referring to the web page 1100, the
subcontractor enters basic information at step s1028 to track the
application, including, for example, the application number 1101,
the application date 1102 and the time period 1103 covered by the
application. In an embodiment of the invention, these fields are
completed automatically by the contract administration program,
along with the identification of the name of the general contactor,
the name of the project, the contracting parties and the like.
[0174] At step s1030, the general contractor enters the work
completed and the material stored. The general contractor uses the
fields provided in the web page 1100 to accurately track the
progress of contract performance. For example, columns A, B and C
are the item number 1110, the description of work 1111 and the
scheduled value 1112, which respectively match the line item
numbers, descriptions of work and scheduled values assigned by the
general contractor in its schedule of values (and modified by any
approved change orders selected by the general contractor in step
s1024).
[0175] When the schedule of values has been provided in unit
pricing format, as discussed above, the work completed must be
expressed in appropriate units to be submitted. For example, the
work completed 1113 may be further divided into number of units
completed, the cost per unit and the description of the unit (not
shown). The contract administration program may then calculate the
work completed, from the previous application 1115 and from this
period 1116, by automatically multiplying the number of units and
the cost per unit, for submission to the owner/architect. As
discussed above, the application for payment reflects the
corresponding schedule of values, so any schedule of values line
items that do not include unit pricing will likewise not include
unit pricing in the application for payment.
[0176] Columns D and E shown the work completed 1113 on the project
during the period covered by the application for payment. The work
completed 1113 is divided into work completed--from previous
application 1115 and from this period 1116. Assuming the exemplary
application for payment is the initial application for payment, the
work completed from previous application 1115 is all zeros. The
work completed--this period 1116 shows the amount of work performed
in dollars. For example, for line item 103a (clear building pad),
$5,500 has been expended of the $11,000 allocated for that line
item, and for line item 103b (clear remaining site), $6,000 has
been expended of the $6,000 allocated. Column F of the web page
1100 shows the materials presently stored 1117. This column
contains the dollar amount of materials purchased by the
subcontractor and stored, but not yet incorporated into the
project. In the present example, none of the line items include an
amount for materials stored.
[0177] The work completed and the materials stored for each line
item, as well as the general contractor's markup, are entered at
step s1030 of FIG. 10. Also, at step s1034, the amount previously
billed is entered, for example, in column D, from previous
application 1115. Unlike the subcontractor applications of payment,
the general application for payment includes the general
contactor's markup. For example, the $11,000 allocated for line
item 103a includes an exemplary ten percent markup on the
subcontractor's work. In other words, the subcontractor had
scheduled $10,000 for this work and the general contractor added a
$1,000 markup (ten percent) in its corresponding scheduled value.
Likewise, the work completed 1113 for this period 1116 is based on
a $5,000 submission from the subcontractor and a $500 markup by the
general contractor.
[0178] In an embodiment of the invention, the work completed this
period 1116 and the materials presently stored 1117 fields are
automatically populated by the contract administration program at
steps s1030 and s1034 when the general contractor clicks on a
button labeled "auto-populate" (not pictured), for example. The
program then populates these fields based on information stored in
the database 53, such as the general contractor schedule of values,
the subcontractor applications for payment, the associated line
items, the approved change orders and the like.
[0179] The amounts automatically entered, however, are guide values
for the general contractor, who may replace any of the
automatically populated fields with any figure it desires within
the scheduled value amount. For example, the general contractor may
want to front-load payments under the contract by billing the
owner/architect more than amounts billed by the subcontractor.
Whether the general contractor has the right to front-load is
typically covered by the terms and conditions of the general
contract.
[0180] In an embodiment of the invention, the fields are
recalculated for each GC line item according to the following
algorithm:
WC ( LI ) = E ( SC ) C ( SC ) - D ( SC ) .times. C ( GC ) - D ( GC
) ( 1 ) ##EQU00001##
[0181] Where: WC.sub.(LI)=the general contractor line item (from
the schedule of values) for which the work completed payment amount
is being determined; E.sub.SC)=the work completed in the current
period for all subcontractor line items associated with the general
contractor line item; C.sub.(SC)=the original scheduled value for
all subcontractor line items associated with the general contractor
line item; D.sub.(SC)=the work completed as of the previous
application for all subcontractor line items associated with the
general contractor line item; C.sub.(GC)=the original scheduled
value of the general contractor's line item; and D.sub.(GC)=the
work completed as of the previous application for the general
contractor's line item.
[0182] The work completed calculation divides the work completed
for the present period for all associated subcontractor line items
by the work remaining for the same subcontractor line items to
determine a ratio, E.sub.(SC)/(C.sub.(SC)-D.sub.(SC)). The ratio is
multiplied by the remaining work of the general contractor,
C.sub.(GC)-D.sub.(GC), to determine the amount that the general
contractor should use for work completed this period 1113. Using
the remaining work instead of just the original work accommodates
the situation in which the general contractor "front loads" its
applications for payment, i.e., initially billing the owner at a
higher rate than it is actually paying the subcontractor.
[0183] Referring to the example depicted in web page 1100 of FIG.
11, the contract administration program determines the amount of
work completed this period 1113 for Item number 101, based on the
subcontractor application for payment as follows:
E.sub.(SC)=$10,000; C.sub.(SC)=$20,000; D.sub.(SC)=0;
C.sub.(GC)=$22,000; and D.sub.(GC)=0. Note that the subcontractor
figures are based on the general contractor figures, less the
general contractor's 10 percent markup. Also, since the application
for payment of FIG. 11 is an initial application for payment, the
work completed as of the previous application for both the
subcontractor and the general contractor is "0." Accordingly, the
application for payment amount is determined as follows:
AFP.sub.(101)=10,000/20,000.times.22,000=$11,000
[0184] The contact administration program can also determine the
amount of materials stored 1117 included by the general contractor
in its application for payment to the owner/architect for each line
item. In an embodiment of the invention, the field is calculated
for each GC line item according to the following algorithm:
MPS ( LI ) = F ( SC ) C ( SC ) .times. C ( GC ) ( 2 )
##EQU00002##
[0185] Where: MPS.sub.(LI)=the general contractor line item for
which the materials presently stored payment amount is being
determined; F.sub.(SC)=the stored materials for the current period
for all subcontractor line items associated with the general
contractor line item; C.sub.(SC)=the original scheduled value for
all subcontractor line items associated with the general contractor
line item; and C.sub.(GC)=the original scheduled value of the
general contractor's line item.
[0186] The stored materials calculation divides the materials
presently stored for the present period for all associated
subcontractors line items by the original scheduled values for the
same line items. This ratio is then multiplied by the corresponding
original scheduled value of the general contractor to determine the
amount that the general contractor should claim for the materials
presently stored. There is no "remaining" stored materials, as in
the work completed, so factoring a remaining amount is not
applicable to determining the materials presently stored.
[0187] As stated above, following the guide value for each line
item in the general contractor application for payment is
discretionary. The general contractor may accept the automatically
determined amount, or enter a higher or lower amount. For example,
the general contractor may wish to "front load" its applications
for payment, initially billing the owner at a higher rate than it
is actually paying the subcontractor. Regardless, the contract
administration program will apply the algorithms expressed in
equations (1) and (2), above, with respect to subsequent
applications for payment, resulting in guide values that fully
amortize the payment applications to the owner/architect when the
subcontractor(s) has been fully paid, even when the general
contractor ignores the previous guide values, e.g., when it
front-load certain line items.
[0188] FIGS. 12A-12C shown portions of exemplary spread sheets in
which the general contractor elects to front load its applications
for payment, requesting a higher payment in the initial application
for payment than has been submitted for the corresponding line item
by the subcontractor. FIG. 12A shows three line items from a sample
first subcontractor application for payment 1210, indicating in
columns E and F, respectively, that the total work completed on the
subcontract is $7,500 and the total materials presently stored is
$2,500. The sample first general contractor application 1230 shows
the guide values in columns E and F calculated by the contract
administration program in accordance with equations (1) and (2),
respectively. Assuming a 10 percent markup, the guide values are
determined to be $8,250 and $2,750 for the work completed this
period and the materials presently stored.
[0189] FIG. 12B shows the same three line items from a sample
second subcontractor application for payment 1240, indicating in
columns E and F, respectively, that the additional work completed
on the subcontract is $11,000 and the total materials presently
stored is still $2,500. The sample second general contractor
application 1260 again shows the guide value in columns E
calculated by the contract administration program in accordance
with equation (1). (Note that the materials presently stored in
column F is unchanged.) However, as indicated in column D of the
second general contractor application 1260, the general contractor
front loaded its previous application by submitting $12,000, as
opposed to the guide value of $8,250, as the work completed from
the previous application. Therefore, the guide value determined
according to equation (1) in column E is $10,266.67. As a result,
the total completed and stored to date entry is $25,016.67, while
if the guide value had been followed in the first general
contractor application 1230, the total completed and stored to date
entry would have been $23,100.
[0190] FIG. 12C shows the same three line items from a sample third
subcontractor application for payment 1270, indicating in columns E
and F, respectively, that the additional work completed on the
subcontract is $11,500, with no materials presently stored,
resulting in 100 percent completion of the work scheduled for those
three line items, indicated by the percentage in column G. The
sample third general contractor application 1290 again shows the
guide values in column E calculated by the contract administration
program in accordance with equation (1). As indicated in column D,
the general contractor followed the guide value from the previous
application and submitted the total work from previous applications
as $22,266.67. Therefore, the guide value determined according to
equation (1) in column E is $10,733.33, which coincides with the
remaining amount of work to be performed for the general
contractor's line item. Note that the materials presently stored in
column F is zero, indicating that the stored material has been
used. Accordingly, FIGS. 12A-12C demonstrate that the contract
administration program accurately tracks, and recommends
appropriate application for payment values, even in the case where
the general contractor front loads its billing.
[0191] Referring back to FIG. 10, the general contractor indicates
that it has finished entering the work completed and the materials
stored values by clicking a "re-calculate fields" button (not
pictured), for example. At step s1036, the contract administration
program calculates the remaining entries of the web page 1100 based
on the entered values. For example, column G shows the dollar total
amount associated with each line item. Column G includes the total
completed and stored to data 118, which includes the sum of the
work completed--from previous application 1115, the work
completed--this period 1116, and the materials presently stored
1117 for each line item. Column G also includes the percentage
1119, showing the percentage of completion based on a comparison of
the total completed and stored to data 1118 with the scheduled
value 1112. For line item 103a and 103b, 50 percent and 100 percent
of the scheduled values are respectively included in this
application for payment. Column H, balance to finish 1120, shows
the remaining amount of the scheduled value to be performed on each
project line item.
[0192] In the row showing grand totals 1130, the totals for each of
the general contractor's line items are automatically determined
for each of the columns. One exception is the column for percentage
1119, which does not show the total percentages. Rather, the
percentage 1119 for the grand total 1130 shows the percentage of
the total work completed 1118 to the total scheduled value 1112.
The GC can also enter explanations of charges, give status reports
or the like in the Comments window 1132.
[0193] In addition, the retainage may be calculated by the contract
administration program. When the variable retainage is used, the GC
enters an indication of variable retainage, for example, by
checking a variable retainage box (not shown), which provides
flexibility to the GC. As discussed above, work completed may be
entered as a percentage, in which case the corresponding dollar
amount complete is calculated, or as a dollar amount, in which case
the percentage complete is calculated. The amounts for materials
stored are likewise entered. The last column (e.g., column I in
FIGS. 12A-12C), the retainage may be entered on a line item-by-line
item basis when using variable retainage. The amount of retainage
to be held on each line is entered. If no retainage is to be held,
the box is left blank. The amount of retainage may be entered as a
percentage or as a dollar amount. The final bill for variable
retainage will be the cumulative amount of retainage withheld from
each billing. In comparison, using normal retainage, the final
billing for retainage is the total amount retained on the previous
bill. By adding retainage from all bills, the sum will total the
amount billed when the final billing for retainage is created.
[0194] The general contractor submits the application for payment
to the general contractor at step s1040, for example, by clicking
on the "submit to owner" button 1133. The application for payment
is stored at the database 53 by the web server 52 for the owner
and/or architect to review. As with the schedules of values, the
web server 52 also generates and sends an email to the
owner/architect at the web client 102 to inform them that a new
application for payment has been submitted.
[0195] Also, any supporting documentation required by the
owner/architect may be submitted electronically at this time. The
general contractor may identify and/or include the documentation in
support of one or more line items by uploading documents in
substantially the same manner as discussed above with respect to
FIGS. 15 and 16. Referring to FIG. 15, in particular, the depicted
process begins with saving the general contractor's application for
payment to which the document is to be attached, and proceeds in
substantially the same manner with respect to obtaining and
uploading the documents. Accordingly, explanation of the process
will not be repeated.
[0196] As described above with respect to subcontractor
applications for payment, in an embodiment of the invention, the
general contractor's application for payment cannot be approved
unless all of the previous applications for payment have been
approved. Also as stated above, once an application for payment has
been approved or rejected, its state cannot be changed. Once an
application for payment has been rejected, all subsequent
applications for payment from the same subcontractor are also
rejected. Similar to the subcontractor applications for payment,
the general contractor's applications for payment have one of four
statuses: submitted, viewed, approved and rejected.
[0197] The owner/architect reviews the general contractor's
application for payment, as described above with respect to
approval of subcontractor applications for payment. For example,
the owner/architect is notified of the pending application for
payment by email and logs onto the contract administration program
at the web server 52 to retrieve the application. The
owner/architect can approve or reject the application for payment,
an indication of which is stored in the database 53 for retrieval
by the general contractor, as well as emailed to the general
contractor at the web client 103. The owner/architect may include
comments in the approval or rejection email, such as "check will be
mailed on Friday."
[0198] Also as described above with respect to subcontractor
applications for payment, any supporting documentation required by
the owner/architect may be submitted electronically at this time by
the general contractor. For example, the owner/architect may
require lien waivers or inspection sign-offs from the general
contractor and/or subcontractor(s), either before or after an
application is approved or payment is made, depending on the
project requirements. As discussed above, the supporting
documentation may consist of attachments to a web page, such as the
web page 1100, which may be indicated by a pop-up message, links to
other web pages or databases, and the like. The lien waivers or
other documents executed by the subcontractors and stored by the
general contractors, for example, maybe retrieved from the database
53 by the owner/architect, as needed.
[0199] Also, information relating to the submitted request for
payment by the general contractor may be provided to the general
contractor's system of record, such as accounting system 113 via
the integrator 114 of FIG. 21. The accounting system 113
automatically updates the general contractor's internal records to
reflect the request.
[0200] In an embodiment, the owner/architect is able to initiate an
electronic funds transfer at the web server 52, based on bank
account data for the owner/architect and the general contractor
stored in the database 53. Likewise, the general contractor may
have the ability to pay subcontractors over the Internet 50 using
electronic funds transfer.
[0201] The process of receiving and accepting applications for
payment from subcontractors, and sending applications for payment
to the owner/architect, is repeated until work on the contract is
complete. Other standard contract provisions, such as time-tables,
receipt of permits, project inspections, acceptance of the work,
release of retainage amounts and the like, are administered in a
conventional manner. However, notices of inspection times and
dates, release of retainage amounts, as well as other contract
governed events, may be noticed over the Internet 50, e.g., by
email, and posted at the associated project web site, since the
project participants routinely interact with the centralized web
server 52.
[0202] Accordingly, the present invention provides administration
of a contract, and associated subcontracts, from a centralized web
server accessible by all contracting (and subcontracting) parties
over a packet switched data network, such as the Internet.
Schedules of values, applications for payment and change orders
corresponding to the general contractor and the subcontractors are
built and submitted to the owner/architect and the general
contractor, respectively, by way of the web server. Responsive
approvals and rejections are likewise communicated through the web
servers. Furthermore, emails are generated automatically to notify
the contracting and subcontracting parties of the status of various
submissions, as well as other contract and project related
communications.
[0203] An embodiment of the invention further includes a
forecasting tool, which may be used to view differences in actual
costs and/or progress incurred to date versus the corresponding
costs and progress estimated at the beginning of the project. As
with the previously described embodiments, the forecasting tool
will be described from the perspective of the general contractor
for the sake of convenience. However, it is understood that other
project participants, such as the subcontractors and the
owner/architect, may likewise build and/or retrieve forecast data
in order to track the progress of the project. For example,
architects may use the forecasting tool to perform construction
management services. The forecasting tool provides a graph, for
example, which enables relatively quick determination of whether
the project is running over anticipated costs or longer than
anticipated time.
[0204] FIG. 19 is a flowchart showing an implementation of the
forecast tool, according to an illustrative embodiment of the
invention. At step s1912, the general contractor creates a schedule
of values from the web client 103, in essentially the same manner
as discussed above, e.g., with respect to FIG. 4. In an embodiment,
the forecasting must be established before the schedule of values
is submitted for approval. If the schedule of values has already
been submitted, then it must be modified and resubmitted (after
implementation of the forecast tool).
[0205] Once the schedule of values is created, it is saved as step
s1914. The schedule of values is saved, for example, in the
database 53 in association with the general contractor and/or the
project. The general contractor may then select a Cost Forecast tab
of a web page (not shown), such as the schedule of values web page
or the initial web page, at step s1916. In response, the web server
52 causes a cost forecast web page, such as web page 2000 of FIG.
20, to be displayed on the web client 103. The contract estimates
are entered in various fields of a contract estimate box 2010. For
example, at step s1918, the length of the contract is entered in
field 2012, which is 10 months in the depicted example. The web
page 2000 may automatically provide a monthly estimate box 2014 in
response to the entry in field 2012. In this case, the monthly
estimate box 2014 includes 10 rows corresponding to the anticipated
10 month schedule.
[0206] At step s1920, the estimated (or target) dollar amount
and/or percentage of completion are entered in each row of the
monthly estimate box 2014. The total contract value may also be
entered by the general contractor (or obtained from the schedule of
values), so that as estimated dollar amounts are entered, the
contract administration program will automatically indicate an
allocated contract value, which is the total contract value less
the amounts allocated, and an allocated percentage. At step s1922,
the contract administration program plots the estimated monthly
progress on a per month bases, shown as graph line 2024 on cost
forecast chart 2020. In an embodiment, the estimated monthly
progress is plotted substantially simultaneously with the entry of
the monthly values in the monthly estimate box 2014.
[0207] At step s1924, chart is saved, for example, in the database
53, in association with the contractor and/or the project. The
previously saved schedule of values may then be submitted for
approval at step s1926. The chart is then updated periodically,
indicated by step s1928, in response to applications for payment.
For example, the dollar amounts may be plotted as graph line 2022
on the cost forecast chart 2020, based on values and dates
automatically extracted from approved applications for payment. In
the depicted embodiment, the horizontal axis is months and the
vertical axis is whole dollar amount, although it is understood
that different measures of progress may be provided as a forecast
chart, without departing from the spirit and scope of the
invention.
[0208] The cost forecast chart 2020 is saved after each update, and
may be accessible to all project participants. For example, the
general contractor may navigate to the schedule of values web page
from the web client 103, and click on a View tab (not shown), which
may reveal the projects with which the general contractor is
involved. The general contractor may then select the desired
project and click on a Cost Forecast tab (not shown) to view the
cost forecast chart 2020.
[0209] FIG. 21 is a block diagram showing an exemplary network of a
web client interfacing with a customer's system of record,
according to an aspect of the present invention. The network
includes the general contractor web client 103, including the
associated computers systems, connected to a system of record
(113), through an interface or integrator 114 via local area
network (LAN) 120. The system of record may be an accounting system
113, for example, which runs an accounting computer program which
can be automatically updated based on various entries of the
schedules of values and applications for payment. As stated above,
although the illustrative embodiment is described from the
perspective of the general contractor, it is understood that the
description may also apply to other contract or project
participants having corresponding systems of record, such as the
subcontractors and owner/architect.
[0210] The integrator 114 includes software or middleware, which
may be stored on and executed by the web client 103 or which may be
implemented by a separate computing system, to interface between
the contract administration program software (e.g., GCPay software)
and the accounting system 113 software. For example, the accounting
system 113 may be a Timberline.RTM. Office accounting system
provided by Sage Software, Inc., and the integrator 114 may be a
Microsoft Windows based application, for example, that enables data
from the schedules of values and/or applications for payment to be
automatically entered into (or retrieved from) various fields of
the Timberline accounting system. For example, accounts payable
(A/P) and accounts receivable (A/R) may be created by the
accounting system and actual job costs may be reconciled by the
accounting system 113 based on the applicants for payment. In an
illustrative embodiment, the integrator 114 may be implemented as a
GCPay Timberline Integrator.TM., as described in "GCPay Timberline
Integrator.TM." (July 2007), the contents of which are incorporated
herein by reference in their entirety.
[0211] In an illustrative embodiment, the web client 103 runs
Microsoft Windows and Microsoft NET. The Timberline Office
accounting system must include the following modules: contracts,
A/P, A/R, Job Cost and Timberline ODBC. There must also be an open
database connectivity (ODBC) data source pointing to the Timberline
Office data folder, and an application programming interface (API)
provided by Timberline Office to interface between the integrator
114 and the accounting system 113.
[0212] Generally, the integrator 114 enables the general contractor
to import an application for payment from the web server 52 into
the accounting system 113 to generate A/P and A/R invoices with
little user interaction. Also, the integrator 114 enables the
general contractor to match up actual job costs from the accounting
system 113 with the applications for payment received from
subcontractors and submitted to the owner/architect. Thus, the
general contractor may more easily manage cash flow, and assure
that billings keep pace with costs. For example, the general
contractor may upload job cost information from the accounting
system 113 and display the information to assist with preparation
of a general contractor application for payment.
[0213] In an embodiment, a project is set up with respect to the
contract administration program and the accounting system 113.
Setting up the project involves establishing a relationship between
the contract administration program projects and corresponding
accounting system job, establishing a relationship between the
contract administration program cost structures (e.g., schedules of
values and change orders) and the accounting system cost structures
(e.g., contracts/commitments and change orders), and maintaining
those relationships as changes occur. Once the relationships have
been established, applications for payment may be downloaded, e.g.,
from the web server 52 via the Internet 50, and imported into the
accounting system 113, e.g., via the integrator 114 and the LAN
120. Data from applications for payment submitted by (or created on
behalf of) subcontractors to the general contractor may be used to
populate A/P invoices, while data from applications for payment
submitted by the general contractor to the owner/architect may be
used to populate A/R invoices. In an embodiment, invoice
information is downloaded and imported after they have been
approved within the contract administration program, although
unapproved invoices may be downloaded as well. Uploading job costs
to the web server 52 from the accounting system 113 enables the
general contractor to prepare its own applications for payment,
based on actual costs incurred, as recorded by the accounting
system 113.
[0214] FIG. 22 is a flowchart depicting an exemplary process by
which the contract administration program (e.g., GCPay.RTM.) is
integrated with a system of record, such as an accounting system
(e.g., Timberline.RTM. Office). At step s2212, the interface is
initiated, for example, by installing integrator software is
installed on the integrator 114. In an embodiment, the setup
program for the integrator 114 may be downloaded from the web
server 52 via the Internet 50. The integrator software may be
loaded directly, however, such as through a compact disk, a flash
memory, or the like. Once the setup software is stored on the
computer (e.g., web client 103), it may be run to install the
integrator 114 computer program, configuring the integrator 114.
The user (e.g., administrator) may be required provide appropriate
login and passwords for both the contract administration program
and the accounting system 113. The integrator 114 validates the
credentials using the login information from the web server 52 and
the accounting system 113, respectively.
[0215] At step s2214, the relationships between the
"subcontractors" identified with respect to the contract
administration program and the "vendors" identified with respect to
the accounting system 113 are mapped to one another. Likewise, the
relationships between the "owner" and/or "architect" identified
with respect to the contract administration program and the
"customer" identified with respect to the accounting system 113 are
mapped to one another. In an embodiment, the vendors created and
saved in the accounting system 113 may be uploaded to the web sever
52, and matched with subcontractors created and saved in the
contract administration program. Likewise, the customer created and
saved in the accounting system 113 are uploaded to the web sever
52, and matched with the owner/architect created and saved in the
contract administration program. The matching may be performed at
the contract administration program web site, either manually or
automatically, for example, using key terms to identify like
entities. All parties may be uploaded at one time, e.g., in a
batch, or predetermined sets of vendors of various types may be
uploaded incrementally. For example, the accounting system 113 may
include "subcontractor" as one type of vendor. Alternatively, the
parties may be uploaded on a project-by-project basis (after the
projects have been created and associated, as discussed below).
This may be done automatically by the integrator 114 using
corresponding job records. Also, when matching is done on a
project-by-project basis, the parties in the contractor
administration program may be searched at the web server 52 in
association with a particular project.
[0216] A generally new project includes creating a contract
administration program project and an accounting system job. Once
the project is created, the structures representing the contractual
arrangements are created. In the contract administration program,
the structures are schedules of values and change orders (as
discussed above) and in the accounting system 113, the structures
are contracts, commitments and change orders, for example. The
structures are related to one another and stored at the web server
52 and/or the database 53. In an embodiment, the schedules of
values created by (or on behalf of) the subcontractors for
submission to the general contractor correspond to the commitments
of the accounting system 113, and the schedules of values created
by the general contractor for submission to the owner/architect
correspond to the contracts of the accounting system 113.
[0217] In an embodiment, the relationships between the structures
may be established by creating the accounting system 113 structures
first, and then creating the corresponding schedules of values for
the contract administration program, which may be done
automatically, e.g., at the web server 52. Alternatively, the
accounting system 113 structures and the schedules of values may be
created separately, and subsequently mapped to one another at the
web server 52 or the integrator 114. Once the relationships are
established, the corresponding dollar amounts may be compared to
validate the accuracy of the mapping.
[0218] At step s2216, the contract administration program project
is associated with one or more accounting system contracts and/or
jobs. The integrator 114 enables the contract and job information,
along with the associated parties, to be uploaded from the
accounting system 113 to the web server 52 via the Internet 50. In
an embodiment, contract and commitment change orders, derived from
information in a job cost transaction table of the accounting
system 113, may also be uploaded to the web server 52. An "update"
button, for example, on a screen shot provided by the integrator
114 may be selected at any time during project performance to
upload updated contract, commitment and/or change order information
to the web server 52.
[0219] Once the various relationships between the contract
administration program project and the accounting system job(s) are
established, the integrator 114 associates the subcontractor
schedules of value with corresponding commitments of the accounting
system 113 at step s2218. For example, line items of the schedules
of values are associated with entry items of the commitments. The
integrator 114 may assist in establishing the schedule of values by
uploading the accounting system commitments to the web server 52.
For example, to create a subcontractor schedule of values, the
subcontractor is first added to the contract administration program
project, as discussed above, and mapped to a corresponding
accounting system vendor.
[0220] In an embodiment, a schedule of values web page provided by
the web server 52 provides three possible way to create a schedule
of values corresponding to a subcontractor: manually entering line
items via web client 103, loading a template containing previously
saved items, and loading commitments uploaded for the subcontractor
(vendor). When the loading commitments option is selected, and one
or more uploaded commitments may then be selected for loading. The
schedule of values form is then populated with entry items of the
uploaded commitment items. The newly created schedule of values is
saved, at the web sever 52 and/or database 53, and the line items
are automatically mapped to the commitment entry items on which
they are based.
[0221] When a subcontractor schedule of values is manually created
at the web server 52, it can be subsequently mapped to the
accounting system commitments. Mapping previously created line
items is useful, for example, when if the schedule of values has
greater detail than the commitments, or when the subcontractors
create the schedules of values themselves, and submit them to the
general contractor for approval. To map an existing subcontractor
schedule of values to an accounting system commitment, the
subcontractor must first be mapped to the corresponding vender in
the accounting system 113, as discussed above. A web page provided
by the web server 52 lists the previously built schedules of
values. The desired schedule of values is selected and a "map
commitments" button, for example, is clicked to display a list of
line items corresponding to the selected schedule of values. Each
line item includes an adjacent drop down list containing the
uploaded commitment entry items for the mapped vendor. Multiple
line items may correspond to one commitment entry item, since the
schedule of values typically provides more detail. After an
appropriate commitment entry item is identified for each line item
of the selected schedule of values, the mapping is completed by
clicking a "select" button, for example.
[0222] At step s2220, the general contractor schedule of values for
the project, which provided to the owner/architect by the general
contractor, is associated with corresponding contracts of the
accounting system 113. The integrator 114 may be used to assist in
the creation of the general contractor schedule of values by
enabling contract information to be uploaded from the accounting
system 113 to the web server 52. The web server 52 provides three
possible way to create the general contractor schedule of values:
manually entering line items via web client 103, loading a template
containing previously saved items, and loading a contract uploaded
from the accounting system 113. In an embodiment, selecting the
contract loading option automatically populates the schedule of
value line items with entry items from the uploaded contract. The
schedule of values is saved, e.g., at the web server 52 and/or the
database 53, and the line items are automatically mapped to the
contract entry items on which they were based.
[0223] The general contractor schedule of values may likewise be
manually associated with the accounting system contract. For
example, the schedule of values line items may be created manually,
as discussed above with respect to FIG. 4. Subsequently, the
schedule of values be viewed and a "map contract" button, for
example, is clicked to display a list of the corresponding line
items. Each line item includes an adjacent drop down list
containing the uploaded contract entry items for the corresponding
accounting system contract. Multiple line items may correspond to
one contract entry item, since the schedule of values typically
provides more detail. After an appropriate contract entry item is
identified for each line item of the schedule of values, the
mapping is completed by clicking a "select" button, for
example.
[0224] In an embodiment, the integrator 114 assists in managing
change orders of a project. For example, both contract and
commitment change orders of the corresponding accounting system job
are uploaded to the web server 52 at step s2222 to be associated
with the appropriate schedule of values. The uploaded accounting
system change orders are converted to contract administration
program change orders that modify appropriate schedules of value.
For example, by selecting an "update" button on a web page provided
by the integrator 114, corresponding to the job, all approved
change order information that has occurred since the last update is
uploaded to the web server 52. The updating may be performed every
time a new change order is approved, or on a periodic basis, such
as weekly or monthly.
[0225] To convert the uploaded change orders to contract
administration program change orders, the web server 52 is accessed
and change orders under the selected project are viewed. If there
are subcontractors that have accounting system commitment change
orders that have not yet been converted to contract administration
program change orders, there are two options. First, contract
administration program change orders may be created and approved
for all uploaded commitment change orders. Second, contract
administration program change orders may be created and approved
only for a particular vendor. In an embodiment, change orders
initially implemented in the contract administration program may
likewise be downloaded to the accounting system 113.
[0226] In an embodiment, the integrator 114 enables the general
contractor to validate that all of the elements of the contract
administration project have been mapped to their equivalents in the
accounting system 113 at step s2224. Also, the general contractor
will be alerted if dollar amounts between associated items differ.
For example, a pop-up window may be provided by the integrator 114
as an alert if a subcontractor schedule of values differs in amount
from the total accounting system commitment items which have been
associated with the schedule of values line items.
[0227] Generally, once a project has been set up in the contract
administration program and a corresponding job has been set up
accounting system 113, and the various line items and entry items
have been mapped, A/P invoices may be downloaded from the web
server 52, reviewed and imported directly into the accounting
system 113, in real time. Also, A/R invoices may be downloaded from
the web server 52 and an import text file may be generated for
importing to the accounting system 113, as discussed below.
[0228] Referring again to FIG. 22, the integrator 114 enables the
general contractor to create accounting system A/P invoices from
subcontractor applications for payment received through the web
server 52. At steps s2226, subcontractor applications for payment
are downloaded from the web server 52 to the integrator 114. A
screen shot from the integrator 114 may provide a list of
subcontractor applications for payment which has been downloaded
from the web server 52. After review, the applications for payment
are imported directly to the accounting system 113 via the
integrator 114, for example, by clicking an "import all" button on
the integrator screen shot. In an embodiment, the accounting system
113 receives the information in real time through the API and
creates corresponding A/P invoices for the associated vendors at
step s2228.
[0229] The integrator 114 also enables the general contractor to
create accounting system A/R invoices from general contractor
applications for payment. In an embodiment, the general contractor
application for payment may be created using the A/P invoices,
uploaded via the integrator 114 at step s2230. Alternatively, the
application for payment may be created using only the contract
administration program, as discussed above, for example, with
respect to FIG. 10.
[0230] Once the general contractor application for payment is
created, it is downloaded from the web server 52 to the integrator
114 via the Internet 50 at step s2232. A screen shot from the
integrator 114 may provide a list of receivable applications for
payment which has been downloaded from the web server 52. After
review, the application for payment is sent to the accounting
system 113 via the integrator 114, for example, by clicking an
"import all" button on the integrator screen shot. The accounting
system 113 receives the information and creates corresponding A/R
invoices for the associated owner/architect at step s2234. In an
embodiment, the A/R invoices may be created from the application
for payment by creating a file compatible with the accounting
system 113 import tool, such as an import-text-file, using default
A/R import template field definitions. The A/R module is then
launched to import the file to the accounting system 113, and the
A/P invoices corresponding to the applications for payment are
posted like any other A/P invoice.
[0231] Multiple items on an application for payment may be merged
into a single item on an accounting system invoice, for example,
when the multiple items of the application for payment refer to the
same accounting system commitment item.
[0232] In an embodiment, the integrator 114 may also include a job
cost display, which uploads a point-in-time snapshot of the
accounting system job cost from the accounting system 113 to the
contract administration program on the web server 52. Each
job/extra/cost code/category combination may then be mapped to an
item on the schedule of values for a particular job. For example,
each item on the job costs report may be listed on a contract
administration program web page provided by the web server 52, and
a line item of the schedule of values may be entered in a field
corresponding to the job cost item. This reveals the actual cost
for each line item of the schedule of values, which assists the
general contractor in preparing its (receivable) application for
payment to the owner/architect and increases the timeliness and
accuracy of billings.
[0233] It is understood that various terminology, such as vendors,
commitments and contracts, are merely illustrative, based on use of
Timberline.RTM. Office as an example of the accounting system 113.
The terms are intended to distinguish information used in the
contractor administration program from information used in the
accounting system terms, which may overlap. However, the various
terms are for explanation purposes, and do not limit the scope or
spirit of the present invention.
[0234] In an embodiment, the contract administration program
further includes query capability, residing on the web server 52,
which enables structured searches of the database 53 to extract and
retrieve information. For example, the structured query may
identify projects, date or date ranges, specific fields from
schedules of values and/or applications for payment, and the like.
Upon retrieval, the requested information may be displayed at web
clients 102-105, for example. In an embodiment, the information may
be displayed in a text format.
[0235] Also, user defined extract files may be obtained, on demand
or according to user defined criteria, such as scheduled dates or
times. The extracted information may be displayed at the web
clients 102-105, for example. The user (e.g., the general
contractor at the web client 103) may import the extracted files
into its own system of record (e.g., accounting system 113) for
various reporting purposes.
[0236] In another embodiment, the contact administration program is
configured to generate work in process (WIP) reports by populating
predetermined fields of the report based on contract administration
data and calculating entries to other predetermined fields of the
report. Generation of the WIP reports includes change order
information, which have been submitted and/or approved by the
general contractor and subcontractors. FIG. 23 is an exemplary
spread sheet indicating a work in process report 2300 of sample
projects 1 and 2, according to an aspect of the present invention.
FIG. 23 may be a screen shot provided by the web server 52 to the
general contractor at the web client 103, for example. It is
understood, however, that other participants may implement work in
process reports via the web server 52, which reports may be
displayed at corresponding web clients 102, 104 and 105. Also, for
convenience, the WIP report 2300 has been divided into 2300a and
2300b, although it is understood that the top and bottom rows in
2300b correspond to the same jobs to which the top and bottom rows
in 2300a correspond.
[0237] A work in process report provides a way for contract
participants to quickly evaluate the financial status of each job
using the contract amounts, revenue and costs incurred to date,
estimates of revenue and costs to be incurred through the project
completion, current billings to date, gross profit and other
factors, as shown in FIG. 23, for example. Using these amounts,
calculations of underbillings and overbillings can be completed,
providing the participant's cash position on each job. This data
may be gathered throughout a given time period and accumulated in
one report.
[0238] Although some financial accounting packages provide WIP
reports, the cost and revenue data must be added to the financial
accounting package for the report to generate correctly. Therefore,
automatic provisioning of the WIP reports leads to increased report
accuracy and project tracking efficiency. Further, account package
typically do not adequately capture change orders.
[0239] By requiring participants to approve additional cost items,
the contract administration program can provide accurate cost data
relevant to the creation of WIP reports. For example, the
participant provides an estimate of costs to be incurred until the
job is complete (e.g., column G of FIG. 23), and the contract
administration program automatically calculates estimated revenue
remaining to job completion, as discussed below, thus providing an
accurate financial position of each job.
[0240] FIG. 23 will be discussed with reference to a general
contractor, accessing the web server 52 via the web client 103, as
an example of a contract participant generating a WIP report using
the contract administration program. FIG. 24 is a flowchart
depicting an exemplary process by which a work in process report is
provided, according to an aspect of the present invention.
[0241] In an embodiment, the general contractor selects a "WIP
report" tab, for example, from a Welcome web page or home page
whenever it accesses the web server 52. A WIP report web page is
then displayed at the web client 103 at step s2412 of FIG. 24. The
WIP report web page may include, for example, a list of jobs and/or
job numbers from which the general contractor may select at step
s2414. In an embodiment, the general contractor may select an "all"
button, for example, to generate WIP reports for all pending
projects.
[0242] Upon initiation of a WIP report, the contract administration
program automatically populates many of the report fields or
columns using previously calculated and/or stored data accumulated
during administration of the particular contract at step s2416. For
example, in an illustrative embodiment, the contract administration
program automatically populates the job number (column A), job name
(column B), contract amount (column C), revenues earned from
inception of the project (column E), total cost incurred from the
inception of the project (column F), and the amount billed to date
(column I). These entries may be retrieved from the database 52,
for example. The revenues earned are the revenue amounts
corresponding to the work performed, all or a portion of which are
reflected in the general contractor's applications for payment to
the owner/architect, and the total cost incurred includes payments
or payment obligations made in response to the subcontractors'
received (and approved) applications for payment. Likewise, the
amount billed to date includes all of the applications for payment
which have been submitted to the owner architect, payments of for
which have not necessarily been received. This information is
reflected in the schedule of values as work progresses, as
discussed above.
[0243] At step s2418, the user enters estimated costs in a total
estimated cost field (column G). The total estimated costs include
cost items in addition to the cost items identified by the
subcontractors' applications for payment, which are tracked by the
contract administration program. For example, the additional cost
items may include internal costs (as opposed to external costs)
incurred by the general contractor in association with contract
performance, which are not necessarily tracked by the contract
administration program. For example, internal cost may include
internal labor and material costs for work performed directly by
the general contractor rather than subcontracted to another party.
These estimated additional costs may be added to the recorded costs
(either manually by the user or automatically by the contract
administration program) in order to determine the total estimated
costs.
[0244] At step s2420, the contract administration program
calculates the remaining entries in the WIP report 2300. For
example, in an illustrative embodiment, the contract administration
program calculates estimated gross profit (column D), gross profit
(column H), estimated cost to complete (column J), cost and
estimated earnings in excess of billings (column K) and billings in
excess of costs and estimated earnings (column L) with respect to
project performance from inception to the date of the report, e.g.,
shown as Mar. 31, 2008. Also, the contract administration program
calculates revenue (column M), cost (column N) and gross profit
(column O) with respect to the most recent reporting period, e.g.,
the previous 6 months ended Mar. 31, 2008.
[0245] The estimated gross profit is calculated by subtracting the
total estimated costs (column G) from the contract amount (column
C), and entered in column D. The gross profit is calculated by
subtracting the revenues earned (column E) from the total cost
incurred (column F), and entered in column H. The estimated cost to
complete is calculated by subtracting the total estimated costs
(column G) from the total cost incurred (column F), and entered in
column J. Both the cost and estimated earnings in excess of
billings, which represent overbillings, and the billings in excess
of costs and estimated earnings, which represent underbillings, are
determined by subtracting the billed to date (column I) from the
revenues earned (column E). When the revenues earned are less than
the amount billed to date, this indicates the project is
overbilled, and the amount is entered in column K, as shown with
respect to Job No. 1. When the revenues earned are greater than the
amount billed to date, this indicates the project is underbilled,
and the amount is entered in column L, as shown with respect to Job
No. 2.
[0246] With respect to the current time period calculations, the
revenue is calculated by subtracting all of the revenue earned
and/or booked in previous time periods (e.g., from previous WIP
reports on the same project) from the revenues earned (column E),
and entered in column M. The cost is calculated by subtracting all
of the costs incurred and/or booked in previous time periods (e.g.,
from previous WIP reports on the same project) from the total cost
incurred (column F), and entered in column N. The gross profit for
the current time period is calculated by subtracting the current
period cost (column N) from the current period revenue (column M),
and entered in column O.
[0247] The completed WIP report 2300 is displayed to the user at
step s2422, for example, at the web client 103. Also, the various
entries are stored at steps s2424 in the database 52 for tracking
purposes, and to provide data for generation the next WIP
report(s). In an embodiment, past reports and/or associated data
may be accessed via the web server 52. Also, in an embodiment, the
WIP reports and/or associated data may be downloaded to the
accounting system 113 via the integrator 114.
[0248] Although the invention has been described with reference to
several exemplary embodiments, it is understood that the words that
have been used are words of description and illustration, rather
than words of limitation. Changes may be made within the purview of
the appended claims, as presently stated and as amended, without
departing from the scope and spirit of the invention in its
aspects. Although the invention has been described with reference
to particular means, materials and embodiments, the invention is
not intended to be limited to the particulars disclosed; rather,
the invention extends to all functionally equivalent structures,
methods and uses such as are within the scope of the appended
claims.
[0249] In accordance with various embodiments of the invention, the
methods described herein are intended for operation as software
programs running on a computer processor. Dedicated hardware
implementations including, but not limited to, application specific
integrated circuits, programmable logic arrays and other hardware
devices can likewise be constructed to implement the methods
described herein. Furthermore, alternative software implementations
including, but not limited to, distributed processing or
component/object distributed processing, parallel processing, or
virtual machine processing can also be constructed to implement the
methods described herein.
[0250] It should also be noted that the software implementations of
the present invention as described herein are optionally stored on
a tangible storage medium, such as: a magnetic medium such as a
disk or tape; a magneto-optical or optical medium such as a disk;
or a solid state medium such as a memory card or other package that
houses one or more read-only (non-volatile) memories, random access
memories, or other re-writable (volatile) memories. A digital file
attachment to email or other self-contained information archive or
set of archives is considered a distribution medium equivalent to a
tangible storage medium. Accordingly, the invention is considered
to include a tangible storage medium or distribution medium, as
listed herein and including art-recognized equivalents and
successor media, in which the software implementations herein are
stored.
* * * * *
References