Responsibility:

Anyone with purchasing power in the company is responsible for tracking expenses and ensuring accurate records.
Prior training on BuilderTrend’s cost inbox, purchase order, reporting, and bills features is required for all involved parties.

Timing:

This process should be carried out continuously throughout the project lifecycle and finalized upon project completion.
Procedures
What Will Be Covered:
1. What Expenses Need to Be Tracked on a Construction Project
2. How to Track In-House Staff Costs
3. How to Track All Project Receipts or Paid Invoices
4. How to Track Subcontractor and Vendor Costs
5. What Miscellaneous Expenses Don’t Need Staff Tracking
6. What Reports Are Needed to Develop Total Profit and Loss
7. How to Develop Cost Reports
What Expenses Need to Be Tracked on a Construction Project:
- In-House Staff Hours:
  - Field Labor
  - Project Manager
  - Superintendent
  - Estimators
  - Design/Permit Coordinator
  - Any Other Staff
- All Project Receipts or Paid Invoices:
  - Permit Fees, Materials, Rentals, Disposable Tools
- Subcontractor and Vendor Contracts and Payments:
  - Glass installers, Locksmiths, Specialty Finishers, Decals, etc.
- Miscellaneous Construction Overhead Expenses:
How to Track In-House Staff Costs:
- Field Labor (Carpentry, Labor, etc.): Use BuilderTrend Geo-Fencing Feature.
- Project Manager: Use Weekly Hour Report.
- Superintendent: Use Weekly Hour Report.
- Estimator: Use Weekly Hour Report.
- Design/Permit Coordinator: Use Weekly Hour Report.
- Any Other Staff: Use Weekly Hour Report.
How to Track All Project Receipts or Paid Invoices:
1. All receipts will be uploaded into the cost inbox feature on BuilderTrend by the purchaser with the applicable job selected.
2. Under the cost inbox tab in BuilderTrend, the receipt will be converted to a bill.
3. Select the "mark ready for payment" button, then "record offline payment," and the process is complete.
4. This will be performed once per week by admin.
How to Track Subcontractor and Vendor Costs:
1. At the time of contracting or hiring a vendor, create the vendor or sub-profile if they don't already have one (they do not need to use BuilderTrend, but account creation is preferred for record-keeping).
2. Create a purchase order in BuilderTrend for the contract or agreed amount.
3. Once the work is performed or progress is made, upload all invoices under the bills section in BuilderTrend and apply the bill to the purchase order.
4. Once the invoice is cleared for payment, mark the bill as "ready for payment."
5. Once the invoice is paid, mark the bill as "record offline payment," and the process is complete.
Types of Miscellaneous Expenses Not Tracked by Staff (Tracked by Bookkeeper):
- Office-related: Paper, staples, electronics, etc.
- Tools, Equipment, or Vehicle-related:
  - Gas
  - Tool and equipment maintenance
  - Etc.
- Any other expenses purchased by staff
What Reports Are Needed to Develop Total Profit and Loss:
- Actual Cost Report of All Project Expenses: Obtain from BuilderTrend reports.
- Total Hours Worked Per Project: Obtain from BuilderTrend reports.
- Total Hours Worked by Project Manager, Superintendent, Estimator, Design/Permit Coordinator, and Any Other Staff: Compile from completed Weekly Hour Reports per project.
Developing Cost Reports:
1. Add the Actual Cost Report of all project expenses.
2. Add the total hours worked per project multiplied by the highest paid field staff hourly rate.
3. Add the total hours worked by Project Manager, Superintendent, Estimator, Design/Permit Coordinator, and any other staff multiplied by their rates.
4. Compare this total cost to the total invoiced amount to produce the total profit and loss.

Procedures