Update the Budget with Actuals, Commitments, Schedule, and Billed Revenue
Use Case
As construction work continues on site, new updates are coming in from across the project team on a weekly or even daily basis. The project controller ensures that the budget is accurate and up to date so that stakeholders can make informed decisions based on current data.
This section covers how to keep the budget up to date as project execution progresses. This includes updates related to schedule, design, contracts and work claimed in the field.
Revise Baseline Schedule
As the project progresses, there will likely be changes to the schedule, such as project delays and new scopes of work. As these changes occur, the scheduling team will make updates to schedule dates and activities, including adding new scope items as needed.
Whether using InEight Schedule, Primavera, or another scheduling tool, the scheduling and project teams can reference the schedule’s activities to the related cost items in InEight Control using a tag called Schedule ID.
The scheduler can then keep schedule changes in sync with the budget by exporting an XER file from the scheduling tool and importing it into InEight Control.
Update Budget with Schedule Progress
Depending on your company’s business process, you can update your budget in InEight Control with your schedule’s percent complete values.
Ideas on Site
The method your organization chooses for tracking progress depends on how it prefers to track percent complete.
Physical percent complete
This method calculates completion based on the actual quantities claimed or installed.
For example: 1000 linear feet pipe installed out of 2000 linear feet = 50% complete.
InEight Control, Plan, Progress and Contract use physical percent complete for tracking progress.
Schedule percent complete
This method calculates completion based on how much duration (typically in days) has progressed.
For example: 10 days scheduled to install 2000 linear feet of pipe, 3 days have passed, so the activity is 30% complete. This is the case even if a greater or lesser percentage of pipe is actually physically installed.
InEight Schedule and Primavera use schedule percent complete by default for tracking progress.
Access the following links for details on how to import schedule information into InEight Control via XER file:
Claim Design Progress
If engineering work is included in the scope of your project, you can update quantity information for your engineering-related cost items in InEight Control from InEight Design as the project progresses.
Updating Budgeted Take-Off Quantities from Design
As field conditions are better understood and drawings are refined, the Engineering team can track the change and growth of take-off quantities in InEight Design > Quantity Forecasting module, and send the latest updates to InEight Control for the Construction team to consider.
The project controller can review these discrepancies between the design quantities and the take-off quantities in Control and decide if an adjustment needs to be made to ensure compensation for the correct scope of work.
Let’s look at an example of how that works.
Step 1
A project engineer has been tracking quantity growth for design items in InEight Design, tracking the designs at 30, 60, and 90% complete.
He wants to send the latest quantities to the Construction team for them to review in Control, so he updates the Quantity driver to the latest milestone (90% Qty).
The Forecast (TO) qty now reflects the 90% qty amount.
Note the WBS phase code associated with the quantity items. This is how the system knows what cost item to update in InEight Control.
Step 2
The quantities from InEight Design update the associated cost items in InEight Control automatically.
The project controller reviews the latest quantities (and man-hours) updated from InEight Design and compares them to the budget’s current Forecast (T/O) quantities.
Step 3
The project controller does a quantity adjustment to update the Forecast (T/O) quantity so it matches the updated quantity from Design.
He does this by selecting Actions > Budget move and contract adjustment > Budget quantity and man hour adjustment and filling out the form.
Access the following links to learn more about updating forecast quantities from InEight Design:
Claiming Engineering Progress
EPCs and design firms can use InEight Design to track the progress of their engineering work. If integrated with InEight Control, the quantities claimed in the InEight Design > Engineering module will update the quantities completed of the related cost items in InEight Control automatically.
Let’s take a look at an example.
Step 1
Within InEight Design, one of the project engineers is tracking the work she’s completed on a design.
Step 2
She expands the scope item and selects the steps she’s completed.
She sees the % Complete for this scope item is now updated.
Step 3
Within InEight Control, completed quantities from InEight Design must be pulled in via sync in the Actions menu.
In this case, the project controller selects Actions > Sync > Get Quantities and selects either Through previous pay period or Job to date.
Step 4
The project controller can review the updated progress on the CBS register and in the actual details for each cost item.
Access the following links to learn more about updating claimed quantities from InEight Design:
Realize Contract Commitments, Costs, Accruals, and Progress
Tracking Contract Costs
Cost Accrual
As contractor work progresses and materials are received, if you have not yet received an invoice, you can accrue costs in InEight Contract. Cost accrual allows you to account for costs right away, without needing to wait for invoices to be paid and processed.
These accrued costs can automatically update InEight Control so the project controller can review the actual costs of the related cost items and include these costs in project forecasting before being formally billed by the client.
To update Control with committed and actual costs from Contract, each must be turned on under the Project Settings > Control tab.
Follow the steps below to see an example of how this works:
Step 1
The contract administrator receives material for a contract. He knows invoicing for this material won’t be processed until the end of the month, but he wants to accrue the costs now so they can be included for forecasting.
Within InEight Contract, he goes to the Accruals/Receipts tab and clicks the Add button to add an accrual.
Step 2
On the Add new item window, he makes sure the Accrual button is selected.
He then adds a Description and selects the contract it pertains to.
He adds the posting date, then clicks Save.
Step 3
On the accrual record, he clicks the Add icon to add a line item to this accrual.
Step 4
On the resulting line item, he selects the appropriate Accrual type and GL account, as needed.
He then enters the accrual amount for what he’s received onsite.
Step 5
On the Accruals/Receipts register, the contract admin sees the accrual, along with the WBS item it is associated with.
Step 6
This information automatically updates the actual cost for the cost item in Control that is associated with that contract.
The project controller brings up a custom data block to review committed costs along with the actuals for her contract-related cost items.
These actuals are included in the calculations for forecasting as well.
It may take several minutes for changes made in InEight Contract to update within InEight Control.
Accrual Reversal
Once the invoice for an accrued cost is processed in InEight Contract, the accrued cost from Contract will update as actual costs in InEight Control. To avoid “doubling up” costs for those goods or services, the accrual will need to be reversed in InEight Contract.
To do so, the contract administrator selects the accrual item(s) to be reversed and selects Reverse submission.
Access the following links for additional information about accruals:
Tracking Contract Progress
For contracted work (e.g., for subcontractors and materials), you can break the contract in InEight Contract down into schedule of value items that are easy to claim quantities against and reconcile with contractor invoices.
Access the following links to learn more about setting up and claiming against schedule of value items:
Create Schedule of Value Items
Claim Schedule Items from Contract
When schedule of value line items are set up, because they are associated with contract line items, they also are associated with the contract line items’ assigned WBS codes. This association allows the progress captured in InEight Contract to update the related cost items in InEight Control. This update is done through a sync from the Actions menu, by selecting Actions > Sync > Get Quantities and selecting either Through previous pay period or Job to date.
In the example below, the project controller performed the sync and now sees the progress of her contract-related cost items in the % complete column, updated from the quantities claimed on the related schedule of value items in InEight Contract.
Claim Field Progress
Updating Budgeted Take-Off Quantities from Plan
As the budgeted work for the project is broken down into more detailed components, the field team may make quantity changes at the component level due to conditions in the field. These quantity changes would need to be considered by the project controller for updating the take-off quantities at the budgeted cost item level.
Let’s review an example of how this works.
Step 1
In Plan Quantity Tracking, the superintendent has broken the topsoil cost item down into components to track the work by area.
Step 2
As his team plans the work and does take-offs, it is clear that Area 1 will be more cubic yards than originally budgeted.
The superintendent updates the quantity for the Area 1 component in InEight Plan by selecting the component and clicking the Edit icon.
Step 3
On the Component Details tab, he changes the Component quantity, then scrolls down and clicks Save.
The quantities from all the area components will roll up to their associated WBS item.
Step 4
In InEight Control, the project controller syncs quantities by selecting Actions > Sync > Get Quantities and selecting either Through previous pay period or Job to date.
The project controller creates a custom data block to compare the Plan component total quantity to the Forecast (T/O) quantity at the cost item level.
Step 5
The project controller does a quantity adjustment to update the Forecast (T/O) quantity so it matches the updated quantity from Plan.
She does this by selecting a cost item and clicking Actions > Update Forecast (T/O) qty with Plan component total qty.
Access the following links to learn more about updating budget take-off quantities based on component changes:
Claiming Progress in the Field
For claiming self-performed work, your company’s field team (superintendents, engineers, foremen) can use InEight Progress for tracking progress out in the field.
In some cases, you may have an agreement with a 3rd party contractor that has them track their work using InEight Progress as well.
Using InEight Progress, the field superintendent or engineer creates a daily plan for the work to be done that day. The daily plan includes:
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Man-hours and equipment hours for the WBS cost items they plan to do that day.
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Quantities they plan to install that day, broken down into component steps.
The foreman then executes against that plan, inputting the hours and quantities they perform that day.
After approval by the appropriate team member (e.g., superintendent, field engineer, manager), the captured progress can be brought into the budget in InEight Control.
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Claimed quantities are brought in via sync.
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Hours are brought in via import or ERP integration.
As a result, the project controller can view actuals and progress in the budget.
Access the following link to learn more about the process of claiming progress using Plan and Progress:
Tracking Revenue
As claimed quantities update the percent complete of your cost items in InEight Control, the revenue earned for the associated pay items increases proportionately. Based on this information, you can bill the client, tracking what you’ve billed in InEight Control.
Ideas on Site
The timing and basis for billing the client will vary depending on the agreement between client and contractor. Options include:
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Billing by time period (e.g., monthly)
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Billing by milestone
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Schedule-based billing (based on progress of the schedule)
Let’s review an example of reviewing earned revenue and tracking revenue billed.
Step 1
As the project controller syncs quantities from the Actions menu, she now sees an updated percent complete on her items.
Step 2
Using a custom data block that displays revenue-related columns, she can see the earned revenue, based on the earning rules established for the associated pay items, and the quantities claimed against the related cost items.
Step 3
The project controller tracks revenue earned and bills the client monthly. On the Pay Items register, once she has reviewed the revenue earned for that period, she can indicate that she has billed for that revenue by right clicking on the pay item and selecting Billed revenue details.
Step 4
On the resulting slide out panel, she inputs the Billed revenue amount and other related information.
Note: If integrated with an ERP, you may have billed revenue entries update automatically to your ERP.
Once filled out, she clicks Apply.
Step 5
Under Billed History, she can review the transactional history of the pay item.
Access the following link to learn more about tracking billed revenue: