In project-based works, it is possible to have the manufacturing done by a subcontractor with or without materials. In cases of manufacturing with materials, the material can be supplied and stored on site with the prior approval of the employer. This process is called "preparation" and effective management of the process is of great importance in terms of project cost control.
What is Ihzarat?
Preparation is a process in which the subcontractor procures the material and brings it to the site. In this process:
- Material Supply: The subcontractor supplies the necessary materials and brings them to the construction site.
- Payment for Material: Material is paid to the subcontractor by the employer before the manufacturing takes place. This is important to ensure that the material is available on site and used on time.
- Earned Value Deduction: When the manufacturing process starts, the subcontractor's earned value is deducted from the cost of the materials that have already been put into production. This practice ensures that costs are tracked accurately.
Construction Management with Navappro Construction Management Software
Navappro Construction Management software has features that will allow you to manage the preparation process effectively. With the Preparation Management development in the software, you can easily manage the following processes:
Contract Definitions:
- You can define provisions in employer and subcontractor contracts. This allows you to specify which contract items require provisions.
- Additionally, you can standardize the process by making preliminary definitions on how the preparation will be cut.
Tracking of Provision Cuts:
- In employer and entitlement contracts, you can track the preparation deductions according to the amounts specified in the contract. This feature helps to calculate the costs accurately.
Accounting Records:
- You can create accounting records for the preparation definitions in employer and subcontractor entitlements. This ensures that every stage of the preparation process is documented and provides transparency in financial reporting.
Preparation management is critical for effective cost control in project-based work. Navappro Construction Management software helps you run your projects more regularly and cost-effectively with the comprehensive features it offers to manage your preparation processes. With this software, you can easily manage both contract management and accounting records and successfully complete your projects.