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Hi! Is anyone else here attending WTBA's Holiday Party this evening? Would love to discuss how we're helping Wisconsin contractors manage & improve daily field operations . Regardless, would be great to meet some more CFMA folks in Madison! ------------------------------ Eric Christensen Founder/CEO IVO Systems, Inc. Madison WI (414) 405-2648 eric@ivosystems.com ------------------------------

Jeff, the Pay-When-Paid clause is pretty typical in subcontracts, but it does impose a significant cash flow problem for many specialty trade partners. And Kayla is absolutely right, the smaller contractors take the biggest hit. CFMA's Benchmarker Survey helps to understand the nature of this problem. For the ratio of Days in AP (Accounts Payable X 365 / Total Direct Costs) most general contractors are between 35 to 45 days, while most subcontractors ...

Pay when paid is not enforceable in our state. As a sub we will redline this in the contract from the GC. If it is an issue, we will file a lien before our lien rights expire. ------------------------------ Ruthanne Rambeau Regional Business Manager VSC Fire & Security Willow Spring NC (919) 436-6641 ------------------------------

We typically will lien our work after non-payment after 90 days. In NY Pay-when-Paid doesn't work well because the NY law states the sub can't take on the credit worthiness of the customer thru the GC. But folks still try to put it in the agreements in NY. ------------------------------ Vincent Holley CPA CFO Henrietta NY (585) 241-8777 ------------------------------

Picking up this conversation from a couple of years ago, as we are now considering PLI coverage. I didn't see any responses to Deanna's querry. Anyone in CFMAland using PLI? Pros? Cons (besides additional cost?) Thanks, ------------------------------ Cindy DiCosola CFO Arnett Construction/Arnett Custom Homes Charleston SC ------------------------------

I would appreciate a copy as well, bshofferman@rklesolutions.com Thank you ------------------------------ Ben Hofferman CPA, CITP Chief Construction Officer RKL LLP Bala Cynwyd PA (610) 862-0035 ------------------------------

I'd appreciate a copy as well. cbrister@momentummechanical.com ------------------------------ Carolyn Brister CFO Momentum Mechanical Fort Worth, TX 76118 cbrister@momentummechanical.com ------------------------------

So, we are a commercial MEP subcontractor. We currently utilize a master service agreement with our subcontractors, with a project-specific contract for any hired work. Our view is that this enables us to have a standard agreement in place with anyone that performs work for us agreed to ahead of time, thus making the project-specific contract (and any negotiations) more efficient. We'd like to now start doing the same with our GCs: having a ...

Tom, thank you for sharing. So far, I think this is the best suggestion of how to handle the lag instances, very intuitive. I also like the single phase for accrual and reversals. Chris Graham Cone & Graham, Inc. Office: 813-623-2856 CGraham@conegraham.com

Chris and Tom, Here is the technique I have my clients use: 1) Close your trailing period (for AP processing only) as early as practical and advance the processing date for AP into the next month. 2) Book AP invoices as received into the following month, but take care to book the invoice date to the period the invoice truly belongs to. 3) Then when you are ready to close, you generate an Excel-based (Infolink) query that retrieves all ...

My vote is for Siteline!!! ------------------------------ Christopher Johnson CFO Nycom Inc. Midlothian VA (804) 419-8127 ------------------------------

We are a GC/CM as well and have PWP terms as well. The only push back we get is the "pay if paid" clause where if we do not receive payment then we are not liable for payment owed. The liability remains with the owner/client. ------------------------------ Joe Woldring Controller Midwest Construction Group, Inc. Zeeland MI (616) 772-6070 ------------------------------

Hi Maria, I require receipts for all transactions. I have an other expense account for "Non-deductible Expense-Missing Receipts" and anything without a receipt gets coded there. After month-end close, ownership receives a list for that period and YTD, and they review with the responsible parties. Bugging people constantly for receipts, even when they know the process doesn't teach them to be responsible and ultimately removes their accountability, ...

That makes sense, we use Spectrum as well, thank you for sharing! Chris Graham Cone & Graham, Inc. Office: 813-623-2856 CGraham@conegraham.com

It would be an adjustment to the AP sub pay app entry, directly in AP. We use Viewpoint Spectrum. To clarify, this is our process: Get approved pay quantities from DOT for the period. Create all related subcontractor pay apps for the period, based only on the pay quantities from DOT. Receive the sub's invoice (late or never sometimes). Review the sub's invoice against what was already processed in AP in 2nd step. If there are differences ...

Hello - do you plan on doing another one any time in the near future? Thanks!! ------------------------------ Agron Gjelaj Senior Project Accountant Urban Atelier Group (203) 243-4380 ------------------------------

Thanks for the detail Kim – when you say adjustments in the next period what do you mean specifically? Journal entries to credit/debit job cost to get the prior pay app in line with what is received? Chris Graham Cone & Graham, Inc. Office: 813-623-2856 CGraham@conegraham.com

As mentioned earlier, we work for PADOT. We post a sub payment application in AP based on what we are billing out to PADOT and make any adjustments in the next period for any discrepancies between our calculated sub payment application and the invoice that is subsequently received, assuming that the discrepancies are approved for payment. While an accrual for job cost will get you the amounts you need for your WIP, it will not accurately reflect ...

We utilize a PWP clause. If you're changing practices going forward, you'll want to communicate it to your business partners ahead of time, have a good reason or explanation for them why there is a change in practice, and follow through in paying when paid once you implement the change. I'd keep in mind if you're changing your terms for subs, you may not get preferential pricing for bids if you were net 30 with them or something like that. Think through ...

Hi Katie, We have been through a very similar situation. Vista is a powerful system, but it has to be set up correctly on the front end in order to function the way it is intended and to produce accurate, real time reporting. What I have seen in the past is that legacy controllers are not always enthusiastic about making the changes required to pull information directly from Vista. In my opinion, based on a difficult lesson learned, it is essential ...

Hi Chris, We don't accrue..our contracts are mostly %-complete for billing on SOV, we don't have to deal with quantities. But when the GC cuts our billed amount we do have to make adjustments into the following month. Usually we just post the subs' AIA's as submitted, then make adjustments in the subsequent billing cycle. So there may be some mis-match between what GC pays us vs what we pay subs. Rich Larson ...

What happens if they do not meet the date, but you have billed the owner for their quantities because you have gotten confirmation in the field? Do you all accrue? Chris Graham Cone & Graham, Inc. Office: 813-623-2856 CGraham@conegraham.com

Hi Jeff, We are a commercial GC in California and have pay when paid language in our subcontracts. In the state of California, pay when paid is technically not legal, but we never have push back on it because it's standard in the industry. ------------------------------ Madison Strano VP of Finance Morris, Inc. Irvine CA 949337003 ------------------------------

We don't do any highway work but do have a lot of subcontracts. We use GCPay to manage their AIA's, which they usually submit by the 25th and GCPay has a 'no later than' setting which we set as the 30th. So on the 1st we're ready to export of of GCPay and right into Vista SL module. ------------------------------ Richard Larson Controller The Anderson Company LLC Manassas VA (703) 217-7993 ------------------------------

I would love to get a copy of this too if possible. darren@faberconstruction.com ------------------------------ Darren Leyenhorst Vice President Faber Construction Lynden WA (360) 815-4234 ------------------------------

We are a CM/GC and we have PWP terms in our subcontract agreements. It's standard in the industry; however, you need to check with the state the work is being performed. Some states do not allow for PWP. Our language states we will pay subcontractor "on or before 10 days (or such other time as is required by the Prime Contract or by law) after payment by Owner...." ------------------------------ Jamie Turner Triversity Construction Cincinnati ...

Hi Sandrah, I would love a copy as well, thank you. wsalmin@wbnation.com ------------------------------ Wendy Salmin AP/AR Manager Wright Brothers Eagle ID (208) 938-6000 ------------------------------

Thanks, Tom, for the explanation. I would be interested in reviewing a redacted version of your excel workbook if you wouldn't mind sharing – working on something similar on my end at the moment as well. If it is proprietary and you do not wish to share, no worries of course. Chris Graham Cone & Graham, Inc. Office: 813-623-2856 CGraham@conegraham.com

Hi Sandrah, I would love a copy of this. Thank you. Ann ------------------------------ Ann Bowman CCIFP, CPA Chief Financial Officer Forcine Concrete and Construction Co Inc Malvern PA (610) 209-6348 ------------------------------

Our PM's have direct access to the JC module in Spectrum for all their jobs so they can see their costs anytime. For CTC and quantity updates, I have developed an excel based projected CTC workbook using infolink that I will refresh and give to them as soon as all the major costs for a particular month are posted. Our goal for formal close out is 30 days. We are working to try and get that down to a lower number but feel getting the cost in the correct ...

Hi Kayla, We currently work with the Arizona Contractor License Center and have had a very positive experience. They assisted us with completing our licensing application and guided us through everything needed to become properly set up in Arizona. Here's the link to their website: https://www.azclc.com/test-preparation?gad_source=1 Azclc Everything You Need to Pass Your Contractor Exam | Arizona Contractor ...

Subcontractor here. Pay when paid would be standard. Even my subs' subcontracts have pay when paid language. The subs that usually balk are quite small, usually with a headcount of 10 or less. ------------------------------ Kayla Addison Project Coordinator Empowered Electric LLC North Kansas City MO (816) 814-0194 ------------------------------

Has anyone used a service or attorney to get their entity set up in Arizona that they had an awesome experience with? ------------------------------ Kayla Addison Project Coordinator Empowered Electric LLC North Kansas City MO (816) 814-0194 ------------------------------

I'm curious how others are accounting for the shared savings, or no shared savings on their GMP contracts in relation to WIP. What's the best practice to project that on the job cost projections? ------------------------------ Katie McBride Director of Accounting and Finance Quiring General, LLC Fresno CA (559) 385-1191 ------------------------------

We are vetting out products to assist with our inventory tracking in our yard. One of the products that has really grabbed our attention is Field Materials AI. Has anyone used this product? FYI, we utilize Vista by Viewpoint for our ERP solution. Thanks! ------------------------------ Rory Carlson CCIFP Vice President of Accounting & Finance Adjustable Concrete ------------------------------

Hi Brigid! I would be interested in learning more about this course! Andi ------------------------------ Andi Pellicci Controller Apex Underground Arvada CO (303) 304-2838 ------------------------------

I too would love a copy :) agelevic@uag.nyc ------------------------------ Agron Gelevic Senior Project Accountant Urban Atelier Group Shelton CT (203) 243-4380 ------------------------------

That sounds great Sandra. Would love a copy if you don't mind sharing stephaniem@amberelectrical.com Thank you in advance! ------------------------------ Stephanie Mummert Accounting Manager Amber Electrical Contractors, Inc. Irving TX (972) 989-1785 ------------------------------

Thanks Steven Chris Graham Cone & Graham, Inc. Office: 813-623-2856 CGraham@conegraham.com

I do not use what Vista provides for an extra period. When doing JC Adjustments, I can select it as an Auto Reverse and then initiate those reversal entries in the next month. ------------------------------ Steven Altobello CPA, CCIFP Chief Financial Officer Shilling Construction Company Manhattan KS (785) 776-5077 saltobello@shilconst.com ------------------------------

Hi, I would accrue the costs for any invoices not in possession or not posted yet. I would then reverse the accrual on 12/1 and then post the invoice using a "12/1" accounting date and invoice date in line with period. This keeps your job cost accurate and your over/under billings will tell more of a story if all costs are posted in the correct time period. Subcontractors - get your invoices in on time to ensure timely payment! Cash ...

Hi Sandrah, If possible, I'd love to receive a copy of this too! jennifer.hall@cssllc.us Thank you, ------------------------------ Jennifer Hall Complete Sitework Services East Dublin GA ------------------------------

Hi Chris, This is an easy one... a. Accrue the cost 11/30, reverse 12/1, and post invoice in December upon receipt in December Happy Holidays! ------------------------------ David Levasseur CFO DNB Infrastructure Inc david@rnr-construction.com ------------------------------

arden.ferris@gmail.com

Good Morning, Our requirements are a receipt/invoice for all expenditures whether on company credit cards or submitted as out-of-pocket reimbursement. At a prior organization the expectation was receipts for everything, but the requirement was all items of $75.00+ required a receipt or invoice. The $75.00+ requirement was to align with the IRS audit standard. Regarding efficiency, we focused on having the materials, tools, and supplies required ...

Hi Brigid, I would be interested in this content as well, to share with our Supers and PMs. Thanks, Rod ------------------------------ Rod Welch Finance GAME Inc Kennewick WA (360) 703-7736 ------------------------------

Hi Sandrah, I would love to receive a copy of this as well! jray@harkinsbuilders.com Thank you, ------------------------------ Jacqui Ray CPA Acting Controller Harkins Builders Inc Columbia MD (443) 603-7666 ------------------------------

Hi Dan, We're hearing this a lot right now - many contractors are being pushed toward QBO because of the Desktop sunset, but in reality a good number are choosing to stay on QBD for as long as possible while they evaluate longer-term ERP options. A quick perspective from what we're seeing across construction finance teams: 1. If you move to QBO temporarily You can still get a solid AP process on top of it. Several contractors we work ...

I would also like a copy , thanks. Tim Geppert Central Texas CFOs , LLC 2108679038 WWW.Centraltexascfos.com. Tim@centraltexascfos.com Austin-San Antonio