Software Solutions for Landscape Professionals

1. “Landscape Job Costing and Project Management” Planning for Profitability 2011 Webinar Series January 16,2012 Software Solutions for Landscape Professionals Presenter: Marcus vandeVliet Consultant – MV Enterprises marcusv@aol.com

2. The Agenda • The project management process. • Job Package. • Scheduling. • Pre Project phase • CO • Sales • Job costing. • Job Log / work daily. • Customer communications. • Manage 360 demonstration.

3. Project Management Process • Approve the estimate. • Create the Job. • Develop the Job Package • Material PO • Job Logs • Material List • Work Order • Schedule the project • Pre project Planning • Project progress • Project completion

4. Job Package • This is a package of information provided by sales containing all the production information. • This is the transfer point from sales to production for any project. • Critical for the effective communication of all requirements: • Customer needs and special instructions. • Estimating notes and information. • Sales notes and information. • Production notes and information.

5. Job package should be given to the supervisor or Foreman after the project has been scheduled. • Job packet does not have to be 100% complete. • Projects should not be scheduled until all required information is provided. • Production should visit the project site prior to the preconstruction meeting.

6. Job Package • Copy of the Plan • Layout Details • Estimate notes • Special Notes/Details/Instructions • Technical Details • Work Daily • Materials List • Estimate Detail Report • Client Information Sheet • Special Instructions • Map & Directions • Blank Change Order

7. Schedule Phase • Weekly Schedule Meeting • Long term Schedule: All sold projects by crew type. • 1 month schedule on Magnetic board. • 3 Day Magnetic Board: Detailed info. of Projects for production. • Verification of production info (Job Package must be complete to schedule project) • Communicate and update schedule with Clients after meeting.

8. 1 Month Schedule

10. 3 Day Schedule Detail

12. Sales/Production on-site Meeting • Prior to Project Commencement • Sales Items • Review client issues, concerns, instructions, priorities • Review Estimate info • Discuss Technical Items • Review Design Concepts • Production questions. • Production plan: LIMES • Client introduction

13. Material Handling • Purchase Order System • Verify Estimate Purchase Orders • Verify supplier cost • Verify material Handling • Stage in Yard • Deliver direct to site • PU at supplier • Pre deliver materials as project/site allows • Pre deliver equipment as project/site allows

14. Production Project Commencement • Verify all project information is complete and updated. • Utility mark out complete. • Verify all materials ordering, Staging & Deliveries. • Finalize production plan: focus on first and last day. • Collect or trigger commencement payments as per contract.

15. Daily Production Items • Complete Paperwork • Complete Work Daily (Replaces Time clock) • Material master list Update • Material Inventory Sheet • Supplier invoices, Bills, Delivery tickets, etc. • Project Log of events • Daily client communications • Site Management • Clean up • Safety • Organization • Low customer impact • Daily project plan • 2 days ahead

16. Change Order Process • Determine CO process with customer, during contract review. • Determine Change order info and enter in Manage 360 • Complete Change Order form and payment schedule • Signed Change Order by Client • Deposit For Change Order based on work to be Completed • Track CO as a separate work area. • Collect CO payment upon completion of CO.

17. Weekly Sales Meeting • Previous weeks action items • Review Sales Pipeline Report • Discuss bid/sold/pending projects vs. goals per salesperson. • Review all previous weeks leads • Discuss sales or estimating items • Short & Long term schedule • Sales education • Action Items

18. Why Job Costing is Critical ? • Provides the most current information about your company. • Provides information for managers, not accountants. • Provides information that can be used as a management tool, for change. • Holds all employees accountable. • Reconnects the project process.

19. Estimating System Review History With Estimator Production Information Review with Production / Sales Field Collection Of Production Info. Job Cost Reports Job Cost System JOB COST CYCLE

20. Does your estimating system allow for proper Job Costing ? • Can your system break down the information for field measurement? • Is it detailed enough? • Can you track labor by function? • Can you track Equipment used? • Is it Consistent? • Can it be used for all project types? • Does it separate Direct & OH Costs? • Is profit a bid item?

21. Material AP Labor Payroll OH Recovered Bid Vs. Actual Equipment Profit Subcontractor Job Costing

22. Work daily completion. Labor • The only method I have found to ensure accurate and complete work daily information is to combine job costing and payroll information. • The foremen would fill out the work daily for the entire crew. • The information is then used both for payroll and job costing.

23. Most work daily formats have a time card table. • This is used to mark down the start and end times for each person on the crew. • Any hours not paid, such as lunch, are deducted from the total. • For example: • An employee starting at 7 a.m. and finishing at 5 p.m. with a 30 minute lunch deduction would list 9 1/2 hours.

24. The man hours are entered by operation code. • Adding up each employee’s time for each operation code would be the number of man-hours worked for the day. • These hours are exactly the same as payroll. Your employees become the best double check system for the accuracy of this information. • The information listed for each employee is then compared to the timecard section on the work daily. • These hours must match.

25. It is unrealistic to track most landscape construction operations in less than 15 minute increments. • For other operations such as maintenance or chemical applications, smaller increments may be feasible. • If the crew is working on multiple projects, a different work daily is used for each project. • If a crew visits multiple sites every day, such as a mowing crew, a different work daily format is used.

26. The work daily must be completed each day. • There is no way to know if the work daily is being completed each day unless it is handed in each day. • Do not let the foreman keep the work dailies until the payroll period ends or the project is completed. • The work daily should then be handed to a person with knowledge of the project for review. • This is usually the salesman or supervisor. • The work daily review should take place prior to the work daily being handed into the office.

27. The work daily must be completed at the project site. • The accuracy and completeness of the information will decline significantly if the work daily is completed at a later time off site.

29. Non Billable Hours • What is your % of non billable hours • Set up items as projects • Track OH items to measure time for: • Equipment maintenance, cleaning and repair • Facility maintenance • Inventory handling and maintenance • Meetings, Training, & Education • Punch-list & Repairs • Warranty not estimated or covered

30. Job Cost reports • Project Profit • Bid vs Actual • By project • By foreman • By customer type • OH by function • Estimate review

31. Job Costing Determines: • Most profitable job size range • Smallest / Largest project size • Crew size efficiency • Crew / Foreman strength & weakness • Project type by profit • Lead source by profit • Company Sweet Spot

32. Job Costing for Improved Efficiency & Incentive Programs • Determines profit by project. • By Sales person • By Foreman • By Supervisor • By Division Manager • Track Non Billable hours • Track Equipment Costs and use • Track Material efficiency • Track tardiness per employee • Set crews up for success.

33. Customer Communications: • This is a very common customer survey area or of weakness. • Pre-construction phase: • Changes to the schedule. • Preconstruction meeting. • Utility mark-out. • Finalize construction commencement date. • In progress phase: • Daily log e-mail or phone call. • Key project milestones. • On-site meetings. • 24 / 7 availability

34. Post construction phase: • Final walk-through with a client. • Punch list completion. • Warrantee completion. • Potential project issues. • Cross sell other divisional work. • Project maintenance requirements. • Billing. • Detailed invoices as per contract. • Daily function. • No change order surprises.

35. For smaller projects and service items, I would recommend a personal phone call. • Whenever possible the salesperson who should make this phone call. • A meeting with the client may not always be possible. • A letter or e-mail would be my last choice. • The letter or e-mail should be sent directly from the salesperson. • The project may have been small, but the referral may be large.

36. Manage 360 Demo: • Job Tab • Reports • Work order • Job log • Materials • PO • List • Billing and % completion • Analysis • Actuals • Timesheet Entry • Job Cost Report

37. Conclusion & Discussion Thank you for attending our “Landscape Job Costing and Project Management” Webinar Presented By : Marcus vandeVliet Consultant – MV Enterprises Phone: (302) 239-6612 marcusv@aol.com www.mventerprises.biz