equipment and materials modules: why you need them
DESCRIPTION
TRANSCRIPT
1
Equipment & Materials Modules:Why You Need Them
2
The Approach
Materials Module
Equipment Module
Questions & Answers
3
Let’s Get Started
How Many of You Use
the Materials Module?
4
Materials Basics (Two Types)
Receipt Required• The contractor allocates materials costs but
since they are variable there needs to be documented back up
Rate Defined• Rates pre-defined for specific materials
allowing allocation ONLY for that amount.
5
Materials BasicsRate Defined
Pro• Controls locked in for
materials with negotiated rates such as project consumables
Con• Where costs vary money
could be lost if the material was purchased at a lower rate
• Does not work well for one-time purchases
6
Materials Basics
Receipt Required• The contractor allocates materials costs but
since they are variable there needs to be documented back up
• Attach a PDF of the receipt for allocation
The Track advantage can best be described by examining the “receipt required” work flow
PurchaseDocumentation
7
Materials - “the old way”
ContractorPurchased
Material
RequestorSign Off
On Receipt
A/PProcessing for Payment
PurchaseDocumentation Purchase
Documentation
ContractorInvoice
8
Materials - “the old way”
A/PProcessing for Payment
PurchaseDocumentation
The Problems –• Time delays• Split deliveries• Filing systems / retention losses• Internal paper flow
PurchaseDocumentation
9
Materials - “Receipt Required”
ContractorPurchased
Material
RequestorSign Off
On Receipt
A/PProcessing for Payment
ContractorAllocation
PurchaseDocumentation
Attachment
Approval
PurchaseDocumentation
Attachment
10
Next…
How Many of You Use
the Equipment Module?
11
Equipment
The Equipment Module offers two significant benefits
And one not often recognizedcontract bidding and management
One easily recognized work execution
12
Equipment Module Rate Options
Hourly & Daily• Hourly rate with or without idle rate• Hourly rate with daily max with or without idle rate• Daily flat rate
Base / Over, Weekly / Monthly Rate• Hourly rate for base hours + over rate with or without idle rate• Weekly maximum hours with or without idle rate• Monthly maximum with or without idle rate
13
Equipment Module Benefits
Work Execution• Near time review (next day allocation) allows company
personnel the ability to closely link billing to actual work in the field
• Error free charging, rates are locked in the system • Track automatically adjusts when hour threshold (daily,
weekly or monthly) is reached• Simplified ability to compare equipment billing rates for a
piece of equipment across multiple vendors • Internal resource re-deployment (A/P clerks to Track)
14
Equipment Module BenefitsContractual (Bid and Bid Award)• The owner defines the rate structure to optimize their cost
advantage• Using Track’s format enables a consistent bidding process • The owner is able to introduce a standard set of equipment
bidding variables• Standardized equipment definitions enables ease of
comparison • Error free input with owner’s sign off as a controlling factor• Successful bidder’s rates are locked in
Conclusion
15
Labor – Equipment - Material
Three parts of the comprehensive Track deliverables
16