Budget Updates
What two items must you bring to your budget update?
Procore budget and supervision projection.
True/False: EBCO's subcontract requires subs to be responsible for their own daily cleanup.
True.
How much retainage is typically held for a purchase order?
0%
Guaranteed Maximum Price
Who pays sales tax for a vendor providing services to a project, but not registered in the state where work is performed?
EBCO
True/False: If you have a contingency log, it is not necessary to bring to a budget update unless changes have been made.
False. A contingency log should be brought to every budget update - no excuses.
What is the traditional maximum contract amount for a short form contract?
$15,000*
*dependent on the scope
How is freight shown on a Purchase Order?
Freight costs should be broken out as a separate line item or it should specifically be noted as included. Freight should be a firm number and not an estimated amount. Freight IS taxable.
A101 and no they're different for various owners.
You're working on a commercial remodel project or new construction for a tax exempt entity, and go to buy a new power tool. Is this purchase taxable?
Yes. Sales tax is always paid on tools and incidentals that are not physically incorporated into the project.
If you're extending your schedule past your contractual time, even without an approved change order to extend time, you _________ extend your supervision projection
a) should
b) should not
a) should
Is a subcontractor bound to an owner contract to the same extent that EBCO is bound to it?
Yes.
How is sales tax shown on a Purchase Order?
Sales tax should always be broken out as a separate line item and the percentage rate and amount should be verified.
Where do you find information regarding who should be carrying the builders risk policy?
The owner contract qualification/clarifications exhibit, and the AIA Exhibit A Insurance document.
Is the first finish out of a tenant space taxable as a new build or as a renovation?
A new build. Any future finish outs will be taxed as a remodel.
What is the key to a successful budget update?
A) Updated Procore budget
B) Updated contingency and allowance logs
C) Current owner & sub change orders
D) All of the above
D) All of the above
First, issue a 3-day notice via email and certified mail. Contact the subcontractor. At the end of day 3, you must send a Supplement Letter.
*Don't rely solely on email correspondence. Phone communication should be part of this process.
True/False: When issuing a purchase order on a tax exempt job, it is not required to list a line item for tax on the PO Description table.
False. You should still have a line stating tax is not included and applicable resale certificate is attached.
Do you need to read an Owner Contract?
Yes. As a PM you need to understand a number of critical terms in an Owner Contract, including schedule, delays, and payment terms.
During a new build project there is a water leak that causes a significant amount of damage but EBCO/subs are going to pay for out of pocket without involving insurance. Would remodel tax rules apply to the rebuild and why or why not?
No. Remodel tax rules would not apply because it is all part of a new construction project.
Where would you look to find information on the current billing cycle of a rented forklift in order to project accurately?
Job Cost History - last invoice will show the billing cycle
True/False: EBCO's subcontracts are net 30 payment terms.
False. Payment terms are always paid when paid. *This is non-negotiable.
*Exceptions to be run through Michele
What does a Purchase Order provide to EBCO that a simple credit card purchase does not provide?
Insurance protection to EBCO if the materials are lost or damaged in transit.
What are the budget implications of a cost savings split in a GMP contract?
A portion of URG and other unspent funds will be returned to the Owner at completion of the project and this should be accounted for in budget updates.
Yes. Always break out remodel sales tax on each owner change order.