Construction Items

Setup and The Basics

You should consider Construction Items as three different types of items. They share many elements however, the creation of each should be approached from a different angle.

Construction Item Type	Purpose
Base Contract	Used in the intial Home Construction process
Lot Selection Packages (Color Chart)	For Lot Selection Packages (color chart)
After Sales	To handle warranty claims and deficiencies

As with any data in Dynamics BC you can import Construction Items, however there are labor saving copy routines built right into Construction Items. In real terms, this means that it is often most efficient to create an intial item in it's entirity, and then use the copy function to create similar items.

Once you have created the Items, you must push (with an automatic process) to Models and Phases. Once added to Models and Phases you control the vendors, contracts, pricing etc. These items eventually create the Lot Planning Lines from which all budgeting and scheduling is handled.

You do not need to do all these functions e.g., scheduling or even budgeting or setting up Vendor Contracts but it is still important to create Construction Items and push them through Models and Phases in order that the Lot functionality works correctly.

The Construction Item represents a type of deliverable that should be constructed, installed, or completed on a Lot. It also represents a change or credit related to a Lot. The examples of Construction Item are Kitchen Cabinet, Countertop, Electrical Socket, Roof Tiling, After Sales Service Inspection.

Note

Technical note: Construction Items use the table “Item” from Business Central. The Item records used in Construction Items all have the Type “Service”. This is a local table, i.e., Construction Items are specific for a Company.

Before You Start - System Tables that Must be Filled in:

Before you create Construction Items make sure have the following in place. Use our demo environment to give you suggestions about what to enter to each table.

Mandatory Setups

• HomeBuilder Setup
• Workflow Template (minimum of one)
• Workflow Template Task (minimum of one)
• Construction Item Category
• Item Cat. House Area
• Measurement Types
• House Areas + sub tables:
  • House Area Measurement
  • Applicable Checklist Items (used for PDI)

Optional Setups

• Key Date Category
• Key Dates
• Key Date Templates
  • Key Date Template Item

Before You Start - How Many (Base Contract) Construction Items Should I Setup?

Different companies and different construction projects require different Construction Items. The following are suggestions to get you started. You should expect to keep the list of Construction Items updated as you learn more about what the software offers.

Tip

Get hold of all the Vendor Contracts or previous invoices from vendors.

You will want to create one “Base Contract” “Construction Item” (also know as “Base Contract Item”) per charge that you want to measure.

Items can be work (labor) or materials. Typical examples are “Lumber for framing”, “Framing - First Floor” or “Footings – Concrete”.

Your vendors may invoice you many lines for items that you do not care to measure e.g., Recepticals, Switches, Cabling. You may choose to just have one Item called "Electrical".

What is the End Product of your Item Setups?

• After the Item creation process you will end up with the same item in three places:
  • Base Contract Item – for use with any Phase, Model, and eventually the Lot as you need
    • Note: this is where all the manual setup is. The creation of the Model and Phase Items is largely automated
  • Phase Item (for base contract items) – this where you indicate which contractor will perform the work or supply the materials.
  • Model Item (for base contract items) – where you generally control the costs and is also a subset of the Items used to build the home – this is eventually used to create the Planning Lines on the Lot and is covered later in this document.

Basic Setup Suggestions

Note

The Base Contract Items are generally much simpler than color chart items. If and when you build Color Chart items you may add to the setups that are suggested here.

The list of suggestions below is just the minimum to get you started. Review the demo database for more suggestions.

• In this Base Contract Item, you will setup the following things:
  • No. - There are three standard options; the choice is best made when thinking about what matters to you most. Below are some guidelines (see the demo database for examples) and if you want to read more - Google-Search
    • Just a dumb number e.g. start at 10000 and let the system choose the next number. Quick for data entry, you rely on the description to find the item, this is normally fine and is generally a good system when you have hundreds of items.
    • A number with "intelligence" e.g. 10-100 where "10" = Electrical and "-100" = Rough-in. Once you have learned the sequence data entry is often easier, another advantage is that the items are sorted in the way you want. The trouble with this is sometimes there are not enough codes in the sequence and sometimes meanings change. (Avoid using a dash (-), it is in the sample to make a point but dashes slow down data entry)
    • A name e.g. "ELEC-ROUGH" - easy to recognize, slow in data entry. Nice to start with, gets annoying after time.
  • Name - use something that instantly let's you know what this is such as "Drywall Installation", "Electrical Rough-in" etc.
  • Item Category Code (Construction Item Categories) – keep this simple, it is just used to make listing items on the screen easier.
  • Cost Detail Code – Select from List (this is the basis for most reporting)
  • Base Unit of Measure – nearly always EACH (or PCS). Sq, Ft. or Sq. M. can be used on occasion.
  • Base Contract – Yes
  • WF Template Code – Construction
  • WF Template Task No. – All
  • Cost Scope – Per Model (is the most commonly chosen, Universal is for when charges are the same irrespective of the model chosen)
  • Gen. Prod. Posting Group – Construction
  • Tax Group Code – Taxable
  • Take the defaults that the system gives for the following unless you are sure you want to change them:
    • Available – Yes
    • Blocked – No
    • Designation – Single Item
    • Variants Required – No
    • Deliverable – Yes
    • Color Chart – No
    • Unit Cost – zero (it is defined later)
    • Pricing Method – Item
    • Costing Method – FIFO
    • Revenue Detail Code – leave blank for Base Contract Items
  • The Phase Items hold shared setups for all Models in this Phase. This includes the following:
    • Vendor No.
    • Vendor Contract No.
    • Unit Cost (for Cost Scope – “Universal”, otherwise per Model Item)
  • In the Model Item, you add the following things to the setup already done on the Base Contract Item – the following describes a standard “simple” setup. You can make this more complicated for full control, but most people keep it simple.
    • Unit Cost (for Cost Scope – “Per Model/HA”, otherwise per Phase Item) Automatically Create the Phase and Model Items from the Construction Item

Tip

House Areas are automatically taken from the Construction Item Categories which is great if you have setup a good list.

Don't worry about setting up too much when you are just starting out with Base Contract Construction Items. Many people just create and use a House Area called "ALL". The full list is only really useful when you get into Color Charts.

How to Create Model and Phase Items from your Construction Items

• Once you have created these Base Contract Items you will select all the Items that belong on specific Models and click on “Actions” – “Push to Models”. A list of Models is presented to you, select the Model/s that you want and click on the button “Push Items”. This action will create both Model Items and Phase Items.
  • Notes:
    • There are other ways to create Model Items and Phase Items however the process described above is the recommended method, other methods may end up missing setup.
    • You can repeat this process as often as you like; the system will just overwrite the Phase and Model Items with the current Construction Item setup.

Field Definitions for Construction Items

• Available
  • When Yes, the Item can be added to Phases and Models.
• Designation
  • Every Item has one of the following designations:
    • Single Item
    • Bundle
    • Component
    • Customer Fee
    • After-sales Service

Single Item is the item which can be purchased from a single Vendor and installed (delivered to) on a Lot. The examples of single items are Carpet, Roof, Hardwood Floor, Drywall.

Bundle is an item which requires input from multiple Vendors. For example, a Fireplace may require gas supply, electrical wiring, and installation of the fireplace itself.

Component is the item which can be used as a part of one or more bundles. The examples of component items are Gas Supply for Fireplace, Fireplace Wiring, and Fireplace Installation.

Customer Fee is an Item which allows for charging or crediting a home buyer. It has relation to any purchases.

Warning

The Customer Fee is the only Designation that cannot be purchased. Do not use this if you are ever potentially going to have to purchase the Item.

After-sales is an Item which is to be used for warranty fixes during after-sales service. After-sales items have zero Unit Cost.

• Has Components
  • Indicates if the Item has components. Only Item with Designation 'Bundle' may have component.
• Variants Required
  • Indicates if the Item requires Variants

Tip

A classic example of Items that require Variants is hardwood flooring. There are many species of hardwood that cost differing amounts and are different colors. In the end, they are all used to be a floor.

• Default Variant Code
  • Choose the Deafult Variant code e.g., for Color Chart selection.
  • This value is optional.
• Base Contract
  • Defines if the Item to be part of base contract with a Vendor.
  • If 'Base Contract' is set to 'Yes' then the Item will be become a Job Planning Line when you perform the action "Site Model on Lot".
• Deliverable
  • Defines if the Item can be installed/delivered. This is informational only
• Color Chart
  • Defines if the Item should be a part of Lot Selection Package (Color Chart).
  • The color chart item can be released for construction only after Lot Selection Package with this item has been released.
  • If an Item is a Base Contract item, the value of "Color Chart" cannot be "No".
• Default Usage
  • Defines how the Item is to be used by default: Standard, Extra, or Upgrade. An Item can have default usage Upgrade or Extra only if the "Color Chart" is set to "Yes".

Note

There is no difference in functionality between "Extra" or "Upgrade".

The two options are provided in order that the Home Builder can choose the language that best suits their needs.

• Workflow Template Code
  • This field is used for selecting Workflow Template Task No. associated with the Item.
• Workflow Template Task No.
  • When the Job Planning Line in created (Site Model on Lot), the Job Task No. is taken from this field.

Note

Workflows have multiple purposes as listed below:

1. Mandatory field in Dynamics BC.

2. To build a work flow of the construction process including durations of tasks and the ability to mark tasks as complete.

3. If the above is done, the "Get Planning Lines" function on the Purchase Invoice can be setup to only bring in tasks that are currently marked as completed.

4. Used to build the "fine warning" page. A useful page that allows the user to track when they must warn the purchaser of any delays and avoid any late fines.

Tip

If you have no use for the multiple purposes described above, just create one Workflow Template Code and one Workflow Template Task No. to fulfil the requirement that one must be entered to all Items.

• Color Chart Note
  • The note that should be printed for this item in Color Chart report for a home purchaser.
• Show Note to Vendor
  • Indicates if the Color Chart Note should be shown for a Vendor in Work Order or Purchase Order for Extras.
• Instruction
  • The note with instructions for a Vendor which is to be shown in a Work Order.
• Cost Scope
  • Each Item has a cost scope which is either Universal or Per Model/HA (Per Model/House Area).

Universal Cost Scope If the cost scope is Universal, it means that Unit Cost and Unit Price of the Item and of its Variants are the same for the whole Phase, not matter where the Item will be installed (delivered).

Tip

Classic examples of universal Cost Scope are "Inspections" or "Tiling" when paying by area (sq ft. or sq M.)

Per Model/HA Cost Scope If the cost scope is Per Model/HA, it means that Unit Cost and Unit Price of the Item and of its Variants will be defined for specific House Areas in specific Models.

Tip

Most items are priced per Model/HA. If you have negotiated a price to pour a foundation or frame a room, it is likely different for each model.

• Cost per Variant
  • When "Yes" then Item Variants may have individual "Unit Cost" and "Unit Price". When "No" then Item Variants inherit "Unit Cost" and "Unit Price" from the Item.

Tip

In the earlier example of hardwood flooring having variants, it is most likely that you will need to cost and price per Variant, this is where you allow for this

• Markup
  • Defines ratio Price to Cost. On changing Markup, field "Profit %" and "Unit Price" will be re-calculated. For Designations other than 'Single Item' or 'Bundle' this value is always 0.0.
• Use Component Prices
  • This field is applicable only for Items with Designation 'Bundle' and Variants Required equal to 'No'. When it is changed to 'Yes', the Unit Price will be calculated using Unit Prices defined in BOM Components of the bundle.
• Is Credit
  • Indicates if the item represents a credit for a vendor or for homebuyer. When the Item will be instantiated in form of Job Planning Line, the "Unit Cost" (or respectively "Unit Price") in the Job Planning Line will have negative value. This field is applicable only for items with Designation 'Single Item' or 'Customer Fee'.
• Pricing Method
  • Defines the method for determining the quantity of an Item that should be installed (delivered) in a House Area of a Lot. The Pricing Method has two options:
    • Item
    • Measurement

Pricing Method - Item

The Quantity is always 1.

Pricing Method - Measurement

The Quantity will be assigned with the certain measurement of the House Area, such as floor area, backsplash area, shower floor area, perimeter. The type of measurement is determined by Measurement Type Code.

• Measurement Type Code

  • Defines type of measurement to be used for Pricing Method 'Measurement'.

• Cost Detail Code (See Cost Detail Code help file)

  • Cost code for purchases.

• Revenue Detail Code (See Cost Detail Code help file)

  • Cost code for sales.

• The Construction Item page has the following actions:

  • House Areas
  • Variants
  • Components
  • Push to Models
  • Validate Selected
  • Actions
    • Copy to new Item
    • Assign Workflow Task
    • Copy from another Company
    • Set Markup
    • Copy to Global Catalogue
  • Related
    • Where-Used

• The "Construction Item Card" has a fact box where a user can upload the picture of the item. This picture can be shown during selection of upgrades and extras in page "Lot Selection Choices".