Free issue to subcontractors and material reconciliation
Mark material given free to a subcontractor as free issue. Then compare, per project and material, what the BOM needs with what was requested and issued, so wastage shows up.
PLANSFrom Growth
The problem it solves
- Steel and cement go to the subcontractor's gang, and at the final bill nobody can say how much.
- Wastage is found when the stock runs out early.
- The BOM says one thing and the store issues another, and nobody compares them.
How it works
- When material goes to a subcontractor, make a Material Issue, choose them under Issued To and switch on Free Issue.
- Press Issue. The stock leaves the site store and the issue is fixed.
- Open Construction > Projects > Reporting > Material Reconciliation. Each material of each project shows needed by the BOM, requested, issued, of which free issue, and % issued of need.
- Use the filter Issued More than Needed. A line above 100 % is wastage, theft or a BOM that is wrong.
- Where a subcontractor used more than agreed, add a back-charge on their next running bill.
Everything it does
Free issue
- A switch on the material issue, shown once a subcontractor is named
- The issue lists by Issued To; filter Free Issue
- Each issue line has a place and a cost code
- Issues can be made in the app, also without signal
Material Reconciliation
- Per project and material, in the material's own unit
- Needed: from the BOM's material requirement
- Requested: material requests not rejected
- Issued: issues done; Of Which Free Issue: those marked free issue
- % Issued of Need, red above 100 %
- Grouped by project to start with; filter Issued More than Needed
What it does not do yet
- The reconciliation is per project and material, not per subcontractor
- Theoretical use from certified measurements is not worked out; the subcontractor's share is read from the issues by Issued To
- Excess use is not charged by itself; you type it as a back-charge on the running bill
Who uses it
Storekeeper or site engineerIssues material to subcontractors and marks it free issue.
Quantity surveyorReads the reconciliation, checks the issues of a subcontractor, and raises back-charges.
Construction ManagerFollows wastage across projects and fixes the BOM where it is wrong.
Where you use it
- Web: Construction > Site > Material > Material Issues
- Web: Construction > Projects > Reporting > Material Reconciliation and Material Used
- The SmartMy Construction app: issue material with free issue (built and in testing, not in the app stores yet)
- Not on the subcontractor portal: subcontractors do not see the material issued to them
What you control
Settings
- The BOM per unit of work and the project's requirement give the Needed column
- Free Issue per issue
Approvals
- Material issues are not approved; requests go through Site Material Request
Questions
Can we see how much cement went to one subcontractor?
Yes, from Material Issues grouped by Issued To with the Free Issue filter, or Material Used. The reconciliation report itself is per project and material.Is excess material charged to the subcontractor by itself?
No. Type the charge as a back-charge on their next running bill. Back-charges are taken off the net to pay and go into the vendor bill.What is compared with what?
What the BOM says the work needs, what was requested and what was issued, all in the material's own unit. Issued above needed shows as more than 100 %.Related features
MONEYMaterial requests, orders, transfers and issuesSite staff ask for material from the site or the app, and a manager approves. The request becomes a purchase order to the site store or a transfer from another site. What arrives is issued to the work, a place or a subcontractor. Every order carries the project, cost code and place.ESTIMATINGBOM per unit of work and material requirementSay once what one unit of work takes, such as 1 m³ of M20 concrete or 1 m² of 230 mm brick wall. Give a wastage % per material. Name the BOM on each BOQ item, and the project's material requirement follows: cement, sand, steel and bricks by place and month.MONEYWork orders and subcontractor billsA work order to each subcontractor with items, rates and terms, approved before work starts. Running bills come from certified measurements. They take off retention, advance, back-charges and TDS, and become the vendor bill.MONEYMeasurement book, retention and advancesSite staff measure each item's work by place, as Nos. x length x breadth x depth with photos; a manager certifies it, and only certified quantities reach the running bill. Retention is kept from every bill and released in one step, and the mobilisation advance is recovered bill by bill.PORTAL AND APPThe SmartMy Construction app, also offlineOne app for Android and iPhone for the people on site. It has today's site report with photos, the muster roll and check-in, snags and inspections. It also has material requests and issues, measurements, plant log sheets and safety. What is entered without signal is kept on the phone and sent when the signal is back. Clients, subcontractors and buyers use the same app for their own pages.
See your next site report on it.
Tell us what you build, how many sites you run and how your client hears about progress today. We will set up a project with you and send your first daily update.