Progress Claims

Muli align the claim framework to the Head Contract structure when you have a fixed price or lump sum contract than you need to create a schedule of claimable components. Equal to the original contract value, PS the last item would be the value of prime cost and provisional sums.

This is them followed by the variation schedule showing the value of the highest state of each item: Ballpark,, Submitted, Approved, Claimed.

 

Note: Every claim includes a full variation summary including expected total payment at completion. This regular detailed contractual summary conveyed to the client makes very useful legal support document.

Progress Claims - By You and On You

With Progress Claims it works both ways.

Progress Claims you make on your client

Muli's Accounts Receivable enables Progress Claims to be made on your Lump Sum Contract projects and on your Cost Plus projects if you do Construction Project Management.

With Lump Sum Contracts, you create a Claim Schedule which is not a real breakdown just an acceptable group of figures that add up to the contract total.

To produce the claim you enter the values, a contingency amount if required and retention – although it's not in your interest to deduct money from your claims. Next Muli allows you to produce a worksheet rather than an invoice – so that you don't incur a GST liability too soon. Then when the client agrees to the claim you produce your Tax Invoice.

The Progress Claims include a full Variation Register so every claim becomes a contractual summary to the client and also has a forecast of the final contract value to assist the client in managing their obligations.

With Cost Plus projects the claim schedule is the Budget. It is recommended that Variations still be raised even though they are not required to adjust the Contract value but by having them, Muli will summarise the Variations on the Progress Claim so that the client has a record of the scope changing and won't misconstrue this as a failing on your part. 

There is usually no need for Retentions to be included on a progress claim for a Cost Plus project since the Client is taking the risk.

Progress Claims your Subcontractors make on You.

Muli requires you to create a Claims Schedule for each Subcontract. This ensures you are logically quantifying your payments which is an obligation under the Security of Payments Act but also servers to provide you with the Timing data so you can monitor project performance.

Each entry in the Schedule contains a sequence number, a concise description, the Stage (if stages are used in the project) the activity start and end dates and a percentage compete figure that is generated by Muli.

With Muli you can assist your Subcontractors be more professional by producing Proforma Pay Requests that give them a Contractual Summary plus space for them to enter their current claim amounts.

To process your subcontractors progress claims, you enter them into Muli's Incoming register so that Muli can monitor them in terms of your obligations under the Security of Payments Act and also to make the data available to the Project Review program so you can see the value in the “Unapproved column”. 

If you are not authorising an amount for payment then Muli allows you to enter a detailed reason or just select a standard reason from the choices offered which will print on the appropriate document - RCTI or Payment Advice.

Muli will calculate the correct Retention based on the rates stored against the individual subcontract and will apply the GST correctly.

To watch both type of Progess Claims being processed, go to our Demonstrations.

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