More Efficient Financial Control for Collaborative Construction projects

✓ Up-to-date Cost Information makes it easier to predict the final cost of construction project
✓ Procurement ties the budget, procurement packages, tender requests and contracts together
✓ Payment instalments are approved only after the delivery is ready and inspected
✓ Change needs are agreed together before order and delivery
✓ Suppliers' obligations and liabilities data, and the quality of deliveries are monitored

 

Main ZONE SIGHT functions

Construction Contract: PLM-Zone helps efficiently manage costs and change orders in construction contracts.

Cost Management

Procurement

Payment Approval: With Zone Sight, payment approvals are handled smoothly and transparently in collaborative projects.

Payment Management

Changes Management

Billing Authorization: PLM-Zone’s software automates billing authorizations and connects them to project cost tracking.

COST MANAGEMENT process & benefits

Budget

  • Create project and activity code structure

  • Import target costs

  • Activity code structure is updated

  • Maintain target costs

Committed Costs

  • Assign targets to activities

  • Packages are created

  • Do tendering

  • Define agreements

  • Committed costs are calculated

  • Activity code structure is updated

Actual Costs

  • Ledger data is received

  • Import special costs

  • Actual costs are calculated

  • Activity code structure is updated

Forecast

  • Review targets and actuals

  • Update cost estimates of activities

  • Approve project cost estimate

  • Cost history is updated

  • Report estimate to Project Owner

✓ Project costs are transparently visible to all parties according to their roles
✓ Commited costs reflect the progress of procurement
✓ Actual costs are updated regularly
✓ The final cost forecast is reviewed and reported to the Project Owner
✓ Cost history helps to understand financial changes during construction phase

Additional Work: Zone Sight makes the documentation and approval of additional work clear and manageable.

Procurement process & benefits

Prepare Packages

  • Assign targets to activities

  • Packages are formed

  • Split packages when necessary

Do Tendering

  • Select suppliers for tendering

    Prepare request for quotations

  • Compare quotations

  • Make decisions

Purchase from Suppliers

  • Create agreements

  • Define installments

  • Define unit prices and quantities

  • Committed costs are updated to activities

✓ Ties target costs, activity codes and procurement packages together
✓ Consistent way to manage the RFQ process
✓ Transforms purchases to committed costs
✓ Maintains supplier compliance status
✓ Enables evaluation of suppliers and their deliveries

Change Order: Construction project change orders are controlled through centralized data in Zone Sight.

payment management process & benefits

Request for Approval

  • Deliver work package

  • Send installment for approval

Review Delivery

  • Inspect delivery at jobsite

  • Review invoicability

  • Review agreement

Authorize to Invoice

  • Approve installment

  • Attach approval note to invoice

  • Send invoice

Review Invoice

  • Check invoice content

  • Allocate invoice to installment

  • Mark installment as invoiced

✓ All approvals are documented
✓ Parties share the same information
✓ Project closeout becomes more straighforward process
✓ Fewer credit notes
✓ Less unnecessary email traffic

Scope Change: Zone Sight enables real-time control and tracking of the impact of scope changes.

change management process & benefits

Propose Change

  • Define need for change

  • Add quotation with specifications

  • Request for change order

Review

  • Review change proposal

  • Check for appropriateness

  • Order and create installment

Deliver

  • Deliver work package

  • Request for installment approval

✓ All change requests are reported in timely manner
✓ Impact to costs and schedule is clearly undestood
✓ Changes are reviewed and ordered before work begins
✓ Project closeout becomes more straighforward process
✓ Less email traffic

Cost Index: PLM-Zone takes cost indices into account in project forecasting and budgeting.