Construction Project Management Software Features - Prime Contracts

When it comes to comprehensive construction job costing, a solution must be able to handle both Prime Contracts and Subcontracts including the changes that occur and invoicing. In Corecon, a Prime Contract is always a contract between the customer and one’s own firm. Depending on the type of firm or construction, there can also be multiple prime contracts for a given job (see table below).

If you compare Corecon’s Contract Administration functions in relation to construction accounting systems on the market, Corecon better reflects the real world construction business process. For example, a firm should never issue POs and Subcontracts unless the Prime Contract is approved and signed. Corecon follows this logic. From a budgeting standpoint, cost, revenue, and labor hours should be setup by Job Cost Code at the Prime Contract level not at the Project level. The benefit being financial reporting and analysis can be done at 3 levels: Project, Prime Contract, or Job Cost Code. Corecon also offers for both Prime Contracts and Subcontracts four types of contracts (fixed lump sum, cost plus with or without a guaranteed maximum price, and unit price) and the ability to document the scope of work including inclusions and exclusions.

Examples of Prime Contracts Based on Company Type

Type of Company	Prime Contract #	Purpose
Home Builder	001	Lot 1 - Customer 1 / Home Builder
	002	Lot 2 - Customer 2 / Home Builder
	003	Lot 3 - Customer 3 / Home Builder
Design-Build Firm	001	Design Phase - Owner / Design-Build Firm
	002	Construction Phase - Owner / Design-Build Firm
Owner or CM Firm	001	Owner / Architect
	002	Owner / CM
	003	Owner / GC
	004	Owner / Consultant
General Contractor	001	Construction Phase - Owner / GC
Subcontractor	001	Construction Phase - GC / Subcontractor