Progress Claim Concepts and Terms

CivilPro’s Claims Are Project TO DATE

This means each claim is for the total value of works completed to date NOT the quantity of work done in the reporting period.

CivilPro uses Claim-To-Date because it is:

1. the industry standard.
2. based on the approved amount of work completed that is agreed between the contractor and the client, so that claims and payments can be easily reconciled

The Relationships between Schedule Items, Quantities and Progress Claims in CivilPro. 

The general workflow that links Schedule Items, Quantities and Progress Claims for a Lot-based claim goes like this :

• Schedule Items are set up at the start of your project and list the types of activities that are to be completed under the project.
• Each of the Schedule Items is linked to a Work Lot via creating new Quantities. This can be done via the Lot Register or the Quantities Register.  
• When you create a new Progress Claim, it makes a copy of the Schedule at that point in time.

How are the Claim Quantities determined?

  The quantities for your claim can be determined in 3 different ways:

1. calculated automatically from the Lot Quantities associated with your QA records (QA backed Progress Claim)
2. entered directly
3. copied from the previous Claim and then updated manually

How QA Backed ( or Lot-based) Progress Claim works?

Where Lot Quantities are used, each individual Lot Quantity is statused as of the cut-off date. You can specify which statuses are included in your Progress Claim i.e. Open, Guaranteed and/or Conformed Lots.

In addition, CivilPro can calculate the amount claimed for each item in a reporting period. It does this automatically by deducting the Certified Value for each item in the previous Claim from the Claimed Value in the current claim.  CivilPro’s claims are project TO DATE

Effective Quantity

When CivilPro creates a snapshot, it uses the Effective Quantity. The Effective Quantity is calculated using several properties of the Lot Quantity record and the Lot record as detailed below. This calculation differs for Lots of different status.

Open Lots

Effective Qty = [lot quantity] * [lot % complete] * [lot qty % complete] * [reduced payment factor] * [non-claimable]

Default values

Lot % complete = 0%

Lot qty % complete = 100%

Reduced Payment Factor = 100%

Non-claimable = 1

Conformed and Guaranteed Lots

Effective Qty = [lot quantity] * [reduced payment factor] * [non-claimable]

Rejected Lots

Lot Quantities for Lots that have been rejected will be included in snapshots if the rejection date is after the cutoff date.

Understanding the Progress Claim terms

You will come across many terms as you start the process of making your progress claim. We’ll cover them in this section:

Schedule Items can have either a Fixed Rate or Variable Rate, and they can  also be Not Claimed or Claimed.  

By default, all items are Fixed Rate and Claimed, unless set otherwise.

You can tell the type of a claim item by the colour of their cells on the register:

	Fixed Rate	Variable Rate
Claimed	White	Blue
Not Claimed	Green	Yellow

Fixed rate schedule items

Schedule Items in Civil Pro are normally fixed rate and this is the default. This means that from one claim to the next, the only thing that changes is the quantity. You cannot edit any of the rates for a fixed rate schedule item:

• Value to Date = Qty to Date * Original Schedule Item Rate
• Value for September = (Qty to date September – Qty to date August) * Original Schedule Item Rate

Variable rate schedule items

Generally, the reason a Schedule Item is variable rate is because it is a lump sum variation. Consider the following:

• A Variation is registered for (example) construction of a private access in July – it is performed on Dayworks and is partially complete at the end of August. The accumulated charge to the client at that time is 1 x lump sum at $3,500.
• During September, additional work is done to a value of $5,500 total. The quantity remains 1 x lump sum, however the rate has changed and is now 1 x lump sum at $5,500.

Claimed Items

A Claimed Item is a normal Schedule Item that has a sell rate and is included in a Progress Claim. If you are using Civil Pro for budgeting, then it will also have a DJC rate. A Schedule Pay Item can be fixed or variable rate. Claimed Items are included in the printed report.

Not Claimed Items

An unclaimed Schedule Item is an item that is included in the construction schedule for the purposes of the user’s internal financial reporting. It is not included on Progress Claims to the client. The most common use for an unclaimed Schedule Item is to account for overheads e.g. an item with $0 sell rate, but with a budget rate. A Schedule Overhead Item is usually a fixed rate, but can also be a variable rate.

 Understanding Quantities

The Progress Claim detail is basically a copy of the schedule with additional information regarding quantities of work completed, and optionally quantities certified and forecast. From this information CivilPro calculates values for each Schedule Item and sums them to generate the overall Progress Claim values.

A basic Progress Claim requires only the addition of quantities of work completed to date.

If you use Civil Pro’s financial module to its full capacity then updating the following quantities will allow periodic reporting, adjustments for earned value and forecast project at completion valuation:

• Quantity to Date (QTD)
  • multiplied by the sell rate to provide the value for each schedule item Value = QTD * Sell Rate
  • multiplied by the Direct Job Cost (DJC) rate to provide the budget for each item Budget = QTD * DJC Rate
• Certified Quantity
  • provides the option to switch reports and summaries to utilise the value certified by the client, rather than the amount claimed
  • necessary for the calculation of budget and revenue in the subsequent reporting period as Periodic Qty (this claim) = Quantity to date – Previous certified qty
• Over/Under Qty (OU Qty)
  • allows the adjustment of the claimed quantity to reflect the work actually completed where it differs from the work claimed
  • necessary for the calculation of earned budget Earned budget = (QTD – OU Qty) * DJC Rate
• Quantity at Completion (QAC)
  • used to calculate the forecast value of the project – supports adjustments due to quantity variance and provisional item adjustments Revenue at completion = QAC * Sell Rate Budget at completion = QAC * DJC Rate