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Introduction to Intuit® Master Builder®

Leslie C. ShinerOwner, PrincipalThe ShinerGroupSenior Industry Advisor, ConstructionIntuit Construction Business Solutions

The International Builders’ Show

Orlando, FLJanuary 11, 2005

Objectives

• Moving from Microsoft® Excel and/or Intuit® QuickBooks estimating to the integrated estimating of Intuit Master Builder

• Explore flow of job, from start to finish in Master Builder

• Understand computerized project management

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Goals

• Session goals:– To introduce the Intuit Master Builder program– To discuss computerized project management

• Your 2 most important goals:• ________________________• ________________________

• What software do you use now?– Estimating– Project Management– Accounting

3 Steps for Computerized Management

1. Understand the Master Builder estimating

2. Understand the flow of a project from estimating to close-out in Master Builder

3. Review the vital job cost and project management reports in Master Builder

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Estimate with full detailBased on parts

Budget Based on cost codes

Actual Job CostsBased on cost codes

Schedule

PurchaseOrders

Subcontracts

ChangeOrders

Bid Request

Proposal

A/P

Payroll

GeneralLedger

Billings

Fully Integrated Program

Estimating in Master Builder

• Can be treated like a spreadsheet• Cost types shown per line• Labor productivity can be associated • Overhead and Profit can be assigned in 3

ways: columns, bid items or line items• Other “goodies” with huge impact:

– Vendors– Tasks

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From Simple to Complex

Com

plex

ity

Valuable Output, Repetitive Estimates, Measurable Results

Spreadsheet

Parts Database

Assemblies

Formulas

Steps for New Job – Simple Estimate

1. Set up the job2. Begin the estimate

Enter several lines (like spreadsheet)3. Add the markup4. Access the database to add a part

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1 – Set up the Job

• Set up a job:– Click on the Master Builder icon– Enter “supervisor” as the user name – no

password– Click on Menu Option #3 – Accounts

Receivable– Click on Sub-Menu Option #5 – Jobs

Create a Job

• Enter a job:– #221– Short Name: Shiner Remodel – Job Name: Shiner Remodel– Estimator: #7– Job Status: bid– Plans Received: 1/10/06– Save: click the diskette icon– Close window

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2 – Begin the Estimate:

• Go to Menu Option 9-5: Estimating takeoffs; enter job #221 in the Takeoff Launch window

• The Takeoff window opens

• Let’s begin our estimate…

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Enter Four Lines

Enter the following:

2,000.001Subcontracts

500.001Equipment

5,000.001Material

48.5070Labor

CostQuantityDescription

Similar to a Spreadsheet

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3 – Now Add the Markup

• Click on Bid Summary Tab• Click on Apply Markup to Ext Price• Add 40% Markup• What is the total Bid Price?

$15,253

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4 – Access the Database to Add Part

• Click on the Takeoff Details Tab• Click in a part cell• Type “sky*”• Hit the F4 key• Find and enter the 2'x4' Skylight• Add quantity = 1• Save again• Review the price

Spreadsheet With Database

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Using a Template – The Process

1. Set up the job2. Begin the estimate

a. Import a templateb. Update the pricesc. Adjust the quantitiesd. Add other information

3. Enter the markup or margin

The Value of a Template

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The Power of a Database

Components of Takeoff Screen:

• Bid Items – table of contents of the entire estimate• Assemblies – unit based pricing matrix• Parts – individual pieces, as large or small as you wish• Description – for reporting• Cost – hard cost (not marked up cost)• Overhead and profit rates – attached by line item• Vendor – to produce Subcontracts & POs• Cost Code – to produce budget to compare to actual $• Cost Type – to differentiate between types of costs • Task – to produce a schedule and verify time

commitment

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Let’s Look at an Existing Estimate

• Click on File, New• Pull up Job #220• Click on Recap

Review Estimate Again:

• Click on the “Takeoff Details – Recap” tab again and select:– Cost Codes– Cost Types– Vendors– Tasks

• When we’re satisfied with our estimate, we export it for project management

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The Estimate as Just a Starting Point!

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Create a Budget and Proposal

• Exporting into the project management area of Master Builder allows us to control the project:– Click “export” and choose:

• Budget• Proposal

• Go to Budgets at 6-2 and pull up the last budget in the file: what is the total?

• Go to Proposals at 6-9 and pull up the last proposal in the file: what is the total?

• What is the difference?

Know Your Overhead

Direct Job Costs

LaborMaterials

SubcontractsEquipment

OverheadProfit

Non-negotiable without change of scope

Negotiable

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Better Manage the Job

• Scheduling• Labor• Procurement• Subcontracts• Change Orders• Documentation and Reporting

Approve a Change Order

• Go to 6-4-1 and pull up record #9– Change Order for Job #220– Change status to Approve– Notice the two tabs– How much will it increase the budget?– How much will it increase the contact?– Save

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Change Orders – to Budget and Bid

Cost Reports

• A big part of controlling the job consists of continuous monitoring through reports

• Master Builder contains many powerful reports

• We’re going to look at the “workhorses” of project management from 3 points of view:– Job costs vs. budgets in summary– Detail job cost report– Committed cost report

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Job Summary Report

• Go to 6-1-4-21: Job Summary Report • Job #220• Check box to “Subtotal by Division”

Start with Job Cost Summary

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Need Detail? Job Cost Journal Report

• Go to 6-1-2-47: Job Cost Journal• Job #220, Cost Code 2200

Job Cost Journal Report

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Committed Cost Report – the Key!

• Go to 6-1-12-31: Committed Costs• Job #220• Enter 40% as labor burden

Committed Cost Report

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Others to Explore Later – Just to Name a Few

• Per Job– Cost to complete– Hours to complete– Job labor journal– Job status report– Committed budget/cost variance

• Overall– Over/underbilling report– Job cost totals report– Bonding report

Don’t Forget About the Billing

• Prime Contract Audit (6-4-6: Job 207)– Contract amount– Approved change orders– Amounts invoiced to client

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Prime Contract Audit

Other Audits and Warnings:

• Subcontract Audit (6-7-4)– In detail or in summary– Prior to close of job – watch out for unbilled costs

• Purchase Order Audit (6-6-3)• Workers Comp Warnings

– When creating contract– When entering A/P invoice– When cutting check

• Overbudget warnings (if you want)– When entering costs to jobs

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Understand the Profit Cycle

Leslie C. Shiner, MBACertified Master Builder Master TrainerCertified Master Builder Master Trainer

Owner/ PrincipalThe ShinerGroup

Senior Industry Advisor, ConstructionIntuit Construction Business Solutions

L_Shiner@Intuit.com(415) 383-6255

Questions and Thank You

•Estimating•Project Management•Service Receivables•Report Writer