Project types available in Jobpac

Jobpac supports several different project contract types. Each type has its own settings in job maintenance and can use different processes for budgets and progress claims. This article gives an overview of the main project types and when they are used.

Project contract types in Jobpac

Project contracts in Jobpac can be set up using one of the following main types:

• Lump sum – a fixed price contract for an agreed scope of works.
• Schedule of rates – a contract based on an agreed list of items and rates.
• Cost plus – a contract where the client pays actual costs plus an agreed margin.
• Small order projects – projects where revenue is directed to cost centres rather than the project as a whole.

Note: property development projects are also available as an option in Jobpac, but should only be used when a consultant who understands this process is available to guide the setup.

Choosing the right project type helps ensure that budgeting, revenue recognition and progress claiming align with the contract structure.

Standard lump sum projects

Lump sum is the default project type if options for schedule of rates, small order or cost plus are not selected in job maintenance.

Key characteristics:

• the contract is for a fixed price and agreed scope of works
• changes to the original scope are handled as variations
• contract value, contract margin and contract budget can be entered in job maintenance, usually before the budget is finalised
• a work breakdown structure is created, cost centres are assigned and the budget is spread over cost centres

Lump sum projects can use facilities such as:

• earned budget, with options to use cost code sub items and cost centres only
• the standard progress claim module to set up a claim structure

This type is suitable when the scope and price are clearly defined and variations are the main mechanism for change.

Cost plus projects

Cost plus projects are used when the client agrees to pay the actual cost of the work plus an agreed percentage or fee.

Key setup points:

• in job maintenance, mark the project as a cost plus project
• enter a mark up percentage for transactions if required
• these settings are carried through to each cost centre created for the project

Cost plus projects operate in a similar way to lump sum projects for many processes, including:

• subcontracts
• purchase orders
• forecasting using standard forecasting tools

The main difference is in progress claiming. Cost plus projects use a dedicated cost plus progress claim process, accessed from the cost plus menu. Claims are usually built from the actual costs recorded on the project, such as timesheets, invoices, subcontract payments and journals.

Important: only mark a project as cost plus if you intend to use the cost plus progress claim process. If you are not using cost plus progress claims, treat the project as a standard lump sum project.

If a project is initially set up without the cost plus flag and cost centres are created, and you later change the project to cost plus, existing cost centres will not be automatically marked as cost plus. A utilities function can be used to update cost centres if needed.

Small order projects

Small order projects are used when revenue is directed to cost centres instead of to the project as a whole.

Key setup points:

• in job maintenance, tick the option to indicate a small order project
• set up an overarching small order job
• represent individual orders or activities using cost codes within that job

Important behaviour differences:

• for most project types, revenue is directed to the job number; for small order projects, revenue is directed to cost centres
• there is usually one cost type used for revenue on these projects
• overall contract value, project budget and margin are not entered in job maintenance; they are built up from cost centre budgets and revenue

Revenue controls for small order projects are managed in cost type validation and related setup screens. Accounting entries such as sundry accounts receivable invoices and revenue journals are posted to specific job and cost centre combinations for these projects.

Schedule of rates projects

Schedule of rates projects are used when the contract is based on an agreed list of items and associated rates, rather than a single lump sum amount.

Key setup points:

• in job maintenance, mark the project as a schedule of rates head contract
• contract value, overall budget and margin are not entered directly in job maintenance
• values are built up from item maintenance or uploaded schedules of rates

Processing for schedule of rates projects is significantly different from standard lump sum projects. They use:

• a different progress claim function
• a different forecasting function
• a different variation function

Warning: schedule of rates projects require additional configuration and training. Do not adopt this project type without appropriate guidance and understanding of the specialised processes.

Schedule of rates projects are best suited to contracts where work is measured and billed based on quantities and standard rates.

Choosing the right project type

When setting up a project in Jobpac, the project type influences how you:

• enter and manage budgets
• record and recognise revenue
• prepare and process progress claims
• report on project performance

Choosing the correct project type at the start helps ensure that Jobpac aligns with the contract structure, avoids rework and supports accurate reporting for both project teams and finance.