WHO OWNS WHAT

Who owns
each task

73 tasks in 10 phases, from choosing the cost codes to closing the project. Each one lists the role that owns it, what it needs and what it produces.

PICK A ROLE

See what one role owns

Pick a role and the page keeps only its tasks. A task owned by more than one role appears under each of them.

73 OF 73 TASKS

Leadership. The executives and the owner.
Ops management. The ops manager and operations management.
Estimating. Estimators and preconstruction.
Field team. Foremen, journeymen and the crews.
Accounting team. AP, AR, bookkeeping and the controller.
Someone with signing authority. A person with the legal ability to sign for the company.
Client side. The owner, the architect, the engineer and the general contractor.
Whoever fits the company. Some tasks go to whoever fits the company: office administration, the office manager, a compliance manager, the bookkeeper or someone else in the business.

PHASE 1 OF 10

Set up the system

The estimate, the ledger and every report use the same cost codes, so the codes come first.

01
Set up the chart of accounts, which is the profit and loss statement at the business level.
OWNER CFO and Controller
NEEDS
The business strategy and how the company reports.
PRODUCES
The chart of accounts, with the job cost codes added under it.
Job cost codes are the profit and loss statement at the project level, and they are chosen in the next task.
02
Choose the job cost codes, aligned with the business strategy and the work the company performs.
OWNER CFO and COO
NEEDS
The job cost code template from chapter 1 of CONTROL, and industry knowledge.
PRODUCES
The cost codes, passed to whoever enters them in the software.
These are the profit and loss statement at the project level. Not the software implementor, the bookkeeper or the CPA.
03
Enter the cost codes into the accounting software.
OWNER Controller and Software implementor Partner: ControlQore
NEEDS
The cost codes.
PRODUCES
The codes in the software.
How to check that the codes went in correctly depends on how each software is designed, so there's no single check.
04
Align the cost codes with the estimate, so every kind of cost has a code: material, subcontractor, equipment, tool, labor and direct job expense.
OWNER COO and Estimating
NEEDS
The codes in the software.
PRODUCES
Estimates built on the codes, so a won estimate already has a budget.

PHASE 2 OF 10

Decide what to bid and win it

Leadership picks the work, and a second look at the price goes out before the bid does.

05
Decide what to bid.
OWNER Leadership
NEEDS
The cash flow forecast, the labor forecast and the relationship factors.
PRODUCES
A decision to bid.
It's part of the business strategy.
06
Review the final bid price before it goes out the door.
OWNER The ops manager or the COO, with estimating and the potential PM and superintendent
NEEDS
The estimator's bid.
PRODUCES
A reviewed bid price, with the blind spots found and a second look at the estimator's strategy.
It's a meeting of the minds.
07
Tell operations when an estimate is won.
OWNER Estimating
NEEDS
A won estimate.
PRODUCES
The bid day budget, built automatically from the cost codes. No one builds it manually.
08
When a bid is lost, review it with the estimator, the PM and the superintendent: what was off and by how much.
OWNER Estimating and PM and Superintendent
NEEDS
The bid, and the client's feedback if the company gets any.
PRODUCES
What was off and by how much, and the adjustments to make on the next bid.
An adjustment might be a lower profit percent on the next bid. Because the company job costs, it knows its floor.
09
Assign the project team: a PM, a superintendent and a field team.
OWNER Ops management
NEEDS
The notice that the estimate was won.
PRODUCES
A complete project team.
10
Hold the project handoff meeting once the team is chosen.
OWNER The estimator who won the project manages it
NEEDS
The project team.
PRODUCES
A team that's caught up on the project.
- Required: the PM, the estimator, the business developer and the superintendent.
- Also included, to learn and to contribute: assistant project managers, project engineers, foremen and junior estimators.
- Operations management or the COO may attend, depending on difficulty, project type, the relationship at stake and the risk.
- The estimator does a page flip: what's being installed where, notes on how it was bid, the thinking behind manpower and the execution of tasks, holes in the estimate, risk, low bids from subs and vendors, and estimated equipment.
11
Introduce the PM to the client.
OWNER Estimating
NEEDS
The handoff meeting.
PRODUCES
A PM who has met the client.
Ideally after the handoff meeting, because the PM has had time to see what the client may ask. The order is flexible.
12
Open the project in the accounting system once it's awarded.
OWNER The accounting team, after the PM's notice
NEEDS
A notice from the PM after the handoff meeting.
PRODUCES
An open project in the accounting system.

PHASE 3 OF 10

Get the contract signed

Three people read every contract, and turning one around takes about 1 to 2 weeks.

13
Go through the contract and mark it up.
OWNER PM
NEEDS
The contract.
PRODUCES
A marked up contract.
14
Send a copy to estimating, the superintendent and business development to redline.
OWNER The PM sends it, and they redline
NEEDS
The marked up contract.
PRODUCES
Redlines.
15
Hold an internal meeting to confirm the scope that was bid is the scope in the contract.
OWNER PM
NEEDS
The redlines.
PRODUCES
Confirmed scope.
16
Read the contract for what happens if it goes legal, and give feedback.
OWNER Legal
NEEDS
The contract.
PRODUCES
Legal feedback.
This happens at the same time as the redlines and the scope meeting, before the markups go out.
17
Read the contract for business impact, such as payment terms, and give feedback.
OWNER An executive who understands business impact
NEEDS
The contract.
PRODUCES
Business feedback.
This happens at the same time as the redlines and the scope meeting, before the markups go out.
18
Put together the markups to send out.
OWNER PM
NEEDS
The redlines and the legal and business feedback.
PRODUCES
The markups, sent to the client.
19
Negotiate the contract and coordinate between the two companies.
OWNER The PM, as the point of contact
NEEDS
The markups.
PRODUCES
Agreed terms.
20
Send the contract for execution.
OWNER Someone with signing authority
NEEDS
Agreed terms.
PRODUCES
An executed contract.
21
Send the company's COI and W-9 to the client or GC.
OWNER PM
NEEDS
The company's current COI and W-9.
PRODUCES
The client or GC has the company's COI and W-9.

PHASE 4 OF 10

Plan the work and buy the material

The superintendent plans what's needed, and the PM buys it once the submittals are approved.

22
Build the schedule of values.
OWNER PM
NEEDS
The signed contract.
PRODUCES
The schedule of values that goes behind every pay application.
23
Own and maintain the project schedule.
OWNER The general contractor owns it. On a pull plan, the general contractor facilitates it and the subs own it together
NEEDS
The contract or bid documents, which include the schedule.
PRODUCES
The schedule the work follows.
Every update to the schedule opens a change of conditions and a chance for a change order. It can be a $0 change order, but it's still a change from the scope that was agreed.
24
Plan the material: commodities, routing and the plan for getting it to the job.
OWNER Superintendent
NEEDS
The signed contract.
PRODUCES
A material plan.
It starts once the contract is signed, at the same time as the paperwork.
25
Start the paperwork: RFIs, submittals and the rest.
OWNER PM
NEEDS
The signed contract.
PRODUCES
RFIs and submittals under way.
The subs are usually secured first, so their submittals go in alongside the PM's.
26
Wait for approved submittals.
OWNER The architect, the engineer and the owner approve. The PM waits
NEEDS
The submittals.
PRODUCES
Approved submittals, which clear the way to buy.
27
Quote out and buy 80% to 90% of the bulk commodities.
OWNER PM
NEEDS
Approved submittals and the material plan.
PRODUCES
Bulk commodities bought, with the pricing fixed, so the superintendent can release material as needed.
28
Check the bill of material against the spec, the drawings and the project requirements for the long lead items, then buy them in full.
OWNER PM
NEEDS
Approved submittals.
PRODUCES
Long lead items bought on a PO with a direction: hold for release, release and store, or release for production.
The business and the project decide which direction. It's the same PO each time, and only the direction on what to do with the order changes.
29
Release the bought commodities as needed.
OWNER Superintendent
NEEDS
Bulk commodities that are bought.
PRODUCES
Material released to the job when it's needed.

PHASE 5 OF 10

Bring in the subs

A sub starts after the subcontract is signed, the paperwork is current and the submittals are approved.

30
Secure the subcontractors and third tier subs.
OWNER PM
NEEDS
The signed contract.
PRODUCES
Subs secured, and submittals from those subs.
- The PM decides, and always talks to the superintendent. The ops manager is available if the PM isn't sure.
- The PM checks the estimate and who the estimator plugged in, then the bid levels.
- Every sub includes and excludes different things. The PM finds the scope holes and gets apples to apples quotes before deciding.
- The PM may take the low bid, negotiate the price down, or choose a higher bid from a sub who needs less management. That leaves the PM more time.
- The goal is to stay within the amount in the bid day budget.
31
Write the subcontract.
OWNER PM
NEEDS
The chosen sub.
PRODUCES
A subcontract: a PO with the rules of engagement added, such as scope, payment terms and safety.
32
Get the subcontract fully executed.
OWNER Both companies sign, each through a person with the legal ability to sign for that company
NEEDS
The subcontract.
PRODUCES
A signed subcontract.
33
Receive and check the sub's COI and W-9.
OWNER Whoever fits the company
NEEDS
The COI and W-9 from the sub.
PRODUCES
A checked COI and W-9 on file.
Who does this depends on the company.
34
Keep track of when each COI expires and get an updated one.
OWNER Whoever fits the company
NEEDS
The expiry date on each COI.
PRODUCES
A current COI on file for every sub.
It's ongoing, and it's important.
35
Get the sub's submittals approved before the sub starts work.
OWNER The sub provides them. The architect, the engineer and the owner approve
NEEDS
The submittals from the sub.
PRODUCES
Approved submittals.
36
Agree with the superintendent on when the sub is on site, per the schedule.
OWNER Subs and Superintendent
NEEDS
Approved submittals and the schedule.
PRODUCES
The sub on site when scheduled.
The sub usually starts the conversation.

PHASE 6 OF 10

Manage the job

The daily numbers and the change orders get handled while the work is going on.

37
Fill out the daily reports: the production done that day, the subs and the company's own labor, and the equipment on site with the hours used.
OWNER The field team, and the superintendent's dailies
NEEDS
The work done that day.
PRODUCES
Quantities per task, such as linear feet of pipe or the number of something installed, so percent complete can be tracked on labor.
38
Enter time by cost code, in the labor and direct job expense sections.
OWNER Superintendents and foremen, every month
NEEDS
The cost codes.
PRODUCES
Time by cost code, sent to the payroll team.
39
Charge equipment to projects each month.
OWNER Accounting team
NEEDS
The superintendent's dailies and the daily rate from the equipment cost basis.
PRODUCES
Equipment, and potentially fuel, charged to the right projects.
Equipment is charged 5 days a week only, even when it works weekends.
40
Document, price and send a change order when a change of conditions opens one.
OWNER PM
NEEDS
The change of conditions, such as a schedule update, and the contract's requirements for the time frame.
PRODUCES
A change order sent within the contract's time frame.
Pricing comes from the change order estimating sheet. If pricing takes longer than the contract allows, an email saying so keeps it from becoming a problem. If the contract sets a deadline and it passes, the cost can become the contractor's expense.
41
Approve the change order before it goes out, based on the dollar amount.
OWNER Depends on the amount
NEEDS
The priced change order.
PRODUCES
An approved change order the PM can send.
Set a threshold for every company and every person, and move it with the PM's trust and competency and the size of the project and the company. For example: under $10,000 the PM sends it without approval, from $10,000 to $50,000 the ops manager approves it, and over $50,000 the COO double checks it.
42
Send legal notices, such as a notice of delay when the schedule falls behind.
OWNER PM
NEEDS
The schedule slip.
PRODUCES
A legal notice sent.
The PM is responsible for these notices. A PM doesn't do something legal alone, so the PM gets with leadership first.

PHASE 7 OF 10

Pay the crews and the vendors

Each payment has two checks on it before the money goes out.

43
Approve the time on the PM's own projects, with the man hours coded to the hours worked and the tasks worked on.
OWNER PM
NEEDS
The time entered by cost code.
PRODUCES
Approved time.
The approval layer helps prevent buddy punching and people milking the time clock.
44
Process the time and complete any required paperwork, such as certified payroll for prevailing wage or Davis Bacon.
OWNER Payroll team
NEEDS
The approved time.
PRODUCES
Processed time and the required paperwork.
45
Process payroll so the bank pays the taxes and the employees.
OWNER Payroll team
NEEDS
The processed time.
PRODUCES
Taxes and employees paid.
46
Code credit card transactions and invoices to the job, using the cost codes set up at the start.
OWNER The AP team Partner: ControlQore
NEEDS
Credit card transactions, invoices and the cost codes.
PRODUCES
Costs coded to each job.
47
Approve invoices for coding on the PM's projects, and confirm each was received and the right amount was billed.
OWNER The PM, every week, in the accounting software
NEEDS
Invoices from subs and suppliers.
PRODUCES
Approved invoices.
48
Pay the invoices when the money comes in for the project, as long as there's a current COI and W-9.
OWNER Accounting team
NEEDS
Approved invoices, the money received on the project, and a current COI and W-9.
PRODUCES
Subs and suppliers paid.
Payment follows the contract terms project to project.
49
Check that there's no dispute the company chooses not to pay over, such as something wrong on a different project.
OWNER Leadership decides whether a dispute means a payment is held
NEEDS
The invoice due for payment.
PRODUCES
Payment released, or held over a dispute.
The approval layers are there to guard against fraud.
50
Hold retention on the subs, and track it on the sub's pay application.
OWNER The sub submits the pay application, the PM approves it and the release of the sub's retention, and the accounting team pays it
NEEDS
The sub's pay application.
PRODUCES
Retention held from the subs, seen and tracked on the pay application.
It follows pay when paid: a sub's retention is released when it's released to be paid. Everything is tracked on the pay application, so no single person owns it.

PHASE 8 OF 10

Bill and collect

The company can't pay people for money it doesn't have, so it collects the money it directed work on.

51
Submit the pay application every month.
OWNER PM
NEEDS
The work done, the contract's billing requirements and the schedule of values.
PRODUCES
A pay application sent to the client.
It can be an invoice with a schedule of values, or the contract can require AIA billing (G702 and G703) and a notary. If the contract doesn't require AIA and a notary and the client asks for them, that's a change of conditions. It may cost nothing, but printing and notarizing take time and money. In Josh's experience, fewer than half of projects require a G702 and G703. Most want a schedule of values behind an invoice, with photos and insurance for stored material.
52
Send lien waivers with the pay application, and collect them from subs when they're paid.
OWNER Accounting team Partner: National Lien Services
NEEDS
The pay application, and the payments to subs.
PRODUCES
Lien waivers sent out and collected in.
53
Send a weekly aging report.
OWNER Accounting team
NEEDS
The open pay applications and their due dates.
PRODUCES
A weekly aging report.
54
Check that the payment is on the way, two weeks before it's due.
OWNER PM
NEEDS
The pay application and the payment deadline: pay when paid, net 30 or whatever the contract says.
PRODUCES
Confirmation that the payment is on the way.
55
If the payment isn't made by the contract's deadline, send a notice of nonpayment with the intent to lien.
OWNER Accounting team Partner: National Lien Services
NEEDS
The contract's payment deadline and the unpaid pay application.
PRODUCES
A notice of nonpayment with the intent to lien.
56
At 50% complete, request release of half of the retention.
OWNER PM
NEEDS
The project at 50% complete.
PRODUCES
A retention request.
57
At 50% complete, take the client's equivalent to lunch and talk about how performance is going.
OWNER The PM, the superintendent and the ops manager
NEEDS
The project at 50% complete.
PRODUCES
A chance to fix things if there's a problem on the project.

PHASE 9 OF 10

Review the numbers every month

The books close, the projects get projected, and the CFO reads it all together.

58
Close the books by the 10th: reconciled and balanced, so the numbers for that month and earlier months don't change.
OWNER Controller
NEEDS
Time, payroll, coded costs and approved invoices.
PRODUCES
Closed books, ready to analyze for trends and job cost.
The bank reconciliations for the month prior are done by then. If they're not, double entries and unapproved costs make the profit and loss and the cash position wrong.
59
Review the daily reports and turn them into percent complete per line item.
OWNER PM
NEEDS
The daily reports.
PRODUCES
Percent complete per line item.
60
Hold the job cost to complete meeting: cost to date plus estimated cost gives the cost to complete, which is the money left per budget line based on progress.
OWNER The PM builds the review for every project they're responsible for and presents them to ops management and the leadership team Partner: ControlQore
NEEDS
The closed books, the bid day budget and the percent complete.
PRODUCES
Red flags found early, and accurate updates for the WIP report.
It happens once the books are closed, on a dedicated day, usually the first Monday after the 10th. It's about help, not blame. It can't be framed as berating or blaming anyone, because the point is to get help to the people who need it and to keep everyone familiar with the issues. Lenders will ask.
61
Find out why a project is trending over.
OWNER The PM usually spots it before the meeting and gets people working on a solution. If leadership needs to get involved, or the fix isn't obvious, the meeting starts that conversation
NEEDS
A project trending to lose money.
PRODUCES
The cause, which decides the next step.
- Out of our control, like tariffs or war: read the contract for a force majeure clause, and possibly send a change order for extenuating conditions. The PM reads it and gets with leadership to decide when to act.
- The estimate missed: estimating and preconstruction, or the COO, fix the estimating process.
- We miscalculated: the company absorbs the cost. It's usually an ebb and flow, because a miss on one thing can be offset by an overbid on another. The PM keeps track and tries to make it up a little on every change order.
- Something on site is slowing the work, such as a spec: send an RFI to speed it up.
- Something is miscoded: the PM tells the accounting team what needs to move.
- A change order is due because the work was done first, as a T&M or on a notice to proceed. Both risk never getting paid and only add to the project cost.
A project trending over is a red flag, and the meeting keeps problems from staying hidden. Each cause has its own next step.
62
Keep the WIP report current.
OWNER The controller owns the WIP report. The PM owns the estimated cost to complete value in it Partner: ControlQore
NEEDS
The projections from the cost to complete meeting.
PRODUCES
An accurate WIP report.
Total Contract Price counts only fully executed change orders. Estimated Total Cost is updated each month from the cost to complete, and it's not the number from bid day.
63
Build the 13 week cash flow forecast: week by week, with the bank account starting Monday and ending Sunday.
OWNER The CFO builds it with the execs, leadership or the owner. The controller may help go through some of the AP and AR
NEEDS
The closed books, and the open receivables and payables.
PRODUCES
Who to call and press for payment, and whether a decision is affordable before it's made.
Forecast every month, in the last week of the month, before the money should be coming in. Forecast every week if money is tight. The questions: what are we expecting, how much do we need, can we survive if we don't receive it, which invoices do we have to collect, and which are coming in and when.
64
Build the CEO report: a rolling 12 months from the profit and loss statement and the balance sheet.
OWNER The CFO builds it. It's reviewed with leadership and ownership
NEEDS
The closed books and the cost to complete.
PRODUCES
The CEO report.
It can be a meeting or just sent. It tells you how to manage the business as a collective, combining everything. Revenue counts only invoices committed to clients in the month, not drafts, time and material tickets, change orders that aren't fully approved, or retention that isn't due for years.
65
Send the WIP report to the bank or surety.
OWNER The CFO or the controller, on request
NEEDS
The WIP report and a request from the bank or surety.
PRODUCES
The WIP report with the lender.
66
Bill retention at the time it can be collected.
OWNER Controller
NEEDS
Retention billed and held.
PRODUCES
Retention billed when it can be collected.
Claim retention right away and it can stay unpaid for months, then be reduced by backcharges or never paid. Ask the CPA how it's treated for tax.
67
Hold a tax strategy meeting with the CPA in early November, to work out what the company can do to finish the year under different scenarios.
OWNER CPA
NEEDS
The year to date numbers.
PRODUCES
A tax strategy for the rest of the year.
The CPA handles tax strategy.

PHASE 10 OF 10

Close out

The client approves the work, and the project closes in the accounting system once every payment is in.

68
At 80% complete, meet on site to plan the close out and the punch list.
OWNER PM and Superintendent
NEEDS
The project at 80% complete.
PRODUCES
A close out plan and a punch list.
69
Send the close out documents and the warranty.
OWNER PM
NEEDS
The finished project.
PRODUCES
The close out documents and the warranty with the client.
Send them before the invoices and separate from them.
70
Approve the punch list, and set the date the warranty starts.
OWNER The client approves the punch list, and the warranty starts from the date the client says
NEEDS
The finished punch list items.
PRODUCES
An approved punch list and a warranty start date.
The date depends on a few things, but it shouldn't be 4 months after the final close out.
71
Send the final invoice, then bill the retention immediately in a second invoice.
OWNER PM
NEEDS
The approved punch list and the retention held.
PRODUCES
The final invoice and the retention invoice.
72
Service warranty claims after the retention is paid.
OWNER The service team or the ops manager
NEEDS
The warranty and any claims.
PRODUCES
Warranty claims serviced.
After this, the project is done.
73
Close the project in the accounting system once all payments are received.
OWNER Accounting team
NEEDS
All payments received, including retention.
PRODUCES
A closed project.

HOW THE WORK GETS OWNED

The rules behind the owners

The CFO and COO choose the cost codes

Not the software implementor, the bookkeeper or the CPA. They know the strategy and the work, and the codes decide what every report can say.

Three people read every contract

One understands what happens if it goes legal, in arbitration or court. One understands scope. One understands business impact.

Some tasks go to whoever fits the company

Receiving and checking the COI and W-9 can go to office administration, the office manager, a compliance manager, the bookkeeper or someone else in the business.

The PM always invoices

The PM submits every pay application and every retention invoice.

A PM doesn't do something legal alone

The PM gets with leadership first.

Safety is a culture, not one person's task

Everyone is responsible for it, and the direction comes from the superintendent.

Pay when paid, and collect diligently

The company can't pay people for money it doesn't have. It also has to collect the money it directed work on, so it can pay promptly. Most people lean on pay when paid and don't pursue the payment.

Put the tracking where everyone can see it

Where it can, tracking lives on a document everyone sees, such as the pay application, so a control isn't one person's responsibility.

Train while the work gets done

Whenever the superintendent does something, include a journeyman and a foreman so they learn it. Whenever the PM does something, include the assistant project managers and the project engineers.

The CPA handles tax strategy

This page doesn't get into tax.

Contracts, lien notices and tax vary by state and by contract. Legal questions go to an attorney and tax questions go to a CPA.

WHERE THIS CONNECTS

The book and the templates behind it

THE BOOK

CONTROL

The 8 steps, in the order to install them.

THE SYSTEM

The system, step by step

What each step depends on and what it supplies.

TEMPLATES

PM standards pack

The written standards your project managers follow so billing dates hold without you following up on them.

TEMPLATES

Cash flow, WIP and the CEO report

The 13 week forecast, the lender WIP schedule and the CEO report.

PARTNERS

Who we point people at

The software and the lien company in the tasks above.

Everything on this page is something you can install yourself, and CONTROL is the order to do it in. If you would rather buy the finished result, SPM The Construction CFO does this work for commercial subcontractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, led by the same author.

What SPM The Construction CFO does, and what it costs

AUTHOR

JOSH LUEBKER

MASTER ELECTRICIAN · 150+ PROJECTS · $2.1B+ MANAGED

Wrote CONTROL, the 8 step system behind these figures. More about the author.

Who ownseach task