Problem identified, danger averted – effective construction project controlling with the PROMOS construction account

In Berlin, for example, the housing demand is projected to be 137,000 apartments by 2025; however, the actual demand may far exceed this figure.¹ Contrary to the general impression that Berlin residents are tired of the countless construction sites in their city, their attitude towards new construction projects is very positive. When interviewed in a survey, 67 percent of Berliners even said that they would be okay with new housing being built in their immediate neighbourhood. At the same time, half of those surveyed could image moving into a new-build apartment themselves.²

The spectre of construction projects: obstacles and challenges

So if the market and politicians are encouraging new builds, what are the obstacles? Of course, the main prerequisite is that building land is available. However, it is the long-term nature, risk, capital intensity and complexity, which are unavoidable, that make construction projects a gamble. Well-structured project management is the key to keeping these factors in check. It is also essential to have the right technological support as, without it, such things as cost planning, supplier management and order management are hardly conceivable. SAP® already provides a basis for managing construction projects, and PROMOS has enhanced this by adding a range of additional tools, reports and features. Currently in the spotlight: the PROMOS construction account and project cockpit for SAP®.

The construction account: a definition

The construction account, which used to be mandatory task but is now an essential documentation tool for property developers, can be defined as evidence of the planned and actual use of building funds available for a construction project. In accordance with the “Bauforderungssicherungsgesetz, BauFordSiG” (English: law relating to the guarantee of claims for building costs construction), construction funds refer to the sum of money that the recipient has received from a third party for a service related to the creation of a construction or a conversion (Article 1 Paragraph 3 No. 2 of the BauFordSiG). In addition to the sum of income and expenditure, the purpose, due date and payments made are noted in a construction account. The construction account thus serves as a clear basis for targeted construction project controlling.

PROMOS construction account: the simple solution for SAP® users

The standard SAP® version does not include an option for issuing a construction account. To create this, the user would have to execute various different transactions and compile the results list, which would require a lot of effort. This approach is not only time consuming, it is also especially prone to errors. In contrast, the PROMOS construction account generates a single ALV list with all the relevant information for one or multiple projects and thus forms the basis for effective construction controlling. Be it budgets or incurred costs – you decide which values are entered in the list for each purpose. For example, planned costs, budgets, construction contracts (commitments/remaining commitments) as well as purchase requisitions can be presented clearly.

Transaction, selection, evaluation: an individual construction account in just three steps

Using the solution could not be easier. After executing the relevant transaction, the user sees various selection criteria in a selection screen (Fig. 1). A selection can be made via one project or multiple projects and/or WBS elements, for example. The user can also restrict the time frame in the form of an accounting period for the data to be output. In the last step, the user defines the layout of the evaluation and determines which values are actually shown. Are parked invoices significant in this regard? Should maintenance orders for WBS elements be shown separately? Do zero lines make things less clear and need to be hidden? And do documents without an order reference need to appear in the construction account? In this way, users decide bit by bit in a single screen which data are relevant for them. A click is then all it takes and the PROMOS construction account automatically compiles the information from the various areas of the SAP® system into a clear ALV list (Fig. 2).

The header provides information on the selected project (e.g. name, project manager and project period). WBS elements are shown in yellow and contain cumulated values. In contrast, individual documents are not cumulated and are displayed in blue so that they stand out. The usual SAP® filter options are available for the evaluation. If an issued documented is particularly important for the user, then it is possible to jump to the detailed data via mouse click. To perform further analyses, the user can export the output data as an Excel file or into the SAP® BW system, if required. The benefits of the PROMOS construction account are clear:

Extremely easy to use thanks to a single-screen transaction
An evaluation for all relevant construction account KPIs
Individual selection criteria for a purpose-specific display

The construction account: the data window for external project participants

Various different groups of people are involved in a construction project – from internal employees to service providers, suppliers and creditors. In certain cases, it may be necessary to make data from the construction account available to these stakeholder groups. However, external groups of people, in particular, should only be able to view the data that is relevant for them. PROMOS has developed a web portal for this purpose, which enhances the construction account. The required data can be provided with flexibility in this web portal (Fig. 3). As a property developer, you can determine yourself who has access to the data. The data reaches the portal via a report and can be updated automatically on a regular basis, if required. The data is not compiled and exported manually and, at the same time, external user groups always have an up-to-date view of the relevant information.

PROMOS project cockpit: KPIs and project management from a single screen

The PROMOS construction account is the basis for a host of other functions and products. These include the PROMOS project cockpit, above all. In addition to a clear display of important data and KPIs, this provides users with various options for efficient project management. The project cockpit has three important tabs:

Project overview: To display KPIs and record risks and opportunities
Order: To record and manage the contracts and supplements
Invoices: To display, check and release invoices, manage deadlines and follow up defects and warranties

The project cockpit contains the user’s data straight from the construction account. Maintenance and management functions are performed by jumping out of the cockpit (Fig. 4). The functions required for the specific process are available to users at all times.

Summary

The PROMOS construction account is not only a simple documentation tool for property developers, as is customary. With the PROMOS project cockpit, all the key functions for project management can be viewed on a central screen. These and many more components form a tight network of solutions that covers all areas of construction project management. This thus radically reduces the complexity of construction projects and turns pipe dreams into dream properties.

Problem identified, danger averted – effective construction project controlling with the PROMOS construction account

Stay Updated on IT and Real Estate – Subscribe Now!