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Features of the account of contracts in the company performing design works
Each company performing design works, deals with contracts. The majority of them has a question of automation of the account of contracts. Some companies wish not only them to consider, but also to operate contracts. Automation of management by contracts, certainly, has the features. We will consider some requirements to system of automation of contracts on design works that can seem to interestingly companies facing to a choice of system of automation of management by contracts.

Automation of contracts begins with their account. Card files with contracts and certificates should be evident. Entering into a card file, the employee should see the information on the document: number, date, the counterpart, the shipment sum, the sum payment etc. Moreover, the information conclusion should be capable to be adjusted by the user.

Each document has the printing appearance or some printing kinds. Printing forms can be regulated the legislation or company internal policy, and can have any form. For example, on the basis of the shipment document the invoice, a waybill, etc. which are confirmed by the law should be formed. The form of the certificate is defined by the company which already has any form, and can have some variants. The system should allow to create and adjust quickly printing forms, and also to store references to external documents of any type. Besides, the document should store all information for printing forms, so in the contract the information for the printing form of the contract, schedules of works, the planned schedule, the estimate.

Each document before becoming the fact, passes a chain of coordination. Though in the small companies creation and the statement of documents can be engaged the director, the document affirms as the majority of the companies, before will be signed: contractual department, accounts department, industrial department, lawyers etc. On the other hand, the contract can be at us, at the counterpart, be a fax copy etc. System should to allow to establish any status of the document and to generate the report under coordination.

Feature of management of contracts is structure and hierarchy of documents. We will consider a chain. Not all links can be present at the company. In the beginning between our company and the customer the partner program for the certain period consists. The program has recommendatory character. On the basis of the program the general contracts which are not containing concrete positions consist. Under the general contract working contracts with instructions of terms, works, the sums etc. addition to the additional agreement Also can be concluded. The contract breaks into stages with the terms and the sums, in a stage the positions, and on each position the expenses. In the certificate we can close in any form stages and positions. A similar chain in relations with suppliers. If the system of automation does not support such architecture, it not management of contracts, and the trading-warehouse account of contracts.

The information put in documents, should work. And it not only formation of printing forms. By means of the analytical account we should receive a picture both one contract, and a portfolio of orders (contracts), i.e. the system should support OLAP technologies. The automation system should contain the generator of any reports. And to support fast addition of new analytical directories (for example, for some companies performing design works it is important not only object of designing, but also a complex of objects for designing “turnkey”). Certainly, presence of specialised reports only is welcomed.

What should we have on an exit from a control system of contracts? The information on company position, the plan-fact of execution of contracts: incomes and expenses, the cost price, movement of funds. The planned information is formed on the basis of contracts, actual on the basis of shipments and payments under contracts.

It is very good, if the system is integrated with calculation of the cost price and budgeting. The planned cost price is formed on the basis of contractual estimates. The actual cost price consists from design, assembly, starting-up and adjustment and repair work, write-off of materials, general business expenses which are distributed under contracts. The portfolio of contracts creates the operational budget of the company. The fact sheet gets to budget execution. Under contracts planned schedules of performance of works and movement of funds are formed. If the company does not concern to small, it makes sense to give particular attention to formation of budgetary plans for the accounting periods adequately to operate firm.

Recently into the first rows of management of company contracts enter possession of the not financial information about a contract condition. Channelized Management of Problems (workflow, projects) is called. The problem is formed on the basis of carried out works under the contract, is in a certain condition, has terms and consists in communications with other problems. That the point the contract has been executed, it should pass some conditions. For example, working out of the program module pass following conditions: technical requirements, working out, debugging, a documentation writing, pre-production operation. So that to hand over the given point of the contract, the problem should have a final condition.

For the small organisations performing design works, it is enough for the account of free programs or Excel. For the companies with standard business processes the box product will approach. If the company or holding has the difficult internal account here introduction already will help. As the head of the company which are engaged in working out and introduction of the software of automation of Management by contracts, I can advise to the companies-customers with understanding to concern introduction and all difficulties connected with it, not only program, but also administrative and psychological. The project is considered successful if 90% of the working capacity stated in the technical project are provided. Seriously increase chances of successful introduction and receptions of effect from introduction attraction of the consulting company for optimisation of management by the company and to a technical project writing.

The technology of introduction also can differ. Some suppliers practise complex automation turnkey. Such approach is connected with certain difficulties. Chances that the system as a whole will earn, much less, than probable working capacity of the separate module. Therefore some companies prefer scrappy automation from working modules. Even if the adapted software product completely corresponds to the technical project – not the fact that he will earn. At a design stage end-product contours look enough shaky. Probably, it is better to introduce not turnkey, and to use a method of working prototypes. During each moment of introduction the customer already has working system with the limited functionality. Such moment allows to define quickly enough, whether the given system for automation of performance of design works approaches, instead of to wait pre-production operation. Besides such approach allows to find and correct errors quickly.

Before a choice of system it is better to familiarise with all products in the market by means of demos (fair brochures not precisely enough transfer program possibilities), and in case of introduction to arrange the tender.

Certainly, each branch has the features, but the account of contracts in designing, as well as in building, is most individual. In the account of contracts new measurement – object of designing is added. At a choice of an information control system of contracts the design organisations should consider the given aspect necessarily. We will assume that objects of designing in system are. Now we will consider features of the account.

The concluded document can concern one object (for example, object designing), or to several (designing of several objects), therefore the object choice should be possible both in a document cap, and in each position. In printing forms the table can become multidimensional, for example, in lines works on object, and in columns objects will be specified. Accordingly the information system should allow to add not only lines, but also columns, and programmers should be able to do it as the operational document represents the flat table where in each line individual works and objects are specified. And, certainly, the account of contracts in designing should support the regulated printing forms. Besides, it is desirable to divide types of contracts: on building, repair, modernisation etc.

What represents object of designing? This both geographical place, and division of the counterpart, both a resource, and process. As a whole the object of designing should contain following fields: the name (probably separately object number), the address, object type, the customer-designer-executor (our company in this chains the designer). The object of designing can consist of unique resources (commodity-material assets) or from other objects. Besides, it is necessary to have in view of that usually it is required project performance “turnkey” (except performance of design works, performance starting-up and adjustment and repair work). At performance of projects “turnkey” except the object it is necessary to execute a complex of projects For these purposes we in documents we enter value “Object 2”.

At formation of reports on designing necessarily there should be an object. The manager of the company should see: on what objects what there are works. As the object is geographical concept (though there are the objects which do not have a geographical binding, for example object of designing – details in machine-building branch) reports should be formed also in a cut of regions or is more detailed. Special attention are given to specialised reports which characterise a situation in contracts on object. In concrete object it is necessary to see what works are conducted and under what contract. As the most part of works in designing is carried out by designers, it is necessary to see communication between works of the customer and the designer. I.e. to trace situations when works with the Customer are not closed by the designer, and on the contrary if the designer on object is not adhered to relations with the customer.

In long-term contracts or partner it is very good to programs to have the schedule of performance of the project. The schedule of performance of the project represents classical management of projects where one problems are connected with others: start-to-finish and others to relations. And a situation with designing it is possible to see by means of reports the plan-fact, for example, the diagramme of Ganta or the control of current works.

The account of contracts in designing has the features, therefore not all ready decisions can approach for automation of such processes. And to adjacent modules additional restrictions as we have considered in cost price calculation, budgeting and management of projects are imposed.

Let's consider specificity of branch.

The experts already having an operational experience in this branch, the former chief accountants or directors for development become financial directors of the design companies more often. But recently the organisations performing design works, do not have not enough qualified personnel, therefore there were precedents when the finance administration of the large design company is headed by the professional from other branch to which frequently should face problems absolutely new to.

Key feature of designing is a complexity of use in a finance administration of some approaches typical for continuous (process) manufacture. When every day in shop the same steel is cast, it is possible to make the report on profits and losses to analyse it and to understand, what expenses have been suffered for outflow, say, steel tons. In designing average duration of the project makes about one year, it is required to generate ideas. To define expenses which have been suffered for designing of concrete shop by the area of 1000 sq. m on 5th floor, with necessary degree of accuracy it is unreal. Business becomes complicated absence of adequate standard base and constant changes in the project, for example, when in the course of designing of the nine-floor house have decided to make instead of it three houses in the form of steps on two, three and four floors. As a result the basis of calculation of the cost price of designing has changed, the account part of the project needs to be recalculated on other basis.

The account and planning of expenses on manufacture to realise much easier. At designing many unpredictable payments, recoils to consider which it is impossible. They are connected first of all with the coordination of projects, and also with a concrete site. For example, at carrying out of excavations the underground karst which has been not noticed by geologists at a stage of inspection with which it is necessary to fill urgently with concrete or a water lens which needs to be pumped out that leads to changes in the project is found out. These factors essentially influence project cost.


Sources:
1. Truhachev S. Some requirements to automation of management by contracts
2. Truhachev S. Features of the account contracts in construction
[http://www.klerk.ru/soft/articles/42968]
3. Larionov V. Upravlenchesky the account in the building company. – 2005 [http://www.ksss.ru/index.php?name=Sections&req=viewarticle&artid=7973]

The author: Челябэнергопроект
Date: 03/23/2010

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