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04/10/2016
Solution

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

The growing shortage of housing has been a key point of discussion in politics and business for a number of years. In urban areas, in particular, affordable housing has become rare. Various laws have thus been created to date that aim to curb rental price increases while improving housing availability. However, the delta between supply and demand is so great that this can only be counteracted effectively with the appropriate new construction projects.
PROMOS Baulösung

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.

Informationstechnologie und Immobilien (IT&I) Ausgabe Nr. 37 / Mai 2024

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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).

Selektionsmaske des PROMOS Baubuchs
Figure 1: The subsequent evaluation is defined in the selection screen of the PROMOS construction account.
Eine übersichtliche ALV-Liste zeigt die vorab bestimmten Kriterien des Bauprojekts im PROMOS Baubuch.
Figure 2: A clear ALV list shows the previously defined criteria of the construction project.

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.

Das PROMOS Baubuchportal ist ein Webportal, auf das externe Dritte flexibel zugreifen können.
Figure 3: The PROMOS construction account portal is a web portal to which external third parties have flexible access.

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.  

Das PROMOS Projektcockpit mit Funktionen der Verwaltung von Aufträgen und Nachträgen in SAP.
Figure 4: The project cockpit with functions for managing orders and supplements.

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.

  1. http://www.morgenpost.de/berlin/article207821521/Bedarf-an-Wohnungen-groesser-als-vom-Senat-berechnet.html
  2. http://www.morgenpost.de/berlin/article207912229/Jeder-zweite-Berliner-wuerde-gerne-in-einem-Neubau-wohnen.html
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