Operational work – The bid evaluation – part 9

When we have some construction position we cannot do it, we need to find subcontractor. When we engage subcontractors, we usually have a less margin. Because of that, we need to find the subcontractor with the best condition for each position. Bid evaluation in NAV4Construction is based only on the lowest cost recommendation, but we have many other information in decision process (e.g. discounts, payment methods, due date, warranty period…).

Requirement for subcontractors we fill in Requisition Worksheet, with other requirements, as items. When we fill required positions, we need to fill Quote Query No. for all positions we want to purchase from one vendor (on one quote).


From Requisition Worksheet, we can print Quote Requirement document or export requirement in Excel file.

When we get offers from potential vendors, we need to put them in Purchase Quote in NAV. We can do it manually or automatic using import from filled Excel files. We must to fill Quote Query No. on Purchase Quote Header. This is mandatory data if we want to use bid evaluation process.


We can do bid evaluation process for complete quotes, or for each construction position individually.



We need to fill Quote Query No., type as Position and Position No. We can use Best quote windows for bid evaluation, not only for position; we can use it for item, resource… Because of that, we need to choose Type option as Position. System will make ranking based on Direct Unit Cost, with many other information.


When we choose position for ordering, we need to run Apply and system will update Requisition Worksheet with data from this quote. After that, on Requisition Worksheet, we need to run Accept the action and we will get Purchase order with choosing positions.


If we want to make bid evaluation for complete offers, process is similar as individual process. We need to fill Quote Query No. and Row number. Row number is mandatory, because we cannot compare Quotes with different number of lines.


System will make ranking based on Amount including discount (sum of Direct Unit Cost with discount), with many other information. Acceptation process is the same as in the previous example.


Posting operational work (Subcontractors) – part 7

In my previous six posts I described posting of own work on projects, using different models. The base characteristics of this models is that we have our own resources and items consumption. Now, we have once more model for posting, when we use Subcontractors work. Target is the same, we need to make some contracted Construction Positions, but now we do not use own consumption.

We have two types of subcontractor’s engagement in our construction projects:

  • First, we can engage subcontractor for do some minor work on our positions. That means, we will work some part of job, and some part of job will made by subcontractors.
  • Second, we can engage subcontractors for doing complete job by position. This is very often when we work on complex construction with very vary business processes, as construction of houses, buildings, etc., because the main constructor often perform only one or two types of works and engage subcontractors for all other works.

I describe how we can planning that in Construction Position Norms in my old post about Construction Position and Norms – Cost Analyze and Bill of Quantities – (Subcontractors), but now I will describe posting of subcontractor usage.

Subcontractor’s minor engagement

This is the simply process. We get invoice from subcontractors for their part of work. For posting, we will use the standard NAV purchase documents, Purchase Order or Purchase Invoice. We will post this as our cost using G/L Account, but we must to set Job No. and Job Task No. in Purchase Lines. When we post document, we will get Job Ledger Entries with G/L Account types. Our own part of job, we will post using Job and Position Journals or using Output Orders. We will invoice position we posting using Position Journals or Output Orders, with the same quantity.

We can use this model for all planned or unplanned costs on project. NAV will be classifies our own usage as resource cost or as item cost, and all other costs as G/L Costs.

As I said, this is very simply process. Other posting method need more customization or more manual work. We choose customizations, and we make automatic model of subcontractors posting in our solution NAV4Construction.

Subcontractor’s complete position engagement

In this example, we engage subcontractors for doing complete job by position. We get invoices/certificates from them for complete position engagement as we have this job in our Bill Of Quantities.

Doesn’t meter I said is too complex process, we mad it simply. For posting, we will also use the standard NAV purchase documents, Purchase Order or Purchase Invoice, but with some customizations. We will post this using Position types (new NAV4Construction type), and we also must to set Job No. and Job Task No. in Purchase Lines.


When we post this document, we will get Job Ledger Entries with G/L Account types (G/L Account from Posting Groups) as cost, and also Position Ledger Entry with output quantity and price from BoQ, and posting type Subcontractor, as well. With only one posting, we will get complete posting process, and we can prepare our invoice to customer.

Posting operational work (Position Journal) – part 2

If we decide to use Position Journal, we will get easier operational work, but less of analysis quality (we cannot get COGS and resource cost per position). In some other post, I will detail explain different between Output Order using and Position/Job Journal posting. Also, posting results are not in posted documents, but there are only in Position Entries.

Position Journal is standard journal as all other journals in NAV. As standard NAV journals, Position Journal also has Journal Batches. This table contains the batches we set up for our position journals. Batches let us group entries in a posting session and place a unique stamp on that session. This provides an additional measure of audit control. Whereas, source codes and reason codes tell us the source of an entry and why the entry was made, batches tell us when the entry was made and in what group of entries it was made.

Entering data in Position Journal is simply and fast. Data are the same as Output Order header, but we can put them for many different Projects, Construction Positions and Dates. When we start to fill Position Journal, we need to input:

  • Document No. (automatic from No. Series or manually)
  • Document Date and Posting Date (there are usually the same)
  • Project No. and Project Task No.
  • Position No. (system will make automatic filter for positions and we get only positions we define on Bill of Quantities, as on Output Order; if we eventually must post position out-of-BoQ, we can press ‘Show All’ and we will get complete Construction Position code list.)
  • Quantity (in Cons. Position UOM)
  • Dimension Values and some other groups

All other data (UOM, Costs, Prices, Posting Groups…) will be entered automatically from setup. If this is not first posting for this position on this project, we can see previous posted quantity for this position. We also can see contracted position quantity from BoQ. On this way, we have control before posting this values. All of that data are placed in bottom statistic area.

There are some another small additional functionality, but globally, this is all for input. After that, we only need to post journal. Posting is easy, by press Post or Post and Print button. Posting result will be placed (only) in Position Ledger Entry.

All posting of COGS and resource cost, we must do with Job Journal. About Job Journal in my next post.

Bill of Quantities – (End of work) part 4

Let’s go further. When we finish all calculation in Bill of Quantities, quantity surveyors must to close deal. If quote is accepted and contract is signed, we need to “freeze” our document. We can do that when we change BoQ status to ‘Accepted’. When we confirm document, all changed are not possible any more. Also, on ‘Project Card’ this ‘BoQ No.’ is linked.

Certainly, sometimes we may have needs to change or add some data. If we need to change only contracted quantity or price (sometimes, we can change our price when contract be valid for many periods), we can ‘Reopen’ document. If we increase scope of the project (annexes, claims or something else), we can make new “sub-BoQ” with ‘Scope extending’ command.


We can reopen document with ‘Reopen’ command on ribbon. When we start this command, status will be changed to ‘In progress’. Reopening can done only by users with specific rights on ‘User Setup’ page. This is not ‘New’ status and we cannot change all data.


If we try to change some non-changing data, we will get the error message. We can change only quantity, position price and discount fields. For any other changing we must to change scope. These are data what we can usually change in standard contract. When we finish our changing, we can again change status to ‘Accepted’. In this moment, system will automatically start function ‘Adjust Position Price’.


This function can enable changing positions price on next documents/entries:

  • Position Ledger Entries
  • Output Orders
  • Calculations

I will explain all of them documents in posts about operative work in construction management. It is important to know that we can change price in all documents before invoicing. If we make invoice with wrong price, first we need to correct them and after than make it again.

We can use ‘Adjust Position Price’ command manually, as well.

Change Scope

When we make additional work on project, we can make contract annex or just arange new claim. In NAV, we can do that with command ‘Scope extending’ on ribbon of document.


When we start this command, we will get new document with the same document ‘No.’ and ‘Project No.’ as source document, but we can add new ‘Job Task’. We get many documents with the same number, but everyone for each annex or claim. In this document we can define new or old positions with same or different quantities, costs, normatives and prices.

Bill of Quantities – (Calculating) part 2

We created header information and some base data at lines: Construction Positions. Unit of Measures and Quantities. We can put one of unit of measures, we configured on Construction Position. If we have Quote Requirement in Excel from customer with many Position lines, we can use command ‘Import from Excel’ from ribbon. After that we can start with calculation of Position Price for quote.


For calculation process, we start the command ‘Calculate process and costs’ from ribbon. We can choose next options:

  • Price List: NAV will use Price List from Construction Position defined for this project (I describe Construction Position Price List in my old post)
  • Calculation: we need to fill percent of ‘Planned Margin’ and NAV will add this percent on calculated Unit Price at BoQ line

When we first time start this command, we must to mark field ‘Calculate normatives’. NAV will be use active version of normative for this construction position with planned resource and item consumption (or subcontract work) to calculate unit cost of construction position and unit price of construction position.

If we some other time start the same command, we need to:

  • Mark ‘Calculate normatives’ if we want use other version of normatives,
  • Unmark ‘Calculate normatives’ if we only want change percent of ‘Planned Margin’.

NAV will calculate all amounts and will link used version of normatives to BoQ line.


We can change ‘Unit Position Price with Discount’ directly from field or adding value in ‘Discount %’ field. NAV will use next calculation method:


Will be continue…

Quantity Surveyor Section – Bill of Quantities

It is been eight days since my last post. I had other business responsibilities, as well. Now I can continue to write about this theme. I promised that I will continue to write about creating Bill of Quantities.

For those of you who are the pioneers in construction business and who do not know what is Bill of Quantities (BoQ), this is a document used in tendering in the construction industry in which materials, parts, and labor (and their costs) are itemized. It also (ideally) details the terms and conditions of the construction or repair contract and itemizes all work to enable a contractor to price the work for which he or she is bidding. Bills of quantities are prepared by quantity surveyors (quantities and costing) and building estimators (technically).

In NAV4Construction, we prepare BoQ for each project. We will find BoQ on Departments->Quantity Surveyor Section->Planning & Execution->Bill Of Quantity.


We start with input ‘Job No.’ (created Project) and after that we continue with input of ‘Job Task’. Task is the smaller part of the projects. Usually, task is basic contract or contract annex or some claim… Combination of jobs and job tasks enables us many different BoQ with the same BoQ number. BoQ can be configured in different currencies, depend of project currency settings. On document header, we can link project fix cost definitions (I will detailed describe this in some later posts). After header data, in BoQ lines, we need to fill ‘Construction Position’ and its quantities by contract specification. About ‘Construction Positions’ calculation, I will write in next post.

‘Bill of Quantity’ has next statuses:

  • Opened: Status when we create new document. We can insert, modify and delete all data on header and lines.
  • Released: We get this status when we finish with data insert. In this status, nobody cannot insert, modify and delete any data. From this status, we can print ‘Quote’.
  • Accepted: This status said that contract is signed and after that all data are locked. This status is reserved only for users with specially rights.
  • In progress: We can get this status only from ‘Accepted’ status by users with specially rights. This status enables modify very small part of data if we need to change some articles in contract.

Will be continue…