Q&A with Dave Wolff-Pellingra, SIS LLC Senior Construction Operations Consultant
In this month’s THESIS Q&A, we sit down with Dave Wolff-Pellingra, SIS Senior Construction Operations Consultant, to explore the new Subcontract Module within SIS Construct 365 Project Cost Management. There has been a lot of interest and feedback from the user community regarding these new updates, and we are excited to get to share some of the details with you today.
Q: Why did SIS decide to release a new subcontract module?
A: I think there are a few reasons why. The biggest one is that the previous subcontract solution was intrinsically tied to the standard Microsoft Dynamics 365 purchase order functionality, which includes all of its benefits and drawbacks. Having a solution instead that does not rely on a purchase order was a big part of why that decision was made. Without using standard purchase order functionality, we can also have a retention and pay-when-paid management solution. We can include new things, like an easier way to reverse transactions against a subcontract. The changes we have made were designed to make the D365 system easier for Construction industry professionals.
We decided to improve the functionality for items we already had a previous solution for, such as compliance tracking. There is now a new inquiry screen where you can view compliance items across subcontracts. In addition, we have a new retention management process. We can now look at retention at the subcontract level or even the line level, which has previously been unable to do.
Generally, the idea is that we wanted to enhance the user experience. We wanted to make it easier, whether you’re reducing dual entry by having subcontracts created directly from budgets, either standard original budgets or change order budgets, or if it’s the ease of use of reversing out a previously entered subcontractor invoice. Some of those were difficult and required dual entry or multiple steps in different modules. Now with the SIS Subcontract module, it’s an easier solution that will make the user experience that much better and something that people will consider a big win.
Q: What are the primary new features of this module?
A: I would focus on two primary new features. The first is the progress reports. The progress reports are a brand-new idea within our SIS Subcontract solution. We have an intermediary step between creating a subcontract where we have committed cost on your project and the invoicing that comes in from your subcontractor. We know there are times when work has been performed in the field that hasn’t been invoiced yet due to a delay, and it could take several months before invoices come through. Meanwhile, you are not realizing the actual costs that have hit the project up to that point. The progress report gets around that, where we can now determine whether a certain percentage of work has been performed or a certain quantity of units has been installed. We can create a record in the system that will accrue costs against your subcontract from that determination. It’ll remove that committed cost and more accurately show true cost against the project, which means truer accuracy for revenue. It allows the field to have a say in what’s going on for the subcontracts they manage.
It also allows you to validate when your invoices come in from your subcontractors, to say that from the field, we’ve determined the subcontractor work to be about 50% completed. And if you get an invoice that says, “We’re invoicing you for 60% of the work,” there’s some discrepancy. And it’s something that can be challenged to say, “I disagree with that sort of percentage,” and that conversation can happen based on the backup information you’ve provided from the field and your team on the ground. This allows for more validation, better accuracy of costs, and the ability not to wait for subcontractors to send their invoices.
The other kind of primary new feature is the subcontract summary report, which, despite the name, is actually an inquiry screen. Previously, we have had a good reporting solution for our subcontracts in things like Project 360. Our Project 360 inquiry has a tab with all subcontract details so you can see your subcontracts for one project. You can see each line on those subcontracts, how far they’ve been invoiced, the balance, and what payments have gone through; there is so much detail.
However, that was always one project at a time. So now, we can view subcontracts across projects using this new subcontract summary inquiry screen. We can also drill down to see a particular project manager’s subcontracts for their projects or look at a particular vendor. You can drill down that way if you have multiple subcontracts by the same vendor across projects. If you’re looking for particular information about a specific subcontractor specialty, let’s say you’re looking for your demolition subcontractors, and you want to see the progress for the subcontractors written to those kinds of vendors, we can quickly drill down in that way. It gives you a very broad and robust reporting option to see subcontract information across the board as you need to see it.
Q: Are there any new reporting options? Or is that covered by the subcontract summary report?
A: The subcontract summary report is the main new reporting option, but there are also two compliance inquiries. One is where we can see compliance items across subcontracts, which can then be filtered down to show what items have expired and which are related to particular subcontractors or specialties. There’s even an inquiry which filters for things related to your particular projects automatically. So, if you are the “responsible person” for that particular compliance item, there’s an easy function where we can go right into an inquiry, find the compliance items that are related to the things you are responsible for, and get that detail immediately.
Q: What implementation considerations should somebody evaluate when looking at this new subcontract module within PCM?
A: If we are talking about a new client who is just coming on board with SIS, and we’re providing this new subcontract module as part of a total solution, it’s going to be very similar to all the other areas of the system, where the modules all need to be configured correctly. The processes within that particular module will need to be defined. The testing process will have to be defined for the steps your users will take to perform those processes.
It’s no different than creating a project or paying an invoice; this new subcontract solution goes along with that. It’s a seamless process within the implementation where you’ll be introduced to the SIS add-on in Project Cost Management, including this new subcontract module. It’s just a part of the total solution we will provide. All the details that come along with how we do an implementation will also include this new subcontract solution.
Q: Does the new subcontract module deliver value from day one, or does it take time to realize the benefits?
A: We are confident this solution will provide immediate value, enhancing daily operations and overall business efficiency from day one. While there will be some change and a learning curve initially, once you get the hang of the system and become familiar with how it works, accessing project details will be much simpler. Generating reports will also become smoother and more manageable. The people using this system will start experiencing these benefits right away.
The system is designed to be highly integrated, meaning everything works together seamlessly. For example, a project manager will have a clear view of their projects, easily tracking costs, budget allocations, and subcontractor details. When a budget includes subcontract costs, the information flows directly into the subcontract record, and invoices are automatically connected to the system, feeding into the Dynamics 365 AP module. This integration ends the need to search through multiple spreadsheets to manage different aspects of a project. Everything is accessible in one place, making it much easier to stay organized. Those who use the system will notice the benefits immediately.
Q: Any closing final thoughts?
A: The new subcontract functionality is an excellent example of where SIS is heading. We looked at the previous solution and thought, “We can do better,” so we listened to feedback from our current clients and considered what future clients might need in a new system. Our team, including developers, functional consultants, and industry analysts, worked closely together to create a solution that meets both current and future needs. This collaborative approach is something our customers can expect more of moving forward—not just for subcontract functionality but across the entire construction industry. It’s a glimpse into the future of how SIS will continue to innovate and improve.
