Module 41 · Foundation · 9 min read

The project and its breakdown (WBS)

You will be able to: Describe the fields of a project record and its status list; Build a breakdown of categories and items and say where cost, quantity and progress live; Calculate sell and cost amounts of items and the weighted progress of a project.

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A project in Zeyto Construction & Contracting is one piece of work for one client. You create it from Projects with a name and, optionally, your own project number (otherwise the next number, such as P-00001, is taken). Saving creates a project centre with the same code, so documents can be tagged. The project card holds the client, consultant, project manager, key dates and a status.

The Projects register listing each project with number, name, client, status, contract value, budget, actual cost and progress.

Projects: one row for each job.

Projects: one row for each job.

The statuses, in the order a job normally moves, are enquiry, tender, planning, active, on hold, practical complete, defects period, closed and cancelled. Two controls on the card matter for money: the cost lock date (no cost may be posted on or before it) and the over-budget control (off, warn, approval or block, covered in module 4).

The breakdown

The breakdown (WBS, in the help for people who use the term) is one tree. A category groups other nodes and shows the sum of what is below it; an item is where quantities, rates, cost, material issues and progress are entered. Zeyto warns when a tree goes deeper than 6 levels and refuses beyond 12. You can copy a branch from the Category Master with Copy into project, after which the project no longer follows the master, or add nodes by hand.

The Structure tab of a project showing the breakdown tree with categories and items, and the budget, actual cost and progress of each.

Structure: the breakdown with budget, actual and progress.

Structure: the breakdown with budget, actual and progress.
  • BOQ quantity, sell rate and unit cost are typed on an item.
  • Sell amount is quantity times sell rate; cost amount is quantity times unit cost.
  • Budget is then split by nature (material, own labour, machines, subcontract, third-party manpower, other).
  • Progress is entered on items only and rolls up to the categories above.
Two items and a weighted progressItem W1.1 Floor tiling: 1,200 m2, sell rate AED 85, unit cost AED 62. Sell amount AED 102,000, cost AED 74,400. Item W1.2 Skirting: 300 m, sell rate AED 140, unit cost AED 98. Sell amount AED 42,000, cost AED 29,400. If tiling is 50% done and skirting 20% done, project progress is weighted by sell value: (102,000 x 50% + 42,000 x 20%) / 144,000 = 41.25%. A simple average would say 35%, which understates the large item.
Watch outProgress moves only when the project manager approves a progress entry. A percent typed by a site engineer is a request until approved, and a progress bill can never claim more than the approved progress of the item.
TipDesign the breakdown the way you want to control cost, not the way the drawings are numbered. If you never want to know the cost of 'brick laying' separately from 'plastering', do not make them two items.

Walk it through

  1. Sketch a breakdown of a villa with 3 categories and 8 items; mark which nodes are categories.
  2. For two items, compute sell amount and cost amount from your own quantities and rates.
  3. In the demo, open a project, then Structure, and compare an item's BOQ quantity, sell amount and progress with the roll-up on its category.
Open the live demo

Public demo company, sign in as admin / demoAdmin123. Data refreshes nightly.

Key takeaways
  • Cost goes to items; categories only add up.
  • Progress is weighted by sell value, not averaged.
  • Statuses, the cost lock date and the budget control are set on the project card.

Check yourself

5 questions on this lesson. Not timed, not the exam, and you can try again. Score 60% or more, and read the lesson, to complete it.

1. Cost can be posted in Zeyto Construction & Contracting to:

2. A category in the breakdown can hold budget and be the target of a purchase invoice line.

3. Item W1.1 has quantity 1,200 m2, sell rate AED 85 and unit cost AED 62. What are its sell and cost amounts?

4. A project has item A (sell AED 102,000, 50% done) and item B (sell AED 42,000, 20% done). What is the weighted project progress?

5. Why should the breakdown be designed by what you want to control?

Previous: One ledger, tagged by project and item of workNext: Setting up the company, people and approvals

Practice questions for this module · Printable study sheet