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Work Items & Budgets

Work Items define the tasks and deliverables that will be assigned to subcontractors. They must be created and budgeted before any subcontractor engagement can begin.

Work Items and consumption tracking page showing work groups, items, budgeted quantities, and consumption details
Work Items and consumption tracking with budget and progress details

What are Work Items?

Work Items are the discrete tasks, activities, and deliverables that make up the scope of work to be subcontracted. They represent what will be performed by the subcontractor and form the basis for budgeting, requisitions, work orders, and measurement tracking.

The execution strategy for each project determines how Job Scopes are subdivided into Work Items. A well-defined set of Work Items enables clear communication with subcontractors, accurate costing, and precise progress measurement.

Work Item Structure

Work Items are organized in a two-level hierarchy:

Work Groups

Work Groups are logical groupings of related work. They provide an organizational layer that makes it easier to manage large numbers of work items. Examples of Work Groups include:

  • Civil Works
  • Structural Steel
  • Electrical Installation
  • Plumbing & Sanitary
  • Painting & Finishing
  • Earthwork & Excavation

Work Order Items

Within each Work Group, individual Work Order Items define the specific tasks. Each item includes:

Field Required Description
Item Description Required Clear description of the work to be performed (e.g., "RCC Column Casting M25 Grade")
Work Group Required The parent Work Group this item belongs to
Unit of Measure Required The unit used for measurement (e.g., Cum, Sqm, Rm, Nos, Kg)
Estimated Quantity Optional Planned quantity of work based on project scope
Specifications Optional Detailed technical specifications, standards, and quality requirements

Creating Work Items

  1. Break Down the Job Scope Review the Job Scope and identify which portions of work will be subcontracted. Break these down into discrete, measurable Work Items that can be clearly assigned and tracked.
  2. Organize into Work Groups Create Work Groups to logically categorize the Work Items by trade, discipline, or work type. This organization simplifies management as the number of items grows.
  3. Define Individual Items Within each Work Group, create the specific Work Order Items with descriptions, units of measure, and estimated quantities. Be precise in descriptions to avoid ambiguity during subcontractor engagement.
  4. Review and Finalize Review the complete set of Work Items to ensure nothing is missed and there is no overlap or duplication between items.
Foundation for Everything

Work Items must be predefined before creating Work Requisitions. The quality and completeness of your Work Item definitions directly affects the accuracy of budgets, the clarity of RFPs sent to subcontractors, and the precision of progress measurements.

Creating and Approving Budgets

Once Work Items are defined, a budget must be created and approved before any procurement activity can begin. The budget establishes the financial envelope for subcontractor spending.

Budget Process

  1. Create a Budget For each Work Item or group of items, create a budget specifying the estimated unit rate and total estimated cost. The budget should align with the overall project estimate.
  2. Submit for Approval Submit the budget for approval through the configured workflow. Budget approvers verify that the allocated amounts are reasonable and within the project's financial plan.
  3. Budget Approved Once approved, the budget becomes the spending ceiling for the associated Work Items. All Work Requisitions and Work Orders are checked against this budget.

How Budgets Control Spending

The approved budget acts as a financial control mechanism throughout the subcontractor workflow:

  • Work Requisitions — Cannot be created for Work Items that do not have an approved budget
  • Work Orders — The WO value is checked against the available budget; orders exceeding the budget may require additional approval or budget revision
  • Variance Tracking — The system continuously tracks actual spending against the budget, enabling proactive cost management
  • Budget Revisions — If project scope changes require additional spending, budget revisions can be submitted and approved through the same workflow
Budget Must Be Approved First

Work Requisitions cannot be created until the budget for the relevant Work Items has been approved. Ensure budgets are prepared and submitted early in the project lifecycle to avoid delays in subcontractor procurement.

Linking to Job Estimates

Work Item budgets integrate with the project's overall Estimates & Budgets. This linkage provides:

  • A clear view of how subcontractor costs contribute to the total project cost
  • Budget utilization tracking at both the work item level and the project level
  • Variance analysis comparing estimated costs with actual subcontractor commitments
  • Data for project profitability analysis and forecasting