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Lesson # 6 - Successful Accounting with Contractors

And this time: Tips for Successful Accounting with Contractors

Successfully complete a construction project

The contracting phase with the contractor is done during the execution, and comes to an end only after the execution phase is completed.

When the contractor submits his expenses for payment, this is the signal for the beginning of a "battle of mind" between him and the supervisor and project manager.

The contractor, on his part, will try to expand the "exceptions" section as much as possible - the section to which the work carried out during the work is drained due to unexpected constraints.

The contractor will try to prove how much the extra work has increased the expense account, and now it deserves a double and even triple reimbursement.

In the meanwhile, the project manager is expected to check and verify the veracity of each section, in order not to exceed the approved budget framework on the one hand and not to subordinate the contractor on the other.

This is where the project manager's professionalism and skill are expressed. Only a knowledgeable project manager can measure, test and litigate with each contractor on each section and find the golden path.

Professional project manager will take care to create and maintain a good relationship with the contractor all along, in order're all set the stage Reckoning good spirit and endeavor agreements and dispute settlement.


Prior to the appointment of a project manager, check his credibility. If you've checked - trust it. Remember - the job of the project manager is to take care of the project. There is not always an identity between the good of the project and your good.

The idea is to prepare a document that will go through every type of control even in a long time

We have already happened in the past, after a long time, a visitor from one of our largest institutional clients, came as part of routine checks carried out and asked to conduct a check on a particular project account.

Measure in the area what was done according to the required specifications and rules of the profession, for example: When measuring the area of ​​walls for painting, openings should be reduced unless they are less than 20 cm x 20 cm...


Require the contractor to submit the excel computerized quantity concentrations

Require the contractor to submit computerized accounts on dedicated software - such as: Benarit, Ramdor, Palm

Exceptional works must be submitted in an orderly price analysis form and attach all required paperwork, including photo attachment, special details not included in the original quantities.

Sign a contractor on the Claim Absence Form in a final account.

It is important to prepare all the account paperwork for audit as if it is being held.

After closing the account, the account must be crunched on all its documents.

Yaron Ben-Menashe and Eli Gottlieb

Maof Engineers Ltd.

Example of a contractor account

Exceptional requests

We remembered a beautiful sentence

"Price is what you pay. Value is what you get" 

(Warren Buffett)

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