Construction Contracts and Quantity Takeoff

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Construction Contracts and Quantity Takeoff within SmartERP.

Setting up construction projects, MoWUD/PPA standard contracts, FIDIC conditions, and initial quantity takeoffs.

{screenshot:construction-contracts-and-takeoff-overview-dashboard}

2. Prerequisites & Security Access Groups#

• Required Modules: project, smarterp_project_governance, hr_timesheet
• Security Groups:
  • Project User (Technical ID: project.group_project_user)
  • Project Administrator (Technical ID: project.group_project_manager)
  • Timesheet Approver (Technical ID: hr_timesheet.group_hr_timesheet_approver)
• Master Data Dependencies: Project master records, milestone stages, work breakdown structures (WBS), bill of quantities (BoQ), and employee billing cost rates.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the Projects app icon.
4. From the top navigation bar, open Projects → Dashboard → My Tasks / All Projects; Timesheets → Timesheets.

{screenshot:construction-contracts-and-takeoff-app-switcher-navigation}

Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Project / Task Name (Mandatory): Descriptive title of work package or milestone deliverable
   • Assigned Project Team (Mandatory): Lead project manager and operational contributors
   • Planned Dates (Mandatory): Scheduled commencement and milestone completion deadlines
   • Customer / Stakeholder (Mandatory): Client partner linked to project contract and invoicing terms
3. Configure optional operational parameters and localized tags as required:
   • Analytic Cost Center (Optional): Dedicated project accounting account for expenditure tracking
   • Bill of Quantities (BoQ) Line (Optional): Specific contractual BoQ item code for construction tracking
   • Milestone Billing Weight (Optional): Percentage of contract value tied to milestone acceptance
4. Click the Save icon in the control bar to commit the record.

{screenshot:construction-contracts-and-takeoff-record-creation-form}

Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (New / Scoping → In Progress → Review / Testing → Completed → Archived).
• Ledger & System Impact: Timesheet confirmations and project purchases post direct expenditures to the project analytic account, enabling real-time cost vs. revenue margin analysis.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

{screenshot:construction-contracts-and-takeoff-transaction-processing-state}

Construction Contracting Framework in Ethiopia#

Commercial and infrastructure construction in Ethiopia is governed by standard contract conditions issued by the Public Procurement and Property Administration Agency (PPA), the Ministry of Works and Urban Development (MoWUD 1994 Standard Conditions of Contract), or international FIDIC Red/Yellow Books for multilateral donor-funded civil works.

SmartERP Construction integrates contractual obligations, milestone schedules, advance payment guarantees, and performance bonds directly with the project delivery structure.

[project-boq-ipc-lifecycle]

Procedure: Onboarding a Construction Contract#

1. Navigate to Projects > Construction > Contracts and click New.
2. Contract Title: Design-Build Construction of Bole Mixed-Use Complex (G+12).
3. Employer / Client: Select client partner (e.g., Addis Commercial Development SC).
4. Contract Form: Select PPA 2011 Standard Conditions or FIDIC Red Book.
5. Contract Sum: Enter total contract price (e.g., 450,000,000.00 ETB including 15% VAT).
6. Key Contract Terms:
   • Advance Payment (%): Standard 20% (against unconditional Advance Payment Guarantee).
   • Advance Payment Recovery (%): Rate deducted from each IPC (e.g., 25% of gross certificate value until fully amortized).
   • Retention Money (%): Statutory 5% withheld from each progress payment.
   • Defect Liability Period (DLP): 365 Days from Practical Completion Certificate.
7. Click Confirm Contract.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • Project: Flag overdue milestone deadlines (project.ir_cron_overdue_tasks): Runs daily to notify project managers of pending schedule delays
  • Timesheets: Send unsubmitted reminder alerts (hr_timesheet.ir_cron_timesheet_reminder): Runs weekly on Friday afternoon to remind team members
• Custom Print Templates & Reports:
  • Project Status & Milestone Execution Scorecard
  • Interim Payment Certificate (IPC) for Construction
  • Project Timesheet & Resource Utilization Summary
  • Earned Value Management (EVM) Financial Report
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#