Contractor Forecasts (Drawdowns)
Purpose:
CDOT utilizes an expenditure-based project funding system. This means that CDOT encumbers funds as they are needed on a fiscal year basis. This expenditure-based system allows CDOT to more effectively use our cash reserves and deliver more projects. The Forecast Record utilizes the construction dates to estimate when funds will be distributed to the contractor.
Important nomenclature:
Forecast - formerly known as Drawdowns in SAP.
Back Loaded Curve - the allocation is weighted toward the end of the cash flow projection range dates.
Bell Curve - the allocation follows a symmetrical bell curve between the cash flow projection range dates.
Front Loaded Curve - the allocation is weighted toward the beginning of the cash flow projection range dates.
Linear Curve - the currency value is allocated by the number of days in each month, between the start and finish dates.
General Approach:
Engineering PMs or appropriate Design Staff enters mandatory milestones in the PMWeb Schedule, focusing on ensuring accurate Advertisement Date, Construction Start, and Construction Finish Dates that determine the Construction Task which enables the Forecast record to identify forecast time limits.
The Construction Contract Cost of the latest approved Project Estimate Capture Record provides the anticipated project cost until Contract Value is available.
Once the contract is executed, the Form 65 Line 7 (Project Commitment Amount, Projected to Complete) projects the remaining construction expenditures.
Engineering PMs or assigned staff select from four standard (Linear, Bell, Front-loaded or Back-loaded) curves.
Staff entering Forecast record information will have the ability to customize the monthly expenditures after the system generates a forecast.
The Forecast record includes 6.5 weeks delay from construction Start to the first drawdown and 13 weeks after construction Finish for the final drawdown.
Best Practices:
During Pre-construction update the forecast at the major milestones, and if there are any major changes to the scope, schedule or budget.
During Construction, make any necessary changes by the second Monday of the month.
A new forecast must be created when there is a change to the construction start or construction finish date(s).
There may be a variance from the monthly forecast to the actual cash out. Due to the potential variance, a new record must be created by copying and updating the most recent record after each contractor estimate paid.
A CMO of greater than 10% of project cost or greater than $100,000 will require a new forecast.
Follow WalkMe When Creating a New Forecast
See Forecast Record Prerequisites, Modifying Forecasts and Additional Field Guidance for more information about the forecast record.
Forecast Record Prerequisites
A. Schedule Prerequisites
The Forecast record utilizes the Construction Schedule task identified in the project schedule.
Before creating a new forecast record, ensure that the milestones and Construction schedule task are identified with the correct "Project Code" and have accurate dates to enable regional and statewide reporting and the generation of the forecast.
B. The Estimate Capture Record or Form 65 Line 7
Two potential sources supply the forecast value in the forecasting algorithm:
The latest approved Estimate Capture record supplies the Construction Contract Cost** line, shown below, in the Forecast record.
The Form 65 value will be used after the contract has been awarded. The value will match the sum of lines 4 (Contract Bid Amount), 5 (Total Plan F/A – Inc MCR & Anticipated CMO), and 6 (Total CMOs & Overs/Unders) from the Financial Statement report in SAP.
The latest approved Estimate Capture record supplies the Construction Contract Cost** line, shown above, in the Forecast record. The 20-10 Construction Contract Cost**, COST CODE 20-10-423110001 provides the contractor's estimated cost and spread over the construction duration utilizing the curve selected.
A project with an executed contract uses the Form 65, Line 7 (Project Commitment Amount, Projected to Complete) to determine contract expenditures or the remaining contract value.
C. Auto-approve Workflow
A record must be approved to be utilized in the region's and state's cash forecasting model. This is completed through a single step workflow.
The workflow locks the record and will not allow any edits.
If edits are required, a copy of the most recent Forecast record can be made to create an updated new record.
Modifying Forecasts
Any forecast can have the monthly estimates modified but the editor is responsible for ensuring all monthly estimate values total the total contractor estimate.
Projects with shutdowns must be edited from the curve types available. When adjusting monthly totals, be sure to redistribute values.
Field Guidance
Here, we will review the purpose of additional fields found in the forecast record.
The Forecast Record includes many standard tabs:
Notes: document and save any notes related to the Forecast record.
Attachments: Attach any documents related to your record in the Attachments tab. These will live with this record in the PMWeb ecosystem.
Workflow: Once you are ready to submit your record for review and/or approval, you'll use the Workflow tab.
Notification: Send notifications to other PMWeb users, sharing your record as needed.
The Forecast record header provide key details to identify the project in the manager page, such as:
Project: Select the desired project.
Record Number: PMWeb will assign a unique record number to the forecast.
Description: Use " YYYY-MM-DD version X" as a standard description. (PMWeb will include the sub-account or Project Control Number and project title on the manager page's "PROJECT NAME" field).
Reference: Select "CURVES" that allocate the cash flow projection range dates in line with how the project anticipates spending funds. (See forecast curves for more information).
Status/Revision: The system defined field tracks the record through an approval process. In the Forecast record, an approved workflow enables statewide and regional reporting.
The Forecast record provides a reminder of standard Prerequisites to consider when creating or editing forecasts.
The Projection Button enables projection dialog which is used to spread the cost of a record line item across one or more periods.
The Details Table Toolbar includes buttons and other controls that are used to take action at the detail level.
FAQs
I created my forecast, but I'm missing the graph & monthly drawdown details I saw in the training Video. What can do to Ensure my project is set-up properly to enable monthly projections and charts?
Review the "CONSTRUCTION PROJECT CODE" in your PMWeb schedule. See Forecast Record Prerequisite (above). Failing to update the "PROJECT CODE" in the PMWeb Schedule results in a forecast without month values or graphs.
Does PMWeb have customized Distribution profiles like the Spendometer offers for SAP?
Today, Engineering PMs or assigned staff select from Linear, Bell, Front-loaded, or Back-loaded curves. The ability to customize the monthly expenditures after the system generates a forecast is also available for staff entering Forecast record information.
I use multiple PMWeb schedules for my project. What can I do to make sure my project is set-up for forecast projections?
Ensure that the "Set As Project Schedule" checkbox is selected. The other projects will be ignored from the forecasting process.
Verify that milestones and the Construction schedule task include the correct project code.
Make sure the project schedule is current by the 2nd Monday of the month.
If multiple approved estimates exist for my project prior to an executed contract, how do I know which one will be used for the forecast?
Selecting a "CATEGORY" in the Estimate Capture record identifies the stage of the lifecycle for a given project estimate. The project may have several estimates from development to award. Regardless of an Estimates “CATEGORY”, the Forecast record will use the 20-10 Construction Contract Cost**, COST CODE 20-10-423110001 from the latest approved estimate prior to award to generate the forecast.
How can I find out more information about PD 703?
Consult with your Business Office or PMO Rep.
As relates to PD 703, the CMO thresholds are as follows for different levels of approval or advice:
Greater than or equal to 15% and greater than or equal to $500,000; or 2) greater than or equal to $5,000,000 above the original approved amount
10% or greater and between $250,000-$500,000 above the original approved amount; or 2) Less than 15% and between $500,000 and $4,999,999 above the original approved amount
Less than $250,000 above the original approved amount; or 2) less than 10% and between $250,000-$499,999 above the original approved amount