Sage Master Builder is Not for Everyone

Sage Master Builder is targeted to general and specialty contractors and home builders doing $3 to $100 million of work per year, but niche markets with higher volume of smaller jobs tends to make Master Builder an appropriate solution for some companies doing at least $1.5 million annually.

There are several other indicators that we consider before recommending Master Builder to a contractor or home builder:

• A willingness on the part of the company management to ensure that the Master Builder implementation is a success and that Master Builder becomes an integral part of the everyday life of the production side of the business as well as the accounting and administrative side. This business solution is a top-down product – it’s most effective when management is involved in the implementation and training process. If the owners are active in production and/or accounting and administration, they also must be interested in acquiring the skills to use Master Builder themselves.
• Recognition on the part of management that full accrual accounting is the best approach for most contractors to manage their business. Other accounting methods, such as cash basis, may indeed be appropriate for income tax purposes, but day-to-day accounting and management of construction companies is best done on an accrual basis. Recognition of income from long term fixed price construction contracts is generally best accomplished with percentage of completion accounting. Master Builder also accommodates companies that must account for the construction of inventory or work in process as appropriate for many home builders.
• Recognition on the part of management that it is just as important to know how money is made or lost on a project as it is to build a project that makes the client happy.
• Recognition on the part of management that the accounting and administration function is an important part of their organization. This is usually demonstrated by an investment in hiring a qualified accountant (or a strong full-charge bookkeeper) with significant experience in the industry.
• An understanding on the part of management that the processes incorporated into an “off the shelf” integrated construction management system like Master Builder are often chosen from among several possible ways of achieving the same result. The developers of Master Builder spent much effort to ensure that the processes adopted represent appropriate best practices for the construction industry. As such, an adaptation of existing policies or procedures to the way Master Builder operates may be necessary.

If we don’t see these indicators, we have to question whether or not Master Builder will be a good fit for the company. More than a few times, we have suggested that a contractor look elsewhere for a solution.