Question 1

What QuickBooks version should a contractor choose?

Julia Thompson · Accepted Answer

Most contractors should use QuickBooks Online Plus or Advanced. These versions support job costing, project tracking and detailed financial reporting – all essential for construction businesses. Smaller contractors may start with Plus, while growing teams with multiple users, complex reporting needs or higher transaction volume often benefit from Advanced.

Question 2

Can QuickBooks track subcontractors and 1099s?

Julia Thompson · Accepted Answer

Yes. QuickBooks for contractors allows you to set up subcontractors as vendors, track payments and prepare 1099 reports at the end of the year. Contractors can assign subcontractor costs to specific jobs, helping ensure labor expenses are accurately reflected in project profitability.

Question 3

How do contractors categorize materials and labor in QuickBooks?

Julia Thompson · Accepted Answer

Contractors typically categorize materials and labor using cost categories and expense accounts within QuickBooks. Labor costs can be tracked through payroll or subcontractor expenses, while materials are categorized as job-related expenses and assigned to the appropriate project. Consistent categorization is key to accurate job costing and reliable financial reports.

Question 4

How does Buildertrend and QuickBooks sync eliminate double entry?

Julia Thompson · Accepted Answer

The Buildertrend and QuickBooks integration syncs key financial data between systems, so contractors don’t have to enter the same information twice. Jobs, customers, invoices and payments flow between Buildertrend and QuickBooks automatically, reducing errors and saving time. This connection ensures financial data always matches what’s happening on the job site – without manual reconciliation.

Question 5

Are RFIs contract documents?

OGM Staff · Accepted Answer

Yes – contracts require parties to be notified when errors, conflicts or omissions are found. Not only does the RFI document a process, but it’s also a contractual obligation and fundamental process for successful delivery of projects. An RFI is used extensively in the residential construction industry.

Question 6

What is the purpose of an RFI?

OGM Staff · Accepted Answer

The purpose of an RFI is to document the asking and answering of a specific question related to the construction project. The question may address an information gap, unclear wording or an issue that requires some sort of resolution both before and during a construction project.

Question 7

Why do some RFIs go unanswered?

OGM Staff · Accepted Answer

Some RFIs go unanswered because of the following:

The request required too many resources (time, costs, etc.)
The answer is found in other documents
The RFI was improperly addressed
It's missing information
The RFI did not follow the process

Question 8

What does RFI stand for?

Emily Johnson · Accepted Answer

RFI stands for Request for Information. In construction, an RFI is a formal way for contractors, subcontractors or project stakeholders to ask questions when project details are unclear or conflicting. It helps ensure everyone is working from the same playbook, reducing the risk of mistakes, delays and expensive rework.

Question 9

Why are RFIs important in construction projects?

Emily Johnson · Accepted Answer

RFIs are important because they act as a safety net for communication. Construction projects are complex, and even the most detailed plans can leave room for interpretation. A well-documented construction RFI process ensures questions are answered quickly and consistently, so builders and remodelers can avoid costly misunderstandings, keep projects on schedule and maintain client trust.

Question 10

What should I consider before creating a construction contract?

Emily Johnson · Accepted Answer

Before creating a construction contract, home builders should take the time to thoroughly review the project scope and all associated costs and specifications. This includes ensuring that each party knows exactly what is required of them, such as materials, labor, and payment terms. Additionally, home builders should explicitly articulate any contingencies or potential changes that could occur during the course of the project.

Question 11

Do I need a lawyer to create a construction contract?

Emily Johnson · Accepted Answer

Home builders may find it beneficial to consult with a lawyer when creating a construction contract. A lawyer can provide valuable guidance and expertise on the legalities of contracts and help to ensure that relevant terms and conditions are effectively included.

Additionally, having an attorney review the document before signing can protect home builders from any unexpected liabilities, such as unseen issues with material suppliers or disputes over payment. Taking the time to properly craft a contract can help to avoid costly disputes and delays throughout the project, saving both parties from unnecessary stress and frustration.

Question 12

What are some construction contract mistakes to avoid?

Emily Johnson · Accepted Answer

Home builders should take care to avoid common mistakes when it comes to construction contracts, such as failure to include adequate contingencies, incomplete description of services or materials and inadequate budget estimates.

Failure to include contingencies in a contract can put a home builder at risk for unexpected changes that could lead to additional costs or delays.

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