Product Basics

Software name and manufacturer/vendor:

Sage Timberline is a construction management software system that provides functions

that include takeoffs, cost estimating, project management, document management,

service management, and accounting. Recent upgrades to the software have changed

the name to Sage 300 Construction and Real Estate, or otherwise known as Sage CRE.

The vendor for this software is Sage Software, Inc., 15195 NW Greenbrier Parkway,

Beaverton, OR 97006 and can be contacted toll-free at 1-800-628-6583.

Product website or availability information:

The primary website for Sage CRE is http://na.sage.com/us/sage-construction-and-real-

estate. Purchase of the software can be obtained directly from the vendor or through

other software brokers such as http://www.softwareadvice.com/construction. There is an

additional fee involved for software referrals, so it is usually more cost effective to

purchase direct from the manufacturer.

Primary target market or industry:

Sage CRE is primarily focused on the construction and real estate industry, although

various accounting firms and finance companies that specialize in the construction

industry and property management also benefit from its usage. Sage Timberline is geared

toward giving mid-sized and large construction and real estate managers and developers

a comprehensive solution for managing the financial and production site of their business

(O’Bannon, 2012). Engineering consulting firms, manufacturing, general contractors,

construction management firms, home building, residential remodeling, and real estate

developers amongst others utilize its features to help sustain market leadership in the

construction arena (Sage Software, Inc., 2013). Payroll and inventory managers involved

in material goods, work labor and services (GWS) are also target areas since they can

track and monitor time and supply expenditures as part of procurement management.

Functionality

What does it do?

SAGE CRE is a fully integrated Project Management Information System (PMIS) that

serves as accounting and operations software with modules such as accounts payable,

general ledger, accounts receivable, and payroll processing. In addition, the software

includes industry specific capabilities such as AIA/item billing, materials or inventory

management, and job costing. Solutions are tied together into a comprehensive job-

based accounting and cost control system designed specifically to help increase

operation efficiencies across the board. With Timberline's extensive custom reports,

project managers are able to see actual cost on all levels of the project to assess and

manage expenditures against project baselines. A job costing module screenshot of the

software is shown below that compares actual labor hours with estimated values as well

as provides change management for contractual revisions.

The following are some of its comparative advantages (SSOE Group, 2014):

Tracks and communicates perfomance trends. Similar to Microsoft Project and

@Risk, the software provides control modules and monitoring reports to control

schedules, resources, and costs.

Enables an effective work-breakdown structure. The software provides a means to

break the scope of work into smaller, manageable pieces in order for the project

manager to control cost, resources, and schedule.

Provides improved decision making. Detailed reports developed from the software

allows a project manager to identify areas of underperformance as well as predict

future variance from baseline.

Earned-value analysis. The software modules compare baselines to actuals to allow

the project manager to better manage the progress of the project and subsequently

increase performance.

Collaboration. Through the Sage Construction Anywhere features of the software;

the posting of project information, creation of correspondence, cost tracking, and

other vital project information concerning baseline can be shared easily with other

stakeholders with cloud-based capability.

A service management module screenshot of the software is shown below that assesses

inventory and work order comparisons utilizing Lean principles for project control to help

eliminate or reduce waste.

Construction can be a risky business, but Sage CRE can help manage risk more

effectively by limiting the threat of subcontractor and vendor noncompliance. To

accomplish a form of risk analysis, the software helps project managers provide contract

administration to hold vendors accountable for lien waivers and certified payroll reports

through the following software features (Sage Software, Inc., 2013):

It tracks compliance with global and job-specific lists for all subcontractors and

vendors.

It empowers operations-based job site managers to manage payroll expectations.

It controls tolerance levels by compliance item type throughout the invoice process.

It can alert the project manager through compliance reports and inquiries to block

payment generation based on noncompliance items such as lien waivers, reports,

insurance certificates, etc.; thereby giving the project manager greater control.

It can provide communication protocol for the project manager to assess RFI’s

(requests for informatiion) in order to address concerns and to avoid schedule

delays.

Sage CRE is also setup to simplify but track and monitor how projects are managed.

The software modules and interface capabilities enable personnel to be kept informed by

providing reasonable access and integration of project data for cost tracking, contract

compliance, and document management. It is essentially a centralized source of

information to have a complete and current picture of any project, and can easily control

the change management process by identifying potential change orders more timely and

responsive, with project information kept current.

The following screenshot is a module utilized for processing RFI’s and document

tracking, and demonstrates the features and efficiencies of the software.

The following are some of its features and efficiencies that are available through its

project management module, but not necessarily evident from the screenshot (Sage

Software, Inc., 2013):

Creates, tracks, and distributes documents using automated delivery methods such

as email and fax direct from an entry screen.

Controls the change order process through quick identification of job cost data, and

is integrated through stakeholders for maintain project commitments.

Manages cash flow and profitability by controlling budgets, costs, schedules, and

revenue.

Develops prime contracts and can be released to others for review and approval.

Assesses subcontract and purchase order status, invoicing, and necessary changes.

Sets up jobs into one centralized location, and creates a job directory for tracking

and communciation.

Sets up specification sections for project tracking and compliance measures.

Logs project related documents such as email, Word, or Excel documentation.

Documents and coordinates the distribution of drawings and shop submittals.

Creates meeting agendas, discussions, and action items.

Secures access to information through the project manager and assigns tasks and

abilities by individual or by the job.

Without purchase of the software, a thorough investigation of the software capabilities is

limited to that which is only available online or through document research. However,

there are several video demonstrations through YouTube that can be viewed to help

provide further perspective on how to use the software and what it can do. The following

videos are just a sample of those available, but are offered as a class demonstration for

the project management module and how it connects with other system modules within

the software:

Sage Timberline Demo Introductory:

http://www.youtube.com/watch?v=CdRtZcqKa3I

Sage Timberline Desktop for Project Managers:

https://www.youtube.com/watch?v=Anpbyhv42ZM

Sage Timberline Project Management: Class 1 PJ Setup

https://www.youtube.com/watch?v=jhdbR5W-Ze8

Sage Timberline Project Management: Class 2 Contract Setup

https://www.youtube.com/watch?v=vaVLK9lfRMk

Sage Timberline Project Management: Class 3 Document Control

https://www.youtube.com/watch?v=1eqwzbQusZQ

Sage Timberline Project Management: Class 4 Contract Control

http://www.youtube.com/watch?v=J30BTGcoHwI

Is it PC-based, server-based, “cloud based”, etc.?

Sage Construction Anywhere is a separate cloud-based feature of the Sage CRE

software to promote collaboration and communication between the field and the office. It

helps to mobilize project information and eliminates gaps and delays that may occur

between the field and the office. It is supported by the Microsoft Windows Azure hosting

platform, which is run in data centers managed and operated by Microsoft Global

Foundation Services (GFS) to ensure better reliability and confidentiality (Sage

Software, Inc., 2014). The benefits of the cloud are leveraged through the software to

mobilize project information, simplify field-to-office communication, and further

streamline operational processes that are key dependent on job costing and extracting

and anlalyzing payroll field data.

The software system opens into a very attractive and easy-to-use interface that provides

extensive user customization options. Users can tailor the interface to their needs in an

individual PC-based situation, derived from an internal or external server, or through

internet “cloud-based” format; and can also customize screens to include links to

functions and external websites (O’Bannon, 2012). There are security settings in place

to allow individual preferences to project information for key project stakeholders.

Is it stand-alone product or is it an add-on to another system product?

Sage Timberline can be used as a stand-alone program or networked across all users

within a firm. It is developed on a Microsoft.NET platform and offers multi-location

support as well as remote access tools and mobile applications.

Other relevant information:

The Sage Estimating module (formerly Timberline Estimating) is a separate program that

can be integrated with other modules of Sage CR, but also provides integration with

Excel, as well as RS Means Cost Accounting Data. The software also supports

conceptual estimating, and proposal generation, but is a functional automated means of

advanced estimating for project take-offs. Construction firms interested in the

construction estimating application will also likely want to purchase the construction

takeoff application. However, the primary limiting factor for obtaining this software is

revenue. Sage CRE with its estimating capabilities is best suited for companies that run

operations of at least $1 million due to the software cost (Sage Software, Inc., 2013).

Construction firms beyond this benchmark will find this solution to be suitable and

acceptable for achieving MARR and an acceptable benefit-cost ratio. This is further

discussed in subsequent sections of this report. A screenshot of the estimating module

is shown below that reflects how task activities are itemized and valued in the work

breakdown structure of a project.

Sage Timberline Estimating offers tools for automating many processes. The estimating

spreadsheet system offers a customizable interface that shows all related factors,

including sortable columnar data for takeoff quantity, labor quantities and prices,

equipment and material costs, and other information; with the spreadsheets linked to

several extensive databases such as Excel, among others. Users can do quick takeoffs,

adding items to estimates individually, or use assembly/group-based takeoffs or model

takeoffs to start an entire project based on templates (O’Bannon, 2012). More detailed

information on Timberline Estimating can be found at

http://www.sagetimberlineestimating.com/Solutions.

Tie to Project Control

How does this software tie into project control?

The basic functions of project management include planning, organizing, leading,

directing, and controlling with measurement functions included. With regards to control,

it is important that any software utilized helps to establish guidelines for tracking and

reporting, categorize control points (i.e. measure and evaluate), and identify

implementation processes (i.e. corrective action). This is where the Sage CRE software

modules contribute to project control. Since work sampling is required as a means of

measurement, the service management module enables monitoring and measurements

of equipment utilization, allows for unavoidable delays, and helps maintains work

standards – tieing contractual obligations to the work. According to the course text, work

sampling or measurement is a core competency of project management, and is an

essential component to achieve organizational goals and profit increases. Work

sampling is useful for clarifying the processes and requirements of project performance,

with task observation within the software as a basic requirement for project control.

The overall benefit of performance control is a means to measure work so that it can be

improved. Work measurement in the job costing module is used as a tool or control to

improve project performance at each activity level. Controlling these elements is a key

to improved productivity and project performance, and is useful for measuring indirect

work and service activities. In this manner, the performance controls through

administration notifiers in the software can help determine profits, minimize delays,

enable timely project status information, and allow communication on how much time

has been attributed to a task activity or if it is “out of control”.

The software utlizes a form of Six Sigma methodology and a comparative DMAIC

(design, measure, analyze, improve, control) project sequencing to maintain or regain

control. Through the project management module, the software inputs enable a

sequence of phases and framework to assess outputs against its inputs, to track and

measure performance to better understand the causes and effects of inputs and outputs

so that action can be prioritized, and helps formulate corrective actions through

notifications to eliminate waste. The software also utilizes statistical tools such as

process mapping, histograms, and Pareto diagrams and control charts that are linked

with Excel in the software programming to reduce the probabilitiy of failures and

redundancies in a project. Using Kanban practices, the software also consolidates

purchasing and replenishes inventory items through a single information source or PMIS

through its buyout, purchasing, and inventory applications.

Project control within contract administration belongs to the monitoring and controlling

group of the project management process. This is mostly accomplished through the

service management module of the software. This module controls aspects of the

project such as providing on-going comparisons of actual project activities against

baseline scopes, tracks changes and accomplishments for compliance with stipulated

contract requirements, tracks customer invoicing, and bill payments. Through the

project control mechanisms of the software, contract administration monitors

performance and ensures that all contract requirements are met. Within this control

module, the progress of the contract can be monitored, costs will be tracked, outputs

measured and managed, changes approved or disapproved, corrective action taken,

and status reported.

Finally, the job costing component and module of the software provides key performance

indicators (KPI’s) important to project control. The KPI’s are quantifiable, and measure

project performance or progress towards project objectives linked to other input modules

of the software. Not unlike any other computer programming, the outputs are only as

reliable as the inputs provided. Therefore, it is important that the software enables all

aspects of project management linked together to provide the indicators necessary to

measure performance and project progress. In this manner, trade-off decisions can be

made between various control actions that may be needed since everything is

configurated and centralized into one integrated project software package.

Cost/Benefit Analysis

How can using this product make project management easier?

The benefits of this software includes improved communication between project team

members and stakeholders, eliminates duplicate efforts since data can be shared

between departments and work processes, and better control is gained through the

change management process. Since projects are the means to which processes are

systematically changed, the software can provide a bridge between planning and doing

to better ensure project success. Through automation and better accounting of project

tasks, the project manager can have easier and quicker access to information and

tracking mechanisms to ensure that project objectives are met – bringing planning and

control together. Strategically, use of the software product can fundamentally achieve

project success with more efficiency, as long as inputs are reliable. It is important to

note that the project manager must ensure that the data is reliable and accurately

baselined so that the product can meet its intent of beneficial project management rather

than introduction of risk and critical errors in the project implementation process.

However, since project data is centralized within this software and can be linked to other

statistical tools and techniques, it will be easier to conduct an earned value analysis of

projects to provide an overview of projected future performances.

Are there any documented savings from using this product?

According to SSOE Group (2014), approximately 187% of their fee was returned to their

clients last year in the form of project savings as a direct result of utilizing this software

control. This can be significant when 10% fee costs are imposed for project

management. In other words, a $10 mil project may require $1 mil in fees. If project

savings result in 187%, then the customer can realize a savings of close to $2 mil.

Obviously, the cost of the software is minimal in comparison to its potential benefits.

Any other relevant information as it pertains to benefits?

The following are some of its comparative benefits in using the software to assist in the

project management business (Aktion, 2011):

Enables cross-functional reports and forecasts to help enhance decision-making.

Streamlines workflow by removing bottlenecks and breaking down barriers between

organizational departments.

Provides users with easy access to the features and frequently used reports.

Provides management with instant feedback on business profitability.

Improves accountability and efficiency at every level of the project organization.

The following are some of its comparative benefits to improve profitability and cash flow

in projects through the use of the software (Aktion, 2011):

Gains control of project details with integrated job cost capabilities.

Proactively identifies project issues and potential cost overruns and makes

corrections.

Compares up-to-the-minute actual costs with budgeted costs.

Controls RFIs, construction change orders, and change requests.

Reduces risk with job-level security and an audit trail for each transaction.

Determines the firm’s immediate cash position and eliminates uncertainty.

Manages activities across multiple divisions or companies.

The following are some of its additional benefits to ensure projects are on-time and on-

schedule with the software (Aktion, 2011):

Tracks and manages costs, contracts, and documents—the three pillars of project

management.

Coordinates labor, material, equipment, and subcontractors.

Creates, tracks, and receives important project-related documents.

Efficiently manages the change process.

Improves communication and keep all key stakeholders in the loop.

Reduces the risk of litigation through improved communication and documentation.

What (if any) does it cost to obtain this software?

Sage Timberline is one of the premier construction management systems on the market,

providing an exceptional user interface and customization capabilities, with powerful

database-driven estimating features, powerful job costing, exceptional reporting and very

strong business management and accounting tools. Program pricing varies based on the

specific module set and user base for each firm, with investments starting around

$10,000 on average. According to sales agents from www.softwareadvice.com, the

software can realize a $1,700 to $2,000 per user cost, or include a one time setup fee of

$1,500 with a annual fee of $350 per month per user with unlimited feature upgrades.

The latter option would be the best alternative for firms that have six or more system

users in order to have the competitive upgrade and feature advantage.

Are there any academic license options available?

There are no academic licenses available, although there are discounts for non-profit

organizations as well as educational institutions. These discounts are offered on a case-

by-case basis. No exceptions to licensure are available since the software is

proprietary, with patent conditions that apply to the organization.

Any other relevant information as it pertains to software product costs?

To provide a more complete software system, it is advantageous to purchase the Sage

Estimating and Sage Construction Anywhere programming to integrate its features with

Sage CRE. According to feedback from various companies posting on Timberline’s

website, this can cost an additional $5,000 depending on the size of the firm. However,

it is important that whatever license agreement is pursued, that feature and future

upgrades are included in the contract and pricing.

Recommendations

Is it a worthwhile investment from the perspective of an interested company?

Using a cost-benefit analysis analyzing present worth (PW) as a method for determining

cost effectiveness, it is interesting to note how payback can be achieved utilizing the

software. In order to determine if the system can achieve a minimum attrative rate of

return (MARR), the option would be acceptable if the benefit-cost ratio equals or

exceeds a factor of 1.0. At an estimated MARR or interest rate of 7%, the uniform series

present worth factor is 4.100 for a 5-year typical useful life of the system. Using the

assessment fees of the software previously mentioned for a six-member firm user, the

following options can be considered:

Benefit-cost ratio B/C = PW of benefit/PW of costs ≥ 1.0. The following calculation sets

the equation equal to 1.0 to find the savings that must be realized:

Option A: $1,700/user. (Savings)(4.100) = $1,700(6). Savings ≈ $2,490.

Option B: $1,500 base + $350/user(5years).

(Savings)(4.100) = $1,500 + $350(6)(4.100). Savings ≈ $2,470.

Based on the above, a firm must be able to realize a net savings of approximately

$2,500 per year to make decisions to acquire the system. This shouldn’t be much of a

concern, considering the benefits for project control that can be achieved. There are

many methods to assess the cost-benefit of using the system, and several variations can

be realized depending on the MARR chosen, number of users, and whether the system

can meet or exceed its useful life. Nonetheless, once more than six users are on the

system, the best option would be to choose Option B since an advantage of upgrades

can be realized, and the cost effectiveness is improved for seven users or more.

Is it a worthwhile investment for a student taking TCM 545/645 next summer?

Since Sage Timberline is one of the premier (but expensive) construction management

systems on the market, it is more conducive to providing a user interface for

organizations or mid-to-large size project firms or companies, not necessarily individuals.

Therefore, the software can be rather costly to acquire for a student desiring to improve

project management skills through this course.

Other Information

Hardware and Software Requirements:

Generally, Microsoft Office 2003 or later is the operating software required to support

Sage CRE software, but is not compatible with any 64-bit Microsoft Office. Windows XP

Professional SP3 is the earliest allowed operating system, however technical support is no

longer offered, and Windows 7 is the preferred supported system. It is important to note

that Sage CRE is not yet supported on Microsoft Server 2012 or Windows 8 on

workstations. With regards to internet compatibility, Microsoft Internet Explorer 6.0

(Service Pack 1 or later) is recommended. The following hardware is also recommended

(Sage Software, Inc., 2014):

Service quad core processor with a minimum of 3GHz or a workstation processor

with a minimum of 2GHz.

Server with 8 GB RAM and/or a workstation with 4GB RAM.

Server or workstation with 3.5 GB available disk space; or workstation on server

with 1.5 GB available disk space.

Project estimating requires more space, and a 3.5 GB disk space hard drive must be

available for a workstation or stand-alone computer.

DVD-ROM drive; and network and sound adapters.

USB port at server for USB security key with USB port or digitizing tablet connected

to RS-232 serial port configured as COM1 or COM2.

SVGA monitor (1024 X 768 pixels or greater).

Scanner that is TWAIN compliant (required to scan documents with Document

Management module).

References:

Aktion Associates, Inc. (2011). In Sage Timberline Office – The Gold Standard. Retrieved

July 20, 2014, from http://www.aktion.com/about-aktion/aktion-

library/SageTimberlineOfficeBooklet.pdf.

O'Bannon, I. M. (2012, February 14). In 2012 Review of Sage Timberline Office. Retrieved

July 20, 2014, from http://www.cpapracticeadvisor.com/article/10629184/2012-review-of-

sage-timberline-office.

Sage Software, Inc. (2013). In Sage 300 Construction and Real Estate. Retrieved July 20,

2014, from http://na.sage.com/us/sage-construction-and-real-estate.

Sage Software, Inc. (2014). In Sage 300 CRE System Requirements – Integrated

Solutions. Retrieved July 20, 2014, from

http://www.integratedsolutions.net/Sage/STO_System_Requirements.pdf.

SSOE Group. (2014). In Project Controls – Making Clients Successful. Retrieved July 20,

2014, from http://www.ssoe.com/wp-content/uploads/ProjectControls.pdf.