“Raising an Order = commitment to pay”
Muli is a commitment accounting solution. Managers establish Budgets, the sum of which is equal to the contract value, or for internal projects, the Board’s approved value.
The commitment is by way of:-
Purchase Order – (Supply of goods only).
Subcontract – (Any supply involving on-site labour or special conditions).
Labour Order – To allow company personnel to be allocated (costed) to a project.
Equipment Order – To allow company assets and equipment to be charged to a project.
While Management may have imposed the project budget, the project team is responsible to ensure they:-
Confirm the budget allowed (for the scope of works to be let).
Confirm the forecast final cost (for the scope being let).
This may be entered in 2 parts:-
Risk2Do – Provision for items not in the initial Order/Subcontract but need to be addressed for the project to be completed.
The MULI framework monitors:
Trade Package identification and scope
Subcontracts are signed and returned
Work method statements are provided
Insurance Certificates are provided
No payment to revised contract value until a Certificate of Release is completed.
When you are working with some Government organisations, they may require you to obtain Subcontractors Certificates that show all employees, suppliers and statutory obligations are up to date.
MULI will provide a control method where the Certificate is attached to each pay advice and until this certificate (included in the Remittance Advice) is received back, the next payment is delayed until receipt of same.