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Using PPM to manage construction permits / warranties

Former Member
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We have a telco customer that is asking what can SAP offer re: managing contracts for construction projects.  Internally the thought is we might have a solution that would entail Project Portfolio Management (PPM), Real Estate (??) and ECCThe challenge they need to solve is:

When the carrier is expanding or changing the network, they are required to give a WARRANTY to the local government.  The WARRANTY is like a letter of credit in which the carrier is promising that if they do not finish the project or for some reason they change it, the government can change the WARRANTY and with the money that was set aside, the government can finish out the project.

What this requires is:

- Construction permit has an assigned warranty

- Funds for the warranty are set aside in the vent the carrier defaults on finishing the project

- Project plan is developed that meets the warranty timeframe for completion of the project

We are going to offer them PPM to manage the portfolio and project execution but it will need to have connection to some module that would control the permits.  Ideally the system could automatically propose the requested permits based on some configurable characteristics. Does PPM provide a template that we could do this?  Also the 'permits module' should be able to trigger an accounting posting after the permit is approved.

I do not know enough about PPM to know if it has all the functionality we need?  How does it integrate to ECC so that payments can be posted as the project progresses and/or is completed.  I would assume other industires e.g. utilities would have simliar needs as they build out facilities, but I don't know. I don't know if our Real Estate solutions for contract management would come into play???

Any help that can be provided would be greatly appreciated.

Thanks in advance for your help.

-Terri

Telco IBU

Accepted Solutions (1)

Accepted Solutions (1)

former_member196871
Active Participant
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Hi Terri / Ravi,

Any customer / vendor contract scenario can be mapped in SAP RE-FX. Your specific requirements such as automatic proposal of permits based on specific characteristics and automatic FI postings can also be handled there.

There are security deposit contracts that can be separately created for managing Warranties and linked to the main contract. Real estate objects can be linked with Project WBS (PS Module) for reporting purposes, settlement of costs / revenue on projects can be easily managed and settlement can also be carried out.

I am not aware of any direct integration point between SAP PPM and SAP RE-FX.

Regds,

Hardik Sharma

ravi_ekambaram
Active Contributor
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Thanks Hardik..

PPM is not having any direct integration with RE-FX but through SAP PS this can be integrated.

ashwinipingle
Participant
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Hello Ravi E,

I happened to look at your response when I was searching for discussions on "PPM for Construction Companies". I have a similar scenario of a Construction+Real Estate company for which PPM needs to be implemented. Can you please provide any more insight into how RE-FX can be integrated with PPM via PS module? Have you implemented this? Needed an overall picture of what can be realistically done and helpful for Construction+Real Estate company. e.g. typical dashboards related to costs, etc.

Answers (2)

Answers (2)

ravi_ekambaram
Active Contributor
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Hi Terry,

If your queries are answered, please close the thread by choosing the correct answer. If you have resolved your query on your own, then share with the community and choose your post as correct answer.


This helps members to know quickly the answers for the post for which they are searching.


Refer below blog for further details on closing the thread.

http://scn.sap.com/community/support/blog/2013/04/03/how-to-close-a-discussion-and-why

Regards,

Ravi

ravi_ekambaram
Active Contributor
0 Kudos

Hi Terri,

Definitely PPM can be used here...

PPM is having a very good integration with SAP project systems(PS) to address all the features available in PS especially on 'Controlling'.

PS module is having tight integration with many modules like FI & CO, Materials management, Sales and distribution, Flexible real estate management etc. Almost all features can be used in combination with PPM features.

Permits/contract management - I do not have much idea, may be RE-FX module consultants can comment on it. Looping

Regards,

Ravi