Your latest project might be running on budget, but how can you determine whether your work in progress is really boosting profits or hurting the bottom line? Or, if a job is exceeding forecasted costs, how do you break it down to identify the problem? Many construction companies have addressed such issues by measuring the […]
Category: Bidding
Could a CRM system help me win more jobs?
My construction company recently celebrated its 15th year in operation and, even better, business is really heating up. My concern is that, with this lengthy history and sizable client list, so much information seems to be falling through the cracks. We try to track everything through a shared spreadsheet, but it’s kind of a mess. […]
Whipping up more profitable jobs with WIP reports
Jobsites generate many things — dust, rubble, scrap metal. But they also generate a lot of information. And extracting the right financial data from an ongoing project in an accurate, timely and easily digestible manner is critical to maintaining that job’s profitability and avoiding losses. Depending on the size and nature of your construction company, […]
Think about licenses before working out of state
Construction markets can turn on a dime. One new manufacturing plant or infrastructure project can transform a sluggish region into a booming economy. Problem is, these hot markets often ignite across state lines. In such cases, you may rush to commit valuable time and resources to preparing a bid. Among the many small details that […]
Using your financial statements to recalibrate your estimates
Offering a fair price for quality workmanship lies at the heart of every contractor’s long-term success. Finding this critical balance begins with the estimating process. Over time, however, even the most sound approach to estimating can slip a little bit and require recalibration. The good news is that the tools for the job lie right […]
Play to win: Profitability tips for today’s construction companies
In the construction business, like most others, the focus is on “being competitive.” But what does this really mean? For many contractors, it means staying in the game — turning a profit when you can but at the very least breaking even. This is particularly the case when jobs are scarce or perhaps you run […]
Bidding made better with go/no-go analysis
To bid or not to bid? For contractors, this is always the question. When times are tough, you may be tempted to bid on anything and everything. During a more stable economic climate, however, you can and perhaps should be as selective as possible. How to make this critical decision is the question beneath the […]
Keeping a close eye on contract allowances
In construction, and life, uncertainty leads to conflict. When two separate parties are unsure about something, they could very well reach two different conclusions and end up at odds. So it goes on many construction projects — especially homebuilding jobs — when contract allowances are involved. So if your business deals with contract allowances regularly, […]
Job Rescue: Best Practices when Playing the Hero
A funny thing has happened on the way to today’s improved economic environment for construction. Many developers and contractors have leapt unprepared into big projects and found themselves unable to complete the work. These misfortunes create opportunities for other construction companies to step in and “play hero.” But before you don the red cape, be […]
Don’t Miscalculate the Accounting Impact of Change Orders
Change orders are a mixed blessing. On the one hand, they present the opportunity to make more money on a construction project because of the additional or more complex work involved. On the other, if they’re mishandled, change orders can lead to conflicts, confusion and even lost money should a change go unpaid. One place […]