Every construction company must pay its employees, so some payroll costs are unavoidable. But precisely how you should go about paying your employees can change over time. What made sense a few years ago may not be as logical or efficient now. Let’s look at some ways contractors can streamline payroll tasks to keep costs […]
Category: Project Management
Project management solutions may lie in the cloud
A good project manager knows communication is key to delivering a job on time and within budget. When team members can’t easily obtain project data, the result is often wasted time as they track down that information or, worse, duplicate efforts. Meanwhile, profit-eating costs mount and schedule overruns can occur. Many top-level construction companies are […]
Learn the ABCs of activity-based costing
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 […]
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, […]
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 […]
The challenge of quantifying lost productivity damages
Stick around the construction business long enough and it will happen to you. Maybe it already has. We’re referring to the unfortunate circumstance of, through no fault of your own, a project getting severely disrupted. In such cases, you might eventually need to file a claim in court against the owner for lost productivity damages. […]
Improve your bottom line with accurate contract schedules
Tracking the financial minutiae of your contract schedule requires great attention to detail. But do you know what else requires great attention to detail? Construction projects! In the hustle and bustle to win, work on and complete jobs, it’s understandably easy to make accounting mistakes with your contract schedule or to simply lose perspective on […]
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 […]
KPIs for Contractors: Finding Your Way with Mission-critical Metrics
From the baseball field to the boardroom, metrics and statistical analysis have changed businesses nationwide. And the construction industry is no exception. With proper preparation and guidance, contractors can have at their fingertips a wealth of stats-based insight into how their companies are performing — far beyond the bottom line on an income statement. The […]