Job Cost Reporting - Can You Answer These 10 Questions
Do you feel like you are forced to make critical business decisions with incomplete information? Many construction company owners don't feel 100% confidence in their day-to-day decisions because they lack visibility into the key performance metrics driving their business. This is particularly true when it comes to job cost and job profitability data. Accurately recording the costs associated with each job is essential, but being able to quickly retrieve that information and using it to make informed decisions is equally important.
This is where tracking job cost information in spreadsheets often falls down. Some companies spend so much time creating and reconciling spreadsheets that they miss out on opportunities. Even worse, they may miss early warning signs that a particular job is in trouble and needs attention.
Is your job cost system helping you make money or is? Use the questions below to evaluate whether you can (and how quickly) retrieve important decision making information from your system:
- How do my budgeted costs compare to my actual costs?
- What are my costs for a particular job phase or cost code?
- What is my labor productivity, including labor's effect on total job costs?
- What are my overbillings vs underbillings?
- What are my committed costs?
- What was my margin variance on a particular project?
- Did I have schedule variances and what caused them?
- What does it cost to have each piece of equipment on a project for one day?
- How are change orders impacting my project cost?
- How many safety issues have there been on a particular project?
If you are not using construction specific software, you may have trouble answering the questions above in a timely manner. If you do have construction specific software and you still have trouble answering these questions, you may just need to set up a better reporting and/or dashboard system to help you access the information you need, when you need it.
Want to learn more about construction specific software solutions?
Request a free copy of Finding the Right Fit – A Guide to Selecting the Right Software Solution for Your Construction Company