Calculating Estimate-at-Completion and Estimate-to-Completion for Forecasting
Forecasting is an important practice when considering earned value management. Controlling expenses and keeping a project on track requires a proper understanding of two metrics: estimate-at-completion (EAC) and estimate-to-completion. (ETC). While EAC refers to the total expected cost for a project, ETC refers to the expected cost for finishing any remaining work. Therefore, both ETC…
Benefits of Accurate Construction Job Costing
Job costing is a type of accounting procedure which deals with assigning the project costs of a particular job. In the construction industry, job costing is used to allocate expenses to specific projects. Proper job costing involves a commitment to including all costs. Incomplete data will not be useful. A proper system of job-costing can…
The Ultimate Guide to Construction Cost Estimating
Incorrect construction cost estimating can quickly result in lost money and lost customers; doing it correctly, however, leads to business profitability and satisfied customers. With a variety of approaches to choose from, how do you find the best way to estimate your construction costs and keep your business running smoothly? SOFTWARE FOR COST ESTIMATING: IS…
Cut Construction Costs with Technology
The U.S. Department of Commerce says that construction spending during August 2017 (the latest figures available) was estimated at a seasonally adjusted annual rate of $1,218.3 billion – 0.5% above the revised July 2017 estimate of $1,212.3 billion and 2.5% above the August 2016 estimate of $1,189.1 billion. With a predicted slowdown for the remainder…