In the construction industry, it’s essential that contractors and other industry professionals have tools to accurately produce an estimate of the total costs required to complete projects. Getting a stronghold on a construction project’s cost to complete helps your team remain productive, prevents big surprises down the road, ensures profitability, and maintains the confidence of those who contracted you to do the work.
Accurately grasping a project’s cost to complete can be murky, especially when it comes to long-term contracts because you need to take labor and the project’s progress into account. If you fail to get an accurate cost of completion estimate in the first leg of a project, or if you fail to adequately adjust your estimations as the project progresses, you’ll lose money – in fact, you might lose so much money that you won’t be able to complete the project.
However, when contractors accurately gauge their cost to complete they find their jobs become easier. Banks and investors have more confidence, especially when you consistently meet cost to complete goals, and they might be willing to open more lines of credit. Plus, the contractors themselves will be able to make more money and ensure their business’s profitability.
Construction and real-estate management software (CRE) is a big industry tool that helps calculate costs and keep moving parts in one easy-to-access place. Realistically, construction projects, especially big ones, need to be using CRE software to manage all aspects of the job. Without this tool, making accurate estimates and managing a construction project would take longer and be more difficult.
Need help with calculating cost to complete? Contact us – we can help.