Build a More Profitable Construction Business
When done right, construction can be a hugely profitable enterprise. At the same time, if not approached with an eye for efficiency and effective project management, it can result in a net loss even as significant revenue comes in. Paying attention to the following key tips is the best way to ensure a steady, consistent…
Using the WIP Report as a Critical Management Process
The work-in-process (WIP) report is a very important document for construction companies. This report can be used for financial and managerial planning. It provides detailed insight into core organizational processes and is one of the most valuable assessment tools available. By treating the WIP report as a critical management process, organizations can get valuable information…
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…