Your latest project just wrapped. The crew worked hard, the client seemed happy, but when you close the books, the profit margin is half what you projected. Sound familiar? Here's the uncomfortable truth:  75% of construction projects exceed their budgets, and most owners don't realize they're bleeding money until it's too late to fix it. Without real-time cost tracking, you're flying blind. Labor costs drift 10-15% higher than estimates. Material invoices don't match POs. Ch

A general contractor three weeks into excavation discovers unstable soil conditions. The property owner verbally approves additional foundation work $15,000 for the scope change. Six months later, that construction change order becomes a $45,000 payment dispute. Meanwhile, cash flow suffers, subcontractors threaten liens, and the line of credit reaches its limit. This scenario affects over 70% of construction companies experiencing cash flow disruptions from change order dela

Material costs just jumped 30% on your active project. Your fixed-price contract is bleeding money. Sound familiar? You're not alone. In 2026, construction material costs are rising 5-50% across key categories steel, lumber, concrete, and copper leading the surge. This isn't a temporary blip. It's the new reality shaped by tariffs, supply chain disruptions, and megaproject demand. Here's what this means for your business:  A 20% material cost increase can wipe out 50-70% of y

Change orders are inevitable in construction, but disputes over them don’t have to be. Every year, construction disputes cost the industry billions in legal fees, project delays, and damaged relationships. The primary culprit is rarely the work itself; it is poor change order accounting practices  that leave room for misunderstandings, miscalculations, and mistrust. If you are a construction owner, general contractor (GC), or subcontractor, you know the stakes. A single dispu

Right now, your superintendent has $200K in open POs for materials that haven't been invoiced yet. Your project manager signed a $150K subcontract last week that accounting hasn't entered. Your "profitable" $2M project? It's already over budget, but your reports won't show it until next month. This article shows you how to:  Track every dollar you've committed (not just spent), spot budget problems 60 days earlier, and use real-time data to save projects before they go underw

Service calls turn into cash drains when untracked hours and surprise parts eat your margins alive. The wrong job costing method, whether time & materials or fixed bid can hide 20-30% losses until jobs close, forcing you to chase payments or cut crew. Mastering these approaches isn't optional; it's how you turn reactive repairs into predictable profits while keeping clients happy and books balanced. The problem isn't just choosing between time & materials and fixed bid. It's

Nearly 60% of contractors don't accurately track job costs, leading to profit margins 15-25% lower than they should be. Unlike new construction, service work involves emergency calls, unpredictable repairs, and constantly changing conditions that make accurate job costing both critical and difficult. Your billing model, Time & Materials (T&M) or Fixed Bid fundamentally changes how you track costs, recognize revenue, and protect your margins. Get this wrong, and profits leak a

Imagine bidding on a project with complete confidence, knowing exactly how much revenue you need before making a single dollar of profit. That clarity comes from understanding your breakeven point, a number that can make or break your construction business. Yet many contractors focus solely on profit margins while ignoring the breakeven point. They chase low-bid projects, win the work, and end up losing money. Understanding your breakeven point prevents this trap and helps yo

Picture this: You're three weeks into a commercial build, and your accountant delivers the news, labor costs are already 18% over budget. Your subcontractor invoices don't match your estimates. Material prices have jumped. For construction owners, GCs, and subcontractors across the US, budget overruns directly threaten your bottom line and reputation. Understanding why projects go over budget isn't about pointing fingers. It's about mastering job cost variance analysis to cat

A project that looked profitable at bid time turns into a money pit by month three. Material costs creep up, labor takes longer than estimated, and suddenly you're facing a 15% overrun with no clear understanding of where things went wrong. The traditional approach comparing budgeted costs to actual costs only tells you what already happened. By the time you realize you're over budget, it's too late to course-correct without eating into your margins. Earned Value Management (

Imagine submitting a bid for a construction project, only to realize halfway through that costs are slipping out of control and a job you thought would be profitable has turned into a financial headache. In construction, where margins are tight and prices can change quickly, this happens more often than many contractors expect. Underestimating even a little can do real damage. If you’re off by just 5 percent on a $500,000 project, that’s $25,000 gone before you start. Overest

Government construction projects offer lucrative opportunities for contractors and subcontractors across the US. But there's a critical requirement that can make or break your success: prevailing wage compliance. If you're bidding on or currently working on government-funded projects, understanding prevailing wage laws isn't optional, it's essential to your business survival. A single violation can result in back wages, penalties up to 50% of underpayments, contract terminati