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

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

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 (

Let me ask you a direct question: How much money did your company leave on the table last year because of poorly tracked change orders? If you can't answer that question with confidence, you're not alone and that's exactly the problem. Most construction companies treat change order accounting as an afterthought, a paperwork hassle to deal with "when there's time." Meanwhile, they're hemorrhaging profits on every project. Here's the reality: Change orders represent some of the

“Last year was our best on record yet I’m not sleeping any better.” You’re bidding more, winning more, and keeping crews fully utilized. Revenue is up year over year, but when you review the numbers, profit margin has slipped again. The explanation is familiar: overhead increased . What that doesn’t tell you is what to address  or how to correct it . In reality, you’re focused on managing projects, coordinating subs, and serving clients. Meanwhile, cash is leaking in places

Your profit and loss statement shows a healthy profit for the year. But when it's time to make payroll or pay your suppliers, the cash isn't there. Sound familiar? This disconnect between profit and cash flow frustrates contractors every day. You're profitable on paper, but constantly stressed about money. The problem isn't your job costing or your estimating. The problem is you're not using your balance sheet to manage your business. Most contractors focus intensely on job c

Mastering Construction Cost Accounting is essential for any construction business aiming to remain competitive and profitable. Effective...

Job costing is important for any building company. It involves keeping track of how much each job costing mistakes , and it can have a...

Maintaining control of spending is absolutely vital while running a building company. Many builders concentrate on direct expenses, such...

Understanding overhead cost calculation  is essential for contractors aiming to manage costs and maximize profits. Direct costs, like...

Job costing is a big challenge for construction businesses, offering precise insights into project expenses and profitability. Effective...

Selecting the appropriate report can have a significant impact on monitoring the financial health of a building project. Two of the most...