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

Three weeks into a project, the owner requests a design modification. Your crew is already on-site, materials are ordered, and the schedule is locked in. You verbally agree to make the change to keep the project moving, figuring you'll sort out the paperwork later. Fast forward to billing time, and suddenly there's a dispute about what was agreed to, how much it should cost, and whether you're even entitled to payment for the extra work. This scenario plays out on constructio

Imagine bidding on a project, confident in your numbers, only to watch your profit evaporate as unforeseen expenses pile up. This scenario plays out more often than you might think in construction. Inaccurate job costing represents more than a minor hiccup, this silent profit killer can cripple even the most seasoned contractors. Getting job costing right goes beyond crunching numbers; understanding every dollar spent and earned on a project makes all the difference. When tho

In the construction industry, managing insurance costs  is a critical yet often complex task for contractors. Insurance expenses can...

Contractor insurance is a critical component in the construction industry, influencing not only risk management but also the financial...

Managing payroll in the construction industry is far from straightforward. Unlike other sectors, construction projects often involve a...

In the construction sector, good cost management can mean the difference between operating a lucrative business and merely keeping...

In the construction industry, understanding and effectively managing overhead allocation is crucial for maintaining profitability and...

Construction is about much more than the physical act of building. Effective cost management plays a huge role in this industry. Among...

Choosing the wrong cost accounting method can mean the difference between profitability and loss on every project. Understanding whether job costing or process costing fits your business model isn't just an accounting exercise, it directly impacts your bidding accuracy, project profitability, and long-term success. While most construction companies naturally gravitate toward job costing due to the custom nature of their work, understanding both methods helps you make informe