Construction job costing is now compulsory for contractors who want to improve profits, win more projects, reduce risks and gain the business insights needed to achieve real business growth.
Below are four ways construction job costing software can help your construction company improve job performance and boost profits.
The implementation of digital technologies across the construction sector would result in a 14-15% improvement in the industry’s productivity
- According to Mc Kinsey Global’s 2017 research.
1. Improved Estimating Accuracy
The most important function of job costing software is to allow the breakdown of the costs of a project that provides more accurate estimates. The breakdown of the costs associated with a project is a series of smaller figures, representing a unique aspect of that project. A good construction job costing software takes into account the costs each phase of the project carries such as labor, equipment, fuel, materials, storage, and the rest of it.
For ongoing projects, construction job costing software also allows more accurate data to be gathered and reported on with immediate results that can be immediate. Based on timely information, you make needed corrections.
By using construction job costing, you can understand the true cost needed to complete a project. The accuracy estimates will inform your bidding process and ensure you never take a project that loses your money.
2. Increase Growth and Reduce Risks
In construction, change orders are very comment and occur in almost every commercial and public project. Change orders refer add or subtracting work, altering the design revising the schedule, modifying the price, or deviating from the original project in some other way. All of these actions can result in delays and higher costs. Fortunately, with job construction software, you can electronically create change orders, ensuring that they are never lost, misplaced, overlooked, or incorrectly sorted for billing.
3. Improve Job Performance
Additionally, job costing accounting software is designed to compare estimated vs actual costs to see where you are on job at a given point in time instead of waiting until the job is over. It’s absolutely essential to track the progress on a frequent basis to see how well you’re doing on each job.
4. Allocate Costs Correctly to Hit Target Profits
Business Intelligence is becoming increasingly more important in many B2B software packages today and construction software is no exception. Over time, as you accurately estimate projects with the software, you can gain significant insights into profits and overheads, even at the task level. This information not only allows you to improve the accuracy of your job bidings in the future, by comparing estimates with actual costs but also allows you to see which sites are the most profitable.
Construction job costing software is a crucial investment for contractors that wish to improve their profits and increase growth, allowing businesses to stay competitive. Accurate costing allows you to bid more accurately on projects, stay organized, allocate costs correctly to your client, put together profitable bids and avoid cost overruns. With all the above, you’ll effectively mitigate risk throughout your business and better manage your project, and ultimately unleash your real potential to boost profits and achieve growth.