A Dozen Reasons Construction Contractors Use Job Costing

You’ve already figured out that when you own a construction contracting or service business, your world is colorful. Some of the myriad “things” on your mind are job sites, retainage, percentage completed, purchase orders, prevailing-wage rates, payroll, change orders, subcontracts, AIA billings, and equipment usage.

But did you know about the contractor’s friend called Job Costing? Did you know job costing is designed to make all the above “things” take their rightful place in maintaining the overall health of your construction firm?

Look at job costing as a way to Measure and Monitor, to Weigh and Watch, to Quantify and Qualify.

Getting it All Out in the Open

The information gathered through job costing is invaluable as you grow your construction contracting or service business. And here are a dozen reasons:

1. Job costing will help you identify the most and least profitable areas of your construction company.

2. Job costing is one of the best ways to develop an accurate budget for your construction firm.

3. You can use the information concerning labor and materials costs to aid in determining overhead costs.

4. You’re able to carefully analyze job costing reports for completed jobs and jobs-in-progress.

5. Job costing allows you to put into action a billing system that is tied to actual and committed costs.

6. With job costing, you can learn which types of jobs are your bread-and-butter jobs.

7. Using job costing will allow you to see the division of labor and labor burden.

8. Job costing allows you to analyze where you’re spending so you’ll know more about what works and what doesn’t.

9. Through job costing, you’ll obtain information allowing you to be more precise concerning billing.

10. Job costing shows you what margins you’ve been sacrificing on past estimates.

11. Through job costing, you can factor in overhead expenses to better understand individual job profitability or loss.

12. A mature job costing system allows you to categorize every expense your construction contracting business incurs.

Don’t Work in the Dark

Without job costing information, you’re working in the dark.

Using job costing reports is an important way to improve your business and your business processes.

Ambitious Construction Contractors look to The Profit Constructors to provide advocacy in dealing with:

• Clients and customers

• Employees and subcontractors

• Vendors and service providers

• Governmental entities 

Working with The Profit Constructors gives Construction Contractors the means to organize their operations in ways that help them:

• Remain informed

• Avoid hassles

• Reduce risks

• Be future-ready

Ready for action? Or want to know more? Get in touch today to schedule a complimentary discovery call. 866-629-7735