Labor woes, material costs shrink profit margins
Construction Dive
MAY 10, 2023
public construction firms. A Royal Institution of Chartered Surveyors report on soft earnings mirrors weak first quarter results from various U.S.
The Secret Sauce to Protecting Construction Profits
Autodesk Construction Cloud
APRIL 24, 2023
While incredibly rewarding, the construction industry is a challenging sector to work in for cost-focused business and project executives. Bank failures, rising interest rates, high material prices, and labor crunches are all making it more challenging for construction companies to protect, let alone, improve their margins.
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The most important construction KPIs to improve profits and productivity
Lets Build
JUNE 23, 2023
What do your construction KPIs look like? If they all revolve around your financials, you might be shrinking your own profit margins. Your construction KPIs should do more than measure a project’s health—they should show you where profit and productivity are dropping, why they’re dropping, and how to fix the issue.
The most important construction KPIs to improve profits and productivity
Lets Build
JUNE 23, 2023
What do your construction KPIs look like? If they all revolve around your financials, you might be shrinking your own profit margins. Your construction KPIs should do more than measure a project’s health—they should show you where profit and productivity are dropping, why they’re dropping, and how to fix the issue.
The Problem With High-Profit Jobs In The Construction Industry
Contractor Bookkeeping
APRIL 21, 2023
The most common situation is when a residential remodel contractor with a reputation and a substantial company generating 15% or more profits decides to start building custom homes. Or the opposite, a home builder who decides to branch out into residential remodeling.
Top five construction material suppliers
Construction Today
JUNE 12, 2023
New buildings, roads, and bridges are being constructed every day, making the construction industry one of the most profitable and continuous industries. To keep up with the growing demand for construction materials, there are numerous suppliers worldwide to keep the process going.
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How Does Hike in Interest Rate Affect Construction Industry?
The Constructor
JUNE 22, 2022
Interest rate hikes make construction projects more expensive because the cost of construction materials increases. It also reduces the profit as the.
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Harness the Power of Estimating Data to Grow Your Business
Construction Business Owner
AUGUST 27, 2023
Harness the Power of Estimating Data to Grow Your Business ccapoccia Sun, 08/27/2023 - 12:23 Estimating is the foundation of every profitable construction business. Accurate takeoffs are important for getting the correct material and labor quantities for your project.
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HG Construction hits record revenue but profit slides
Construction Enquirer
MAY 23, 2023
Hertfordshire-based HG Construction delivered a third year of strong growth to achieve record revenue last year, up 38% to £336m. But pre-tax profit slid to £15m from £25m the year before in the face of a turbulent market and unpredictability of material and labour prices. Op profit margin 4.6%
Reducing 3 Types of Construction Waste to Increase Home Builder Profit
Pro Builder
FEBRUARY 11, 2022
Reducing 3 Types of Construction Waste to Increase Home Builder Profit. In today’s economic climate, it’s vital for home builders to keep waste to a minimum so they can receive the highest profit on their homes. Lean Construction’s Greatest Hits, Vol. Fri, 02/11/2022 - 10:13. What Is Waste? That simply is not the case.
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6 Construction Leaders Share How They’re Protecting Profits in 2023
Autodesk Construction Cloud
JULY 31, 2023
Let’s face it – construction executives are feeling the pressure to do more with less. Necessary materials are thousands of miles (and sometimes years) away. And to top it off, construction workers are in high demand, but short supply. How Are Construction Firms Protecting Margins In 2023? “The
Subcontractor Solutions for Higher Profits
Viewpoint Construction Technology
NOVEMBER 29, 2017
Construction software has been instrumental in changing the face of the construction industry. While strides are being made to be more connected from the first step of a project, the past 20 years of productivity in the global construction market have only improved 1 per cent year over year. Cost savings.
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5 Safety Precautions For Multi-Level Construction Sites
Construction Marketing
JUNE 14, 2022
Construction workers face various challenges in the course of their work. As the owner of a construction firm , you’re responsible for enhancing the safety of your workers. With that said, here are safety precautions to promote safety in a multi-level construction site: . Inspect Your Machines Regularly.
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Managing Supply Chain Disruptions in the Construction Industry
Construction Business Owner
SEPTEMBER 9, 2022
Managing Supply Chain Disruptions in the Construction Industry. This has been true for every industry, but few have been as broadly affected as the construction industry. Construction supply chains are naturally complex, and the operating principles that worked in the pre-COVID-19 marketplace may not be as successful today.
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3 construction industry trends in 2023
Lets Build
FEBRUARY 24, 2023
There are some unique construction trends in 2023, but we also have more of the same. The same issues plaguing the industry last year—labour shortages, supply chain disruptions, high material costs, lower profit margins, etc.—followed These challenges will likely result in even smaller profit margins in the months to come.
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Seven Traits of Profitable Specialty Contractors
Fieldwire
FEBRUARY 14, 2022
Anyone who has managed a construction company, department, or project knows profitability can be challenging. Intense competition, fluctuating market conditions and other factors often result in tight profit margins. Even with numerous challenges, specialty contracting can be profitable. In-Demand Expertise.
Home Builder Profitability Reached Highest Level on Record
Pro Builder
JULY 26, 2021
Home Builder Profitability Reached Highest Level on Record. Last year’s net profit average for builders reached the highest level since management consulting firm The Shinn Group began tracking net income data in 1994. The previous record was set in 2006, but 2020’s net profit average of 11.4% percent for a net profit of 11.2
Beware of Using Assemblies for Job Order Contracting
Job Order Contracting
NOVEMBER 21, 2023
A fundamental element is Job Order Contracting (JOC) is line item estimating which involves breaking down the cost of construction into discrete, granular tasks, each item representing a specific material, labor, and equipment components. Each aspect, such as materials, labor, equipment, and overhead, should be itemized separately.
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Unit Price Construction Cost Estimating
Job Order Contracting
APRIL 26, 2022
Unit price construction cost estimating is the foundation of every reliable cost determination prior to procurement. Unit price construction cost estimating is the foundation of every reliable cost determination. Profit and overheads should be considered separately. for the local market.
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11 Ways to Submit the Best Quality Bid
Construction Business Owner
DECEMBER 20, 2022
An accurate bid for construction work takes time; it’s not something that can be thrown together in 15 minutes. It takes knowledge of the client, an understanding of the plan, and much skill to estimate labor, materials and equipment costs accurately. 11 Ways to Submit the Best Quality Bid. Tue, 12/20/2022 - 09:48.
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Construction in the Digital Age: Embracing Innovative Tools for Successful Business
Construction Marketing
MAY 17, 2023
The construction industry is undergoing a remarkable transformation as it embraces the digital age. Due to the quick adoption of new tools and technologies, keeping competitive and being successful in the current environment of the construction industry are now closely related to implementing technological innovations.
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9 Keys to Building a Reliable Commercial Construction Subcontractor Network
HardHatChat
FEBRUARY 14, 2024
As anyone in the commercial construction industry knows, reliable, responsive, and skilled subcontractors are the lifeblood of our business. We believe it enhances our project outcomes, mitigates risks, and supports the overall success of our national construction business. Believe me, it takes some trial and error. It matters.
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How Inventory Control Saves Construction Teams Resources
Construction Business Owner
SEPTEMBER 1, 2022
How Inventory Control Saves Construction Teams Resources. Practicing inventory control helps your construction team save time & money while keeping you organized. All sorts of businesses rely on inventory to provide goods and services to their customers, but when it comes to construction, supplies and materials are truly essential.
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MOST Construction Cost Data is Useless
Job Order Contracting
AUGUST 4, 2023
MOST Construction Cost Data is Useless due to archaic research methods and cannot provide cost visibility or enable cost managment capability for local markets. Robust Construction Cost Data Research 1. No inclusion of builder/contractor overhead or profit. Organization using expaned CSI Masterformat. 4BT updates 1.2+
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Winvic profit falls a third after losses on two jobs
Construction Enquirer
JULY 26, 2023
Shed and multi-room building contractor Winvic saw pre-tax profits fall for the first time after two jobs secured before the pandemic ran into loss. Pre-tax profit nosedived a third to £10.5m in the year to January 2023 as the more challenging market also eroded margins.
How to Make Changes & Still Make Money
Construction Business Owner
MARCH 26, 2021
It’s nearly impossible to make any money when contracts allow just 10% and your subcontract only allows for 15% total overhead and profit markup on change orders, or time and material costs plus work. The typical commercial contractor’s annual overhead and profit markup look much like those in Figure 1.
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First Quarter Marcum Construction Index Reports Increasing Costs, Labor & Material Shortages, Rising Interest Rates
Construction Superintendent Magazine
JULY 18, 2022
The Marcum Commercial Construction Index for the first quarter of 2022 reports that the construction industry faces increasing costs and shortages of both labor and materials, as well as rising interest rates. Despite rising costs of capital, demand for construction services remains elevated. Many contractors report.
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Harnessing the Power of RPA
Construction Business Owner
DECEMBER 13, 2021
Despite its simple appearance, the financial equation of “revenue - expenses = profit” is so complex, there are few who truly understand it. Common expenses for operating a construction business include labor, materials, insurance, permits, office space, vehicles, trailers and other incidentals. Mon, 12/13/2021 - 07:30.
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How to survive and overcome inflation and rising construction costs
Lets Build
FEBRUARY 3, 2023
Arcadis recently released a report about international construction inflation and costs with some interesting findings: Construction companies in both developed and emerging economies are experiencing price increases of over 5%. So what can we do to survive when construction costs are higher than ever?
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2020 Guide to Construction Cost Estimating
Job Order Contracting
JULY 19, 2020
2020 Guide to Construction Cost Estimating provides a road map for applying best management practices necessary to drive financial visibility and transparency. Locally researched detailed line item unit price construction data provided the highest level of verifiable and transparent information. Material costs are either.
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ABC’s Construction Backlog Inches Higher in May, Materials + Labor Shortages Suppress Contractor Confidence
Construction Superintendent Magazine
JUNE 17, 2021
Associated Builders and Contractors reports that its Construction Backlog Indicator rose to 8.0 While ABC’s Construction Confidence Index readings for sales increased modestly in May, confidence regarding profit margins and staffing levels slipped. months higher than in April 2021 and May 2020.
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Material prices increase in March, expected to constrain profit growth
Construction Dive
APRIL 13, 2018
The ABC said that rising material prices and wages will challenge contractor profits in 2018, despite a healthy backlog of work.
The Numbers You Need to Know to Keep Your Fleet Profitable
Construction Business Owner
SEPTEMBER 17, 2019
Whether you are a general contractor, builder, specialty contractor or subcontractor, it takes labor, equipment and materials to complete a contract’s scope of work. Therefore, when pricing and estimating projects, you must include the time and money required for each in your bids. Here's how to do that properly. .
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Validity of a Construction Cost Estimate – Public Sector
Job Order Contracting
MAY 4, 2023
The validity of a construction cost estimate, the most important aspect, is often overlooked and resulting in billions of dollars was every year. A construction cost estimate must be independently validated. Key Principles There are key principles that should be adhered to when preparing a construction cost estimate.
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Practical Procedures To Boost Your Construction Business Profitability
Contractor Bookkeeping
OCTOBER 18, 2019
Cost is what you see; the profit potential is what you don't see. High-profit construction company owner's focus on both and understand that "It Takes Money To Make Money.". Strategy comes from the office.
Construction quality management: Everything you need to know
Lets Build
DECEMBER 2, 2022
It’s a curious paradox that few industries are as tightly regulated and controlled as the construction sector, yet at the same time, few industries are as vulnerable to unexpected events. From ambient weather to subcontractor failures, construction projects can be derailed in numerous ways. What is construction quality management?
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Careys looks to bounce back after £35m construction loss
Construction Enquirer
JULY 3, 2023
Civils and construction specialist Careys is looking to bounce back from a “turbulent” year which saw the main contracting business record a £35m loss. But the main contracting division was plunged into the red by a number of problem contracts, project delays and materials inflation on fixed-price jobs.
Essential Construction KPIs to Improve Profits and Productivity
Autodesk Construction Cloud
DECEMBER 12, 2021
Why Construction Teams Should Be Tracking Way More Than Financials. In fact, 43% of construction firms prioritize immediate financial goals over organizational resilience. Below, let’s discuss the importance of construction KPIs and critical metrics your company should be measuring to affect profits and productivity.
Keep Up With Construction Material Cost Changes
Construction Business Owner
MAY 1, 2024
Keep Up With Construction Material Cost Changes Turn data into intelligence and empower your organization with the latest in construction cost Data Insights. Market volatility, geographical variations and the lag between project initiation to build introduces unpredictability in the total cost of construction projects.
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How Specialty Contractors Stay Profitable Despite Labor and Material Shortages
Jobsite with Procore
MARCH 17, 2022
Although the construction industry has largely bounced back from the darkest days of the pandemic, there remains significant challenges for everyone.
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5 Technologies the Modern GC Should Be Using in 2021
Construction Business Owner
MAY 28, 2021
People and material make up the lion’s share of a contractor’s overhead, so it’s no surprise that efficiently managing these is the best way for contractors to improve their profitability. 5 Technologies the Modern GC Should Be Using in 2021. Alex Headley. Fri, 05/28/2021 - 07:30.
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What are Preliminaries in Construction Contracts?
Lets Build
MAY 11, 2022
Most construction companies, project managers , and contractors will deal with preliminaries in their construction contracts. These preliminaries, also called prelims, cover costs for an entire construction project—not for specific work sections or activities. What do preliminaries in construction mean? Site security.
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How to Deal with Extended Lead Times and High Material Costs
Levelset
JUNE 14, 2022
Construction material costs are rising along with high fuel prices , affecting lead times and project success. Additionally, the wait for materials forces specialty contractors into a tight spot, removing the ability to guarantee deadlines and the on-time completion of projects. .
Materials 52
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Common Construction Business Pitfalls And How To Overcome Them
Contractor Bookkeeping
FEBRUARY 23, 2024
Construction Company owners like you have probably experienced life-changing events in the past few years, as many of our clients did. Are you struggling to keep your construction business afloat? Poor Cash Flow Management One of the biggest challenges for construction businesses is managing cash flow.
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