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Monitoring Your Financial Position to Succeed in the Construction Industry

Viewpoint Construction Technology

Over the course of a project, cost increases that may seem marginal at the time, end up having flow on effects, or adding up with other overheads resulting in total project expenditure which is far from the amount originally estimated. Sometimes this erodes profit, but in some scenarios, it can mean losses or even worse.

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Lumber Prices Hit Record High, Threatening Housing's Momentum

Pro Builder

For home builders, framers, and remodeling contractors, the impact has eroded profitability, stalled production, and led to cancelled sales contracts and all-out shut-downs of projects—all of which works against housing affordability. "We They don't take into account overhead or profit for the builder, which is a bad way to go."

Housing 119
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Job Order Contract Unit Price Book Basics

Job Order Contracting

Definition: detailed cost estimate: “a forecast of construction cost prepared on the basis of a detailed analysis of materials and labor for all items of work.” – 13th edition of the Architect’s Handbook of Professional Practice. Improve your JOC Program today with independent, objective, locally researched cost data.

Contract 100
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Real-Time Work-in-Progress Figures — Construction’s Secret Weapon

ProcurementExpress.com

In the construction industry, WIPs cover the raw materials, plus labor and overhead, used as part of a project. They also serve as a way to check up on the financial health of your organization and ensure that you’re budgeting and forecasting accurately. When the payment hits their account, they may mistake it for profit.

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A Cash Flow Guide for Architects

Levelset

Let’s take a look at the basics of cash flow and how architects can budget their expenses and forecast their income to stay in good financial standing. Forecasting your revenue. Gray recommends starting with your breakeven rate and then adding 20% to that as your profit margin. From forecast to pricing. Lucas Gray.

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Real-Time Work-in-Progress Figures — Construction’s Secret Weapon

ProcurementExpress.com

In the construction industry, WIPs cover the raw materials, plus labor and overhead, used as part of a project. They also serve as a way to check up on the financial health of your organization and ensure that you’re budgeting and forecasting accurately. When the payment hits their account, they may mistake it for profit.

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How to Avoid Running Out of Cash on a Construction Project

Levelset

Most construction businesses focus on their profit margins — making sure that revenue exceeds costs for each job. Otherwise, you’ll have to use another project’s profits to cover those higher expenses. Forecast cash flow. Ensuring consistent cash flow throughout a project is the key to scaling your contracting business.