While too few builders have appropriate measures and processes in place to track and manage the cost side of their business, too many of those who do put the appropriate measures in place, are focusing on just one of the two key operational dimensions of the building business.

All too often tract home builders put a 6-month building period, when planning for their project carrying More …

So you’ve decided to consider getting the proper financial accounting and reporting package for your construction business. It’s a daunting task on the one hand and exciting on the other. The general idea is to bring into your organization a tool that will better allow you to understand what is making money, what is costing money, and to provide information allowing you and your in-house accounting team to keep up with the paperwork requirements that go along with being in the construction More …

This time of year, we talk with many construction companies considering a new accounting software purchase. Maybe it’s the change in seasons, the closing of the calendar year or the tax season looming on the horizon; what ever the psychological trigger, there are rational reasons to replace generic accounting software with a construction-specific accounting and job costing system. Here are the 5 top reasons we hear from companies thinking about a More …

Regardless of how responsibility is shared in a project, building owners bear the ultimate risk. They write the checks for overruns. They feel the pain of delays in the form of lost revenue opportunity. Finally, they pay the additional costs of a facility built for project profitability rather than long-term operating efficiency. Everyone but the lawyers will agree that litigation won’t recover these More …

Project managers and accounting staff are often a world apart. They differ in personality, computer skills and the type of work they do. While many contractors are content to let these two worlds remain separate, the best companies are integrating what’s managed in the field with what’s accounted for in the office. Importantly, these industry leaders are finding that opposites do More …

The last thing most construction executives want to worry about is their accounting software. But as your company grows, accounting becomes more complex and more integrated with operations. While a generic accounting package like QuickBooks or Peachtree got your business off the ground, it may be time to deploy accounting software designed specifically for the construction More …

Still estimating the old-fashioned way? Pen, paper, and bare-bones spreadsheets still comprise the cost estimating “systems” of the majority of construction firms. Why is this so, when just about everyone uses accounting and project management software applications? We hear lots of excuses, ranging from “I’m the only one who really knows the material and labor costs in my region” to “It’s easier to do it by hand than to learn a new More …

Did you end up paying the homeowner to do your last remodeling project? You thought you had applied enough of a markup to be profitable, but realized you actually lost money in the end. It took a lot longer than planned to demo the wall in the kitchen. You forgot that the new hardwood floor would require shoe mold around the cabinets. And the last-minute change order for a tile backsplash upgrade was a total More …

One of your techs is sleeping in his van behind Arby’s. Purchasing has no idea where to allocate the $1,000 invoice they got from Midtown Supply. Meanwhile, you can’t figure out if the ACME Corp service contract you negotiated last summer turned out to be More …

You’ve got a pretty slick cost estimating system. Your estimators generate bids quickly, complete with line item quantities, costs, and even “what-if” scenarios. Accounting upgraded from Quickbooks a few years ago and is running More …