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 costs.
Before your job got rolling, you built a detailed schedule you thought would help you manage the project to completion. Now you’re waiting on permits, two of your subs haven’t showed and your available resources are strained. You’ve got a stack of daily reports that are too overwhelming to sort through before your next OAC meeting. That faded project schedule on the wall is looking pretty useless.
Project managers need a schedule that is dynamic, just like their jobs. Unfortunately, most project managers are too busy to update their schedule based on every event that arises and they spend too much time tracking down other people to gather the data they need. Moreover, most project managers are using separate systems for project control and project scheduling. The change orders, submittals and daily reports tracked in one system aren’t being reflected in the scheduling system that manages the critical path.
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 attract.
Project managers need accurate, up-to-date job cost data. How much has been spent so far? How does that match to the budget? However, they probably don’t know what invoices have come in and what’s been paid. Accounting takes care of that. What they do know is what’s been done in the field, what’s late and who’s performing (or not). (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 industry.
The right software isn’t cheap; in fact, you’ll likely spend $3,000 to $30,000 to deploy a construction-specific accounting system. However, the benefits of the move will pay out early and often. Construction accounting software will help you get a better grip on your job costs, manage your risks and generally “speak your language.” Here we highlight six powerful benefits of accounting software built for the construction industry.
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