Job costing is something you are surely already doing. It’s a basic requirement for all construction projects. You have to keep track and account for all of the costs associated with a project for invoicing and management purposes. But, are you costing everything you could be? How can you generate deeper insights? How will that help you in the future?
GadellNet believes there is a lot of value in tracking more than your labor, materials, equipment, and subcontract charges. Your overhead should be accounted for. It is a little less direct, but these charges are still necessary for your future success.
Extras to Cost
The costs associated with the technology you are using falls into this category and should be costed if you are not doing so already. The project management and accounting software needed, the mobile devices used in the field, and the applications are just a few examples. Your cutting edge technology gives you an advantage and it can also be considered overhead, not just a necessary black-hole. Costing these expenses in a way that makes sense allows you to have a firmer grip on actual costs.
Another place to cost is printing. This really adds up over time. Your plans, subcontracts, owner agreements, and schedules all add up over time.
Generating Insights for the Future
Costing out these items will help you create accurate estimates for the future. To keep competitive numbers, some overhead, like office supplies, are left out, but including these larger items, as mentioned above, will help you immensely.
What it all comes down to is having the data. Having this data allows you to get more granular. With a more granular look from your increased amount of data you can generate deeper insights and make better, more informed decisions. This could be anything from modifications in labor and scheduling to equipment maintenance and repairs to switching to a different printer.
Staying organized is key when it comes to job costing. Categorizing charges based on the phase in which they occur or the task within the project they are associated with allows for a granular understanding of cost.
Making better decisions for the future is based on the amount of data you have and how well you organize and apply it. The ability to track trends and predict future behavior or situations based on past outcomes is crucial to staying competitive in a field that is quickly adopting more and more technology.
If you want to dive deeper into creating a plan for transiting to mobility or need help with your general tech road map, look over the Construction State of Technology eBook. This comprehensive guide will give you insights into getting the most out of your tech while staying on budget.