How To Gain A Competitive Advantage With Improved Job Costing In 2021?
When it comes to being awarded high quality, profitable jobs, accurate job costing can make or break a bid. However, this requires contractors to have a concrete grasp on their costs, including materials and labor, along with other variable costs. Effective job costing is a valuable tool that can help during the bidding process and can lead to being awarded more jobs, at a higher profit margin.
At ProjectPro we know the importance of an efficient & effective job costing system. Many of our employees have worked in the construction industry and bring with them years of firsthand experience. Coupled with our strong technical skills, we are proud offer a robust job costing system.
In the construction industry, winning a job is only the first step. Jobs can easily go awry without effective project management. Construction management software provides access to instant & accurate job costing that helps companies stay on time and budget, regardless of the job size. In addition to job quoting tools, detailed reporting provides estimators the ability to review past job performance to use in future bids. At the management level, project managers and executives have the ability to check in on project statistics and progress at any point in time, providing a level of transparency that has been difficult to attain with legacy systems.
Before construction management software became popular, estimators were forced to submit bids with their best guess at what their costs would be; often resulting in stressful situations for project managers who find themselves trying to stay in budget, when costs are inaccurate.
Increased competition has driven the need for more transparency and accuracy in quoting and managing projects. Having an easier, efficient bidding process leads to more competitive bidding, and higher profit margins.
ProjectPro allows you to automate project management and administrative tasks that normally require a lot of time and result in additional costs to your customers, or lower profit margins.
Companies who adopt cloud-based, construction management software have a competitive advantage over companies who are still operating with cumbersome legacy systems. As we navigate a new era of remote working, cloud-based systems offer users the ability to quickly access data from home or on site. Having an integrated system with robust tools and reports leads to more accurate bids and increased profitability.
Below we will discuss how using construction software technology can help simplify the project life cycle, from pre-bidding to closeout.
Project setup
The beginning of the job costing process requires detailed and accurate project documentation and cost estimates. Since project setup is the initial stage of construction project management, contractors and project managers as much information as possible in regard to scope of work, and project site conditions and requirements. At the same time.
Project Bidding
At this stage, contractors and their project teams need to create and send their bid package to the general contractor overseeing the project, or directly to the owner. Working on bids requires gathering all documents requested by the owner. Having a strong handle on your direct and indirect costs is needed to ensure you are submitting a competitive, yet profitable, bid.
Project Tasks
Project planning requires scheduling labor, material orders if needed, as well as any equipment you will be using. It can also include working with subcontractors on tasks you will be outsourcing. ProjectPro is designed to assist with project task setup, and streamlining processes related to tracking labor, materials and subcontractors. Additionally, you can utilize ProjectPro’s progress billing feature to streamline your invoicing process as well as take advantage of multiple reports to keep your projects on track.
Project change orders
Change orders are an inevitable part of working on projects; especially those that are complex in scope. ProjectPro helps you manage requested changes and ensure a timely response to change order requests.
Close-outs & warranty
Project closeout can be a tedious part of project management and may cause a delay in receiving final payment. Utilizing construction management software, like ProjectPro allows you to streamline the process of closing out a project by giving users the ability to submit their retention invoices in a timely fashion and other pertinent related goals.
Whether you are sending progress bills, invoice clients for the achieved goals or issuing final billing for retention, ProjectPro provides you real-time reports and data, to easily create and send documents. In addition, our accounting capabilities ensure effective cash, expense, and tax management, simplifying every aspect of running a job, and delivering maximum transparency.
Construction job costing is the bidding process, but a continuous process that. That will be necessary for change orders and to keep on top of costs during the project life cycle. ProjectPro allows you to manage every stage of the project with precision leading to higher profits and customer satisfaction.
If you are a construction contractor who is having trouble meeting your construction job costing goals, ProjectPro is a game changer that you need to consider. Don’t leave at the bidding table. Let our knowledgeable team help you compete for new opportunities in 2021 and provide your clients with exception service from start to finish.
For more information, contact us today
