Learning whether you made money.
WHY IT MATTERS MOST
Without it, you cannot price the next job accurately.
WHAT TO RECORD AGAINST EACH JOB
Every material purchase Every labour day Subcontractor payments Plant and equipment Transport Site costs Rectification
WHY AGAINST THE JOB
Costs pooled across jobs reveal nothing.
HOW TO DO IT PRACTICALLY
A job number on every invoice, timesheet and requisition.
WHAT TO CALCULATE AT COMPLETION
Total cost Total received The margin The margin against what was estimated
WHAT THE DIFFERENCE REVEALS
Where estimating was wrong.
WHAT TO EXAMINE
Which items exceeded the estimate Whether labour took longer than assumed Whether materials exceeded the quantity Whether variations were charged
WHAT LABOUR OVERRUNS INDICATE
Rates per unit that are wrong, or productivity problems.
WHAT TO UPDATE
Your rates, from actual outcomes.
WHY
It is the only way estimating improves.
WHAT TO ANALYSE ACROSS JOBS
Which types of work are profitable Which clients are profitable Which are consistently not
WHAT TO DO WITH THAT
Pursue the profitable work and decline the rest.
WHAT MOST CONTRACTORS DISCOVER
That some work they pursue enthusiastically loses money every time.
WHAT TO REVIEW
Every completed job, briefly.
