Working in the construction business is difficult, interesting, and constantly changing. What one construction manager learned 10 years ago may or may not be relevant to today’s building projects. This is why it’s critical to keep an eye on how building projects are succeeding and failing. Today, we’ll look at the five most prevalent ways that construction projects today lose money.

1. Going Off the Rails

It should come as no surprise that falling behind schedule is one of the simplest and most prevalent ways for a construction project to lose money. Even a one-day delay can cost thousands of dollars and have a domino effect that makes making up the time impossible. When you utilize Fund Control, you can readily see each piece of the jigsaw, allowing you to predict and avoid issues.

2. Budget Management is Insufficient

Budgets aren’t recommendations. They’re there to make sure everything gets done on schedule and that there’s enough money to cover the costs. Extra costs can emerge if a firm does not manage its budget and needs to delve into reserves to pay for something. If modifications must be made at the last minute due to a lack of cash, money may be lost over time.

3. Hiring the Wrong People

Having the incorrect personnel is not just inconvenient; it may also lead to financial loss. It might be something major, such as an unvetted employee embezzling funds from a building project, or it could just be an employee that takes longer breaks and lunches and so is not earning their salary. Any construction project might quickly lose money if the incorrect workers are hired.

4. Construction Contracts Issues

This can be a problem in a variety of ways. Did you fail to add all of the necessary language, leaving you vulnerable to a lawsuit? Have you given too much away in your negotiations and ended up with less earnings than you expected? To verify that your contracts cover you the way you think they do, we recommend consulting with a contract attorney.

5. Unexpected Changes

Changes made at the last minute, without a doubt, may be costly. There is nothing that could have been done to prevent them in certain cases, but they might have been avoided far more often with greater planning and communication. This is where our money management software comes in handy.

How Our Product Can Help

Our fund management software isn’t a business program that can be tweaked to fit the construction industry; it was built from the ground up for the construction industry. It lets your staff to communicate quickly and simply, it allows you to monitor every cent coming in and going out, and it may genuinely help you avoid losing money on your next construction job. If you have questions, contact Fund Control at 800-625-5972 for a free demo.