How Helpful Are Job Cost Reports? Discover What Can Be Learned from Them
Posted on June 16, 2020
There’s no question that some people in some positions can benefit from job cost reports, but we often find that fund control organizations do not always realize how beneficial they can be. Keep reading to find out what you might be able to learn from them, and then contact Fund Control at 800-625-5972 if you would like a free demo to learn the many features of fund control systems.
Yes, Job Cost Reports Can Be Helpful
We will go over some of the details below, but let us begin by stating that job cost reports are a great tool to help construction companies determine if their jobs are on a budget. These reports also offer insight into efficiencies with production, which can help you discover any missing change orders, assist you in providing data to inform estimates in the future, and the overall bottom line. In most cases, a job cost report will include estimated costs, actual costs, and projected income – at a minimum.
Job Cost Reports Allow You to See Issues Early in the Project
It is essential to track job costs and to project costs so that your costs are not going to overrun. If it is going to be impossible to get the job done on budget, the earlier you discover this, the more likely you will be to find a solution. We recommend looking at actual costs and projected costs at least once per month, if not more often. This helps you see minor issues before they become major problems.
You Can Use Estimating Errors to Better Estimate Future Projects
When it comes down to it, an estimate is really nothing more than a guess about the costs of a certain project. Of course, it is generally an educated guess based on previous experience, but a guess none the less. As you gain more experience, estimates are likely to be more and more accurate. Any errors you make in estimating can be very helpful in better estimating future projects. Of course, you won’t have the data you need on those errors unless you are closely following your job cost reports.
You Will Get Insight into Efficiency
Labor-intensive projects often have labor as the highest overall cost burden. If that labor is not efficient enough, it can cost a pretty penny. That is why you should track labor costs and labor hours. Doing so helps you analyze project efficiency, and job cost reports can show you quickly what the issues are, provided you use said reports to track labor hours and not just costs.
At Fund Control we have been looking for ways to make this process simpler and easier. If you have questions about the services we offer, or the benefits of them, contact us now at 800-625-5972 or firstname.lastname@example.org and let’s talk.