It is seldom that the original bid estimate to perform a particular construction activity is the same as the actual cost to do the work. It will always be higher or lower because of any number of unforeseeable factors. It is essential, therefore, if a contractor is to make a profit, to keep current on a project’s cost by maintaining a reliable cost control system. Changes in labor wages or productivity, labor shortages, increased cost of materials, delays in deliveries, accidents, weather conditions, etc., will affect both the cost and the original schedule. (Read Full Article)

The decision to bid or not bid a project is often times one of the greatest dilemmas a contractor faces following an inquiry to bid. Often times, the immediate temptation is to bid on most projects that become available in order to keep work coming in and avoid idle production. Yet the decision to bid on a construction project which is not suitable for a particular company can have costly ramifications not only financially, but could just as well damage the future credibility of the company. Often times, passing up on the opportunity to bid on a project is the best decision a builder can make. (Read Full Article)

Good equipment management begins with proper equipment selection. This means selecting the equipment that matches job conditions and gives the lowest total cost. Lowest total cost is a combination of highest production, lowest operating cost, and lowest investment cost. Buying equipment based entirely on purchase price or production seldom results in lowest total cost. (Read Full Article)

While most contractors are generally not directly involved with the financing of a construction project, understanding the process of financing and how it relates to a construction business is extremely important. The following outlines many of the most common sources for obtaining construction loans. (Read Full Article)

Few cost estimates for bidding on construction projects are made that do not contain errors of one kind or another. Too many errors on the plus side can be a major reason for a bid not being competitive. Too may errors on the minus side can cause the contractor to lose money if awarded the contract. (Read Full Article)

Because the construction management process is highly specialized and complex, traditional accounting software programs are generally not enough to leverage the full potential of cost efficiency and improved production for construction projects. While it is possible to purchase multiple programs that address each step of the construction project management cycle, construction software products have the advantage of combining all of the separate processes into one package so that all data is shared within a central location. (Read Full Article)