How Job Costing Helps Construction Businesses Improve Performance

In the construction industry, too many businesses suffer financially for one simple reason: They are not optimizing their job costing analyses. At its heart, job costing is all about maximizing the value you get from your resources. To know where to focus on improvement, you have to know where and under what circumstances you can expect high performance and which projects are underperforming.

The poking and prodding of an annual physical may not be everyone’s idea of a good time, but its importance is without question. Without regular benchmarking you can’t maximize your health and longevity — and that’s to say nothing of the impact regular checkups can have on insurance and health care expenses. Businesses are extensions of their owners, and the same principle of care applies: To set realistic goals and make tangible improvements, you need accurate data that informs your actions.

When it comes to their financial health, many construction companies are forgoing diagnostics or not performing them thoroughly. As a result, these businesses lack the analysis necessary to accomplish transformational change.

In the same way blood pressure readings reveal the need for behavioral modifications or prescriptions, the close analysis of business data can help you see which types of projects contribute to growth and which may not serve your interests or could even hurt your financials.

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