Construction cost management: Gaining full visibility of your financial data
Quality data provides vital insight to help improve your company’s construction cost management.
Construction companies are working within tight margins, in an industry that is being heavily impacted by a rise in costs.
- Skilled workers
- Specialist contractors
Without the right cost management tools, these increases in prices will create bottlenecks in the supply chains and projects. These will be especially felt by construction companies who have little visibility of their cash flow.
Limited visibility of cash flow and poor construction cost management can be caused by:
- Siloed data kept on disparate and outdated systems, such as spreadsheets
- A lack of collaboration and knowledge sharing between employees
- Duplicated and inaccurate data leading to poor business decisions
Financial Controllers need to create visibility of all financial areas, including the cost of resources, the end cost of projects and any debt currently existing within the company. Good construction cost management is based around having centralised, accurate data that is fully visible and can be updated in real time.
The right construction software can help improve cost management, but small-medium businesses are likely to be reluctant to update or change their systems due to threat of large overhead costs.
There are a number of simple, more cost effective steps that these companies can take to gain full visibility of financial data and improve their cost management, before considering software.
These methods can involve:
- Creating a central database where each employee enters the financial data they own
- Encouraging collaboration and communication between the senior team, right down to the skilled tradesmen
- Having organised files for paid invoices, late invoices, project records and payments made
- Observing and analysing bottlenecks in the supply chain caused by limited cash flow.
Unifying financial data into one larger and clearer picture boosts visibility and provides an end-to-end view of the company. Encouraging collaboration, organisation, communication and even software can help to improve construction cost management
- Financial data visibility is crucial to a company’s success
- A single system can bring it all into one clear picture
- Construction cost management software can provide the key
Find out how your construction company can drive its profits skywards with the help of the right contracting software in the guide: Improve Profitability With the Right Contracting Software
by Wes Simmons, MD, Eque2.
uPVC pipes, safety glasses and Spetz app launched
This week has seen a range of new product and service launches for the construction trade.
Vinyl Pipes has launched uPVC Column Pipes, which extend the life of pipes. Column Pipes with a power lock (patent pending) will not only to raise the safety standards but improve the efficiency of Borewell installations. This Lock system, a by-product of the in-house R&D team, is designed to bear load making the pipes stress-free, torque resistant and perfect for handling high pressure water.
Conscious that using the correct glasses could prevent 90% of jobsite injuries, Milwaukee's expanded range (pictured) features anti-scratch and fog free styles, new lens colours and magnification features, complementing its 'cut resistant' gloves.
Arriving on the UK app scene, Spetz is billed as a ‘one-stop shop’ for anyone "panicked by household flooding or electricity failure," as it unites tradespeople with consumers.
Spetz founder and CEO Yossi Nevo said urgent needs come in all forms and it’s unlikely that any household has tried and trusted tradespeople to match every possibility.
"The Spetz app rapidly connects them with a suitable ‘rescue service’ in as little as 30 seconds and that rapid reassurance is completely free - it’s the tradespeople who pay for these job leads. Those start at around £6 a time, but the tradesperson can then go on to make thousands from our automated system funnelling the best and most appropriate work their way.”
Spetz is now three years old operating in Israel, Australia and is now beginning a full UK rollout, after a ‘soft’ launch.