IPA Presents:
Business Fundamentals for the
Construction Industry
Whether you are an excavator, masonry, roofing or plumbing contractor - the following common business
tools are employed by successful construction companies:
Financial Planning
- Cash flow forecasting and cash flow management
- Establish or improve line of credit
- Establishing break-even levels
- Determine overhead
- Determine burden rates
Estimating/Job Costing
- Determine break-even levels and lowering them through cost control
- Manage percentage completion
- Track actual job costs versus estimate
Job Cost Control
- Purchasing control system
- Material monitoring and control
- Continuity from estimating to job costing: estimated costs versus actual costs
- Effective management of field personnel
- Negotiated versus straight bid
- Small tool expense control
- Work in process reporting
Admin/Management
- Management authority and responsibility clearly defined
- Organizational relationships that facilitate efficient operation
- Well defined operating procedures
- Profit-based employee compensation program
- Profit-based decision making
Performance Management
- Improved field to office communication
- Performance pay
- Systematic and effective communication
- Job progress meetings
- Safety meetings
