Are your construction project cost reports worth the paper they’re printed on?
In a previous article, I discussed how important it is to know whether your construction project is making or losing money. Some contractors don’t bother with project cost reports. They simply hope for the best, and that the construction project ends profitably.
While some contractors do sometimes prepare monthly project cost reports, unfortunately, these cost reports are of little value because they contain errors, or the information contained in them is ignored by the project team.
12 Common Cost Report Mistakes
Common construction project cost reporting mistakes include:
Getting value from project costings
Cost reports are only valuable if they are correct and if the information produced in the cost report is acted on by the project team. They should be easy to complete and simple to interpret so that project management time isn’t taken up preparing the report.
It’s important to investigate anomalies in cost reports. Don’t just take the report at face value. I’ve discussed investigating your losses, but sometimes it’s equally important to investigate where you are making money. You don’t want to find later that where you thought you were profitable you actually aren’t, and there were in fact errors with your report.
What mistakes have you encountered on construction project cost reports?
This article was first published on the ClockShark website.
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The opinions expressed in the attached articles are those of the writer. It should be noted that projects are varied and different laws and restrictions apply which depend on the location of the contractor and the project. It's important that the reader uses the supplied information taking cognisance of their particular circumstances. The writer assumes no responsibility or liability for any loss of any kind arising from the reader using the information or advice contained herein.
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