A large construction job can put you out of business. As a construction company owner, you must carefully account for the costs associated with every stage of the multilayered project. You must also track progress and update your client. You may use spreadsheets and generic software to keep track of your projects; however, it is easy to make an error flipping between screens. You may also not update the spreadsheet or software because you are too busy handling daily operations and addressing human resource issues. Your multitiered project will quickly fall behind, increasing your costs. The best construction job costing software is designed to compare your estimated cost to the actual cost at any stage of the project. You must steer clear of generic construction management costing software. Here are the top four features of the best construction management costing software.
1. Accurate Bids
Whether you have years of experience or are just beginning, it is very important to provide clients with clear and accurate bids. A job bid is the estimated cost for the entire project. You will break down the cost into line items that show the client the cost of each subproject. For example, a roofer may break down a roofing estimate with line items such as
- Shingle removal
- Dumping fees
- Box vent replacement
- Drip edge
- Ice and water shield
- Architectural shingle replacement
- Starter ridge
A single roofing job is easier to estimate than a large, multitiered job that requires the cooperation of subcontractors. When you are building a new construction commercial building, you may need to hire framers, floorers, plumbers, electricians, roofers, and painters. The best construction management software will create an accurate bid that accounts for waste, labour, and “pay when incurred” line items.
The best software allows you to track your progress. As each stage is completed, the software is updated. It will track your estimated times against your actual performance. It will also tell you when employees are clocked in, clocked out, and getting overtime. It will track where your expenses are over and under your calculated estimate. Tracking software will alert you when you are near or have exceeded your budget. You can fully monitor your expenditures to cut costs. When you can immediately identify cost overruns, you can take corrective action.
3. Risk Management
One of the most important features of the best construction job costing software is risk management. Sophisticated software includes forecasting and business intelligence tools for a multitude of construction projects so you can take a proactive approach to managing risk. With one program, you can oversee multiple projects, manage all your work crews, sustain the growth of your company, predict revenue, and unify the on-site execution of your construction project plans.
How do your employees clock in and out? Do they text you? Do they tell you their hours at the end of each work week? Do you know if your employees are at the job site before they clock in? It is a very tricky business managing employees who do not physically attend the same physical location every day. You must come up with creative ways to monitor their hours. However, this can cost you thousands of dollars in labour expenses every year. It may not seem like a big deal for an employee to miss a time punch or take an extra long lunch one or two days a week because it is only a couple of hours. When you add up two extra labour hours for every employee each week throughout the year, it will cost you thousands of dollars. Instead, you can find construction management costing software that allows employees to clock in and out at the job site. The software will track their location. If the employee is clocking in or out at a location other than the job site, it will flag the punch and alert you. You can take corrective action and notify the foreman.