Recent Articles

Accounting for Trades in Construction

Phase accounting is a great tool to use to account for the trades in new home and additions contracting. Found out which trades are tracked, how they are tracked, and the value of a good contract.

Roofer – Business Dynamics

06/01/2015

Within the residential construction industry is a subset referred to as ‘Trades’.  Within this group exists one particular trade that has its own set of business dynamics.  Roofers depend heavily on labor to accomplish their task.  They are [...]

What is a Reasonable Profit in Construction?

01/31/2013

For any company, profit is based on the risk reward concept.  So in construction, what should be the profit (reward) given the risk?  What is a reasonable expectation given the industry and the particular business?  There is no single correct [...]

Construction Draw Schedule

01/22/2013

A construction draw schedule is a financial tool used by contractors in identifying percentage of completion points in the project for the bank to advance proceeds to the contractor. The construction draw schedule is instrumental in keeping the [...]

Use Phase Accounting in Construction – Part II (Trades)

12/21/2012

The most effective form of a financial feedback loop in residential construction is phase accounting.  Phase accounting is a subset of cost accounting and generates accurate information in the world of new home and residential additions for small [...]