Construction Industry Standards / By / 02/27/2022

Implement Job Cost Accounting in Construction

Minimum Bottom Line Profit Should Average 9.4%!
For Trades & Subcontractors, at Least 11%
After Income Taxes Are Paid!

Financial success in construction is tied directly to job costing. Without job costing, financial wellness is likely a product of coincidence than authority within this industry. Implementing job costing in construction is the absolute best financial control a contractor can do to ensure success. Tie cost accounting to the estimating process, and prosperity is all but certain. Rarely does any contractor fail when they implement job cost accounting.

Job cost accounting in construction has several different names including:

  • Construction Accounting
  • Project Accounting
  • Phase Codes Costing

Job cost accounting is a subset of traditional financial accounting and is customarily used in industries that build or manufacture unique products or custom ordered products. In general, the products are expensive and are priced beyond the outer limits of consumer goods. In order for job costing to be

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