Tag: Construction
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Estimates, Bids and Proposals – Differences Among Offers in Construction
Estimates, bids and proposals are terms used to present a dollar value associated with construction work. The terms are NOT interchangeable.
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Residential Roofing Contractors – Financial Performance Standards
The national average sales for residential roofing contractors are slightly greater than $3 Million per year. A typical small roofing contractor will have a couple of crews working various projects and frequently sub out jobs. In addition, the owner acts as a project manager and there are one to two estimators depending on the volume…
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Take-Off with Construction: Part 1 (Concepts and Materials)
Take-off with construction is a term used to refer to the process of detailing units and costs with a job estimate. Take-off supports the final values.
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Construction Accounting
Construction accounting exists to provide two key financial points of information to contractors and the management team of a construction company. The first and most important financial point is field production profit. This particular profit measurement is commonly referred to as job profits. It is essential contract revenue less direct (hard) costs of construction. The…
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Key Performance Indicators With Construction – Production Reports (Part 1 of 3)
Key performance indicators with construction include the annual financial income statement (profit and loss statement) and job productivity reports.
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Residential Construction: Average Net Profit After Taxes Equals 9.4%
The residential construction industry’s average net profit after taxes equals 9.4% during 2019. The top four companies in the United States built and sold 151,366 homes with an average sales price of $376,703. Each home netted after income taxes $35,464 of profit. This equates to an average net profit of 9.4% in the residential construction…
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Estimating in Construction – Part II (Financial Outcomes Evaluation)
Estimating in construction is a tool to guide the construction management team towards improved profitability (an internal control system).
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Mark-Up with Construction
To grasp the concept of mark-up, the reader must first understand some history associated with mark-up. Next, a modern approach is adopted which requires an understanding of hard and soft costs.
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Control Equals Profit in the Construction Industry (Introduction)
With construction, control equals profit. Control must exist at both the organizational and field operations level.
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Retainage in Construction – Purpose, Accounting and Law
A tool used by a developer, contractor or homeowner to keep the primary party committed to getting the project completed is called ‘retainage’.