The construction industry has standards of performance and cost ratios. These standards and ratios are evaluated to determine if your business is performing well or below what is considered reasonable. Use construction industry standards to improve your contracting company.
When a builder constructs a house without a contract, it is known as a spec house or a speculation home. There are several advantages to the builder to build a spec house including timing, financial gains and workforce retention. There are advantages to the buyer to purchase a spec house as well. These include no delay in moving in, an overall lower price, and a simpler contract.
This section covers the three traditional trades that require a license from their respective state. This is your HVAC installer, the electrician and the plumber. In some contractor may wish to include the septic tank and water well installer. However, I prefer these two be included in the site development phase as they do impact the site and there is only one connection to the main builder for these two particular trades.
Cost accounting is an effective internal accounting process to evaluate company performance at the product/project level.
