Archive for December, 2007

by Tim Ayler, CPA | Partner, Director of the Construction Services Group

How did this happen? Bob the Builder just wrapped up a $1,000,000 construction job, and realized that his job netted a profit of just $10,000, or 1%!

Assuming Bob the Builder’s labor costs were about 40 cents of every dollar of revenue on the job mentioned above, did you know that if he could have found a way to increase his employees’ labor productivity by just 5%, thus lowering his labor costs, he would have tripled his net profit amount? Not all factors affecting job productivity can be controlled, such as weather, but the following are just a few ways in which you can improve the productivity on your jobs.

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