Archive for the ‘Construction’ Category
by Tim Ayler, CPA | Partner, Director of the Construction Services Group
No matter what your upbringing, there is a good chance you have heard the story of Noah and the ark. While the events happened a long time ago, it is relevant in today’s construction economy. How? Because Noah believed it was going to rain and instead of just watching it rain, or just measuring the rain, he did something about it and built an ark. If you believe there may be difficult times ahead, do not sit by and watch the changes impact you, get involved and do something about it.
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.
By Alicia Rader, Greenwalt CPAs
Even if your construction company has been profitable for the last few years, you probably desire to do better. And, if you have been running in the red, you definitely need to determine ways to improve your company’s operations. How can you increase the likelihood that your company will become more efficient? One methodology that has gained wide acceptance within the construction industry is benchmarking.”