How Contractors Can Solve Four Common Challenges
Recently Mr. Jennings took part in a CMiC playbook about forecasting. Here are some excerpts and a link to download the full playbook.
“Forecasting feeds the lifeline of the financial health of a company,” he says. “If owners and CEOs want to prevent profit fade during construction projects, they must equip project managers with sophisticated software tools that allow the managers to project costs accurately.”
“They also can know where their active projects stand at any time, in terms of profitability, by forcing the project managers to go into the software and actually update each of the line-item costs on a weekly or biweekly basis,” Jennings adds. “This brings tremendous confidence to the owners and CEOs, and will allow them to expand their surety bonding for their backlog of projects.”
“The biggest risk is not accurately forecasting how much money you are expecting to spend,” Jennings says. “The first thing I tell my construction clients is that you want to become more responsible with job costs. However, many construction companies lack the tools they need to follow this advice to its fullest.”
“If you want to take job costs seriously and actually be accurate with forecasting, you have to step up into one of the premier construction software systems,” Jennings recommends.