Construction projects rely on strong communication across the entire team to ensure everyone is working from the same information and there are no misunderstandings getting in the way of quality and productivity. Miscommunications among the project team can lead to costly and potentially disastrous results, not to mention a frustrated and angry client.
Last Thursday, the Biden administration reached bipartisan consensus on the proposed American Jobs Plan to allocate $1.2 trillion in new infrastructure spending in the US. A significant portion of that will be put towards revitalizing roads, bridges, water systems, public works, energy and other vital infrastructure projects. This plan will create new opportunities and benefits to construction contractors for years to come, and here at 4castplus, we’re staying on top of the ongoing progress of this bill, along with the ways we can help in providing leading technology to support the industry.
Part 1 of 2
If projects are the primary revenue stream for a business, then careful financial management of each project is critical for the success of that business. Managing a project’s finances means much more than just focusing on its revenue, it clearly also means vigilant control of costs, along with ensuring contract terms laid-out by the client are successfully delivered on time.
Additionally, clients and other stakeholders can be very demanding in their requests to be regularly updated on the budget status of a project. Management, for example, will want to keep a close eye on ensuring the budgeted project margin is realized once the project is complete as it is the foundation of their business model. Project managers will therefore need to be able to produce detailed reports on project finances on-demand that include analysis on actual margin and profit. A project manager will therefore need to apply key techniques for ensuring target profitability is achieved. In this article, we explore several methods for protecting and maximizing profit from project estimate all the way to close out.