Keeping a Rein on Overhead
Specialty contracting demands a sharp eye on the numbers.
Success in commercial construction relies heavily upon a contractor’s ability to keep tight control of overhead costs. Whether a project is being built under the plans and specs or design/build approach, efficiency is critical to good customer service.
“No matter what kind of job it is, we are constantly updating both our budgeted and actual labor and materials costs so we always know where we stand.”
Roger Belleau, Controller
The Corcoran Company
In the hard bid market, customers need the assurance that a contractor can provide quality work at a competitive price. Likewise, as part of a design/build team, a contractor’s fiscal efficiency minimizes waste and frees up resources for enhancements.
“We continually monitor our costs. No matter what kind of job it is, we are constantly updating both our budgeted and actual labor and materials costs so we always know where we stand.”" says Roger Belleau, The Corcoran Company’s Controller.
There are unique factors to every project ranging from the manpower required to the tax status of materials. With over a dozen projects running simultaneously, The Corcoran Company implements a regimen of progress reports and cost analysis to keep a clear picture of each job.
“The Corcoran Company’s ability to establish a realistic budget, and then hit their budget numbers as work progresses, really helps us.”
Jeff Jensen, Project Manager
Drahota Construction
Project managers and job foremen, for example, provide weekly data to the accounting department, which uses that data to generate reports on the status of their projects. Those reports are then compared to the initial projections for each job. Such cost tracking and containment help forecast the financial outcome of the project during construction. This information also helps guide The Corcoran Company’s pricing of future projects.
“The Corcoran Company’s ability to establish a realistic budget, and then hit their budget numbers as work progresses, really helps us,” says Jeff Jensen, a Project Manager with Drahota Construction. “And when things are going over budget, they do a good job of keeping us informed with detailed and accurate ‘scope letters.’”
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