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Many contractors are in the home stretch of their seasons but it feels anything like wind down mode right now. There is much work to be done and organizations need to be diligent in scheduling and performance in order to avoid margin fade. Too often, very busy cycles cause for poor planning, poor documentation (of things like change orders), and poor execution. Don't let this happen to you. Stay focused and disciplined to the end.. 9.30.15
Are You Covering your Equipment Costs? Is the Answer Readily Available on the Face of You Financial Statements?
Do you calculate your internal equipment costs? If so, are you able to tell on a monthly basis whether you are covering your actual equipment costs? Some contractors take great pains to calculate equipment costs each season and the apply this cost to jobs BUT cannot easily tell during the year if they are covering their actual costs. Utilization issues, repair and maintenance and increased insurance costs can all be reasons for fluctations between budget and actual. We can help you design your monthly financial statements so that you can easily see whether you are over or under applying your equipment costs. Let us help you manage your business timely and effectively.
firstname.lastname@example.org or 513.910.8542
The rain of the past few weeks has caused many contractors to scramble to adjust their schedules to make up for lost time. This likely means overtime, new equipment logistics and less than ideal equipment mobilizations. These added costs can eat away at your expected margins. These types of events that are out of your control make it critical that you are using good labor rates in your bid calculations. Do you factor overtime and downtime into your average hourly rate? There are various ways to accomplish this. If you are using straight time averages, there is a good chance that you will not hit your budget and profits will begin to erode.
For more information on rate calculations, email me at email@example.com or call 513.910.8542 August 2015