1. Low Construction
Profit Margins
Every contractor knows that the cost impact of
unforeseen budgeting errors, on-site issues, and
changes in design can quickly grow out of control
One of the biggest causes of low profit margins is
rework. If you don't have the right answer to the
question when you need it, someone will do the task
wrong and then you have to pay someone to fix it. In
fact, as much as 20% of project costs on average can
be attributed to rework, according to the Construction
Industry Institute report, "A Guide to Construction
Rework Reduction".
Many project management systems also require the
contractor to use strict systems of naming and coding
structures for budget items, and if these are not
exactly the same, there are critical discrepancies in
reporting and tracking of project financials. The ability
to properly gauge the financial health of a project is
critical towards project success.
©2022 ProjectSight. All Rights Reserved.
ProjectSight gives project managers
and project engineers access to real-time
data around costs, forecasting, and
potential impacts.
"That's going to be a huge time saver for us,
but also gives our PMs visibility into their
budget and costs when they've previously
had to wait on accounting to receive reports."
—Brendan Radich, IT Manager with
James E. Roberts-Obayashi Corporation
4
