budgeting for contractors

Budgeting for Contractors

Top Tips for Project Planning and More

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Control Your Costs

In construction, cost control and budgeting can be a difficult process. Jobs are constantly changing and estimates are only that-- an estimate of expenses.

Fortunately, there are ways to help control costs and prepare effective budgets.

Cost Controls

Job estimates and cost planning are difficult. A few minor tweaks could save you more than you realize.

Cost Controls

• Renegotiate contracts annually• Be more precise in job estimates• Ask customers tips (this helps your

budgets and deepens your relationships simulataneously)

• Streamline your purchasing control system

• Monitor inventory/materials for cost changes

Budgeting Tips

Determine breakeven levels

Understand how to calculate overhead costs

Determine labor costs

Budgeting Tips

Employ a variable-based budget

Determine actual job costs for each order

Predict cash flow needs with appropriate systems

There are more ways to save money and set effective budgets for your construction business than you might realize.

Put them to use and watch your profits grow!www.cbs-cbs.com/ www.facebook.com/CorporateBusinessSolutions www.youtube.com/user/cbsadvisers