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Q: I’M A CONTRACTOR. DO I NEED TO JOB COST?

A: Job costing is a vital aspect of construction project management. It is an essential tool for managing construction projects, and it is used to determine the profitability of a project, which is critical for the success of any construction business.

Here are some of the key benefits:

Budget Control - Job costing enables you to accurately estimate the expenses related to a particular project which helps ensure the project is completed within the budget.

Accurate Bidding - Accurate job costing provides you with the information you need to submit accurate and competitive bids.

Cost Tracking - Job costing allows you to track the actual costs of a project against estimated costs so you can identify any overspending and adjust.

Profitability - By accurately estimating costs and tracking expenses, you can determine your profit margin for a particular project.

Future Planning - Effective job costing can also help you plan for future projects and make informed business decisions.

Successful contractors employ robust job costing processes to focus their efforts and direct strategic initiatives. Visit www.eidebailly.com/construction to learn more and get guidance on construction job costing from our experienced construction industry advisors.