budgeting for contractors
TRANSCRIPT
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