Additional Services
The Plumbing Enlightenment job costing service is a retrospective analysis of the contractor's actual cost of a project after completion of the job. The contractor will be able to compare Plumbing Enlightenment's costing with Quickbooks® or any other accounting software. Most contractors rely on the accounting computer to job cost. This method does not allow for cross checking and verification of the estimate. Therefore, unknown estimating mistakes may never be detected and repeated over and over again.
By requesting a job costing on a completed project, you will be able to see the inside working of your company. This inexpensive tool will allow you to make confident decisions that will have a positive effect on the company, profits, and you.
Why Job Costing?
If you do not cost your projects, you are doing only half of the work. This is something like when you only eat the ice cream off of the cone and then, throw the cone away.
What about accounting system job costing?
Only a few accounting programs offer 'true' job costing. In most cases, liabilities are not included in the accounting program job costing module. This can leave a very serious hole in the actual cost of a job.
For instance, a $100,000 project costs out to $90,000 on the computer accounting program. Great. You made $10,000. The down side is the liabilities for that period of work were 9% of the job. Not that great. This is where job costing could have helped identify a possible gap in costs.
The contractor benefits from job costing in many ways. Job costing provides a means of financial satisfaction to know that a profit was made on the project. On the other hand, information can be gained through loss observed and decisions can be made to avoid the same loss issues.
The most obvious benefit is time. Unfortunately, there are only 24 hours in a day and the plumbing contractor needs 30 to 55 hours each day.
Other benefits are:
- Allows the management team to remain focused on preparation.
- Real information.
- Simple reports that identify issues.
- Allows flexibility in adjusting proposals.
- Confidence in cost management.
Discrepancies
Job costing can reveal all types of discrepancies from material cost to theft.
Through cost to estimate evaluation, the job costing service can detect supplier discrepancies in bid quoted materials, as well as catching an unethical supplier. This happened in my own business. A supplier overcharged quotes by $15,000.
In severe cases, an audit of costs may be warranted.
Other discrepancies involve theft, management, production, estimating capabilities, installation issues, labor theft and others.
Production
Job costing allows the contractor to identify employee productivity and crew productivity.
For example, Job "A" is estimated at 100 hours:
- Scenario 1
A total of 900 hours is used. This will result in a
-10% rate of production.
- Scenario 2
A total of 1100 hours is used. This results in a 10% rate of production.
Scenario 1 showed at under hours. This information if consistent could serve your company an advantage by estimating 5 to 10% lower on hours while maintaining profit levels.
Job costing can identify job skill levels of crews based on job types and number of hours to complete. Job to job comparisons can be made. Crew to crew comparisons can be made. Job costing will provide the contractor with the information needed to identify crew levels for all of his work. Crews can also be used to adjust labor during the bidding process and could be the critical element to secure the next project profitably.
Plumbing Enlightenment Job Costing is a convenient, economical service that provides the critical information necessary to increase profits.
- Labor factoring
- Cost factoring
- Production issues
- Crew performance
How to Obtain the Job Costing Service
If you are interested in this service, call: 440-236-3131.
You will be asked for:
- Project/job file
- Plumbing supplier material invoices
- Plumbing supplier material quotes
- Original estimate/proposal
- Employee time sheets
- Other invoices
- Labor costs by employee
- Change orders
- Delivery Costs
- Take off sheets/counts
Our easy to follow two page check list will be provided for your convenience to ensure you are providing the needed information for the job costing service.
A comprehensive report will be provided to the contractor for review. The report will provide detail for detail with the original system. Information included will be cost comparisons for quoted materials, cost comparisons for non-quoted materials, production percentage rates with a complete explanation and total % gross profit.
All information will be kept in strict confidence.
Billing Basis
Special quotations are determined by either the Job Costing Fee Schedule or special fee quotes. Shipping charges are not included and are charged separately.
Please contact us for more information. Call 440-236-3131 and ask for the Job Costing Service.
Plumbing Enlightenment's Job Costing Service provides a convenient, cost effective tool for managing the busy contractor's business.
Additional Services:
As-Built Drawings |
On-Site Plotter Printing Services
Project Prospecting |
Job Costing |
Company Financial Overhead & Burden Analysis
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