Скачать или смотреть How To Grow A Construction Business - Part 2 - Tracking Labor

In my previous video, I discussed how to grow a construction business by using the margin required for your business to determine your markup.

In part 2 of this series, I am going to show you a simple method to measure your labor.

Labor is usually the largest cost for a construction business. If you don’t measure your labor in the same way in which you estimate it, you’ll never know if you’re making a profit on your largest cost.

Implementing this labor tracking system will take time. You have to develop the tracking system (Billing Codes), train your employees on how to fill out their time cards, and develop a system to analyse the results.

This is the second of four “Slow-Growth Disciplines” that will help you grow your construction business.

DISCIPLINE 2 – TRACKING LABOR USING BILLING CODES

Construction projects start with an estimate or proposal for the scope of work.

This scope of work is developed line item by line item and a cost is associated with each line item.

Each line item will consist of one or a combination of the following costs:

Labor
Materials
Subcontractors
Equipment

Estimating the correct amount of labor for each task is a skill that takes time and experience to develop.

Communicating the LABOR BUDGET is vital to achieving the production goals of your project.

But communicating the LABOR BUDGET to your team will not lead to growth if you do not also track the labor spent on the project.

DESIGN A BILLING CODE SYSTEM

Each labor line item in your proposal has a quantity of man-hours associated with it.

A Billing Code system assigns a unique identifier (a number) to each of the tasks on the proposal. When your employees spend time on that task, they report that time on their time cards according to the Billing Code assigned to that task.

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