How to keep your site margin under control | archim
How to keep your site margin under control
A simple system to monitor costs and revenues project by project, without waiting until the end of the job.
In short: How to keep your site margin under control
A simple system to monitor costs and revenues project by project, without waiting until the end of the job.
- •1. The three data points you need
- •2. How often to check
- •3. Warning signs to watch
Site margin isn't a number you discover when a project ends. If you only look at it after the work is finished, it can be too late to fix. In this guide we set up a simple but effective control system using data you already produce every day.
1. The three data points you need
To calculate margin in real time you need: contract or estimated revenue, logged labour hours, and material, equipment and subcontractor costs. Everything becomes manageable if every line is linked to the right project.
2. How often to check
Ideally weekly or biweekly at most. If you wait for month-end, costs pile up and corrections become harder. A quick check at the end of the week lets you act on crew allocation, orders or work stages.
3. Warning signs to watch
Watch three things: the average labour hourly cost versus the budget, material spend versus the bill of quantities, and subcontractor invoices exceeding budget items. Even small weekly variances add up to big numbers at project close.
4. What to do when margin drops
First understand whether the variance is real or if some revenue hasn't been invoiced yet. Then check for excessive cost items: a more expensive material, unbudgeted overtime, a subcontractor that expanded the scope. Act on the variables you can still control.
What to do next
Margin control doesn't require a management-control department: it just needs data collected on site and reviewed regularly. archim automates the next step by aggregating hours, materials and documents for each project.
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