Many organisations in Australia are job or project-based organisations and the days of simply knowing you are making reasonable EBITDA have gone. Measuring performance at a project or job level is crucial to building healthier businesses.
We frequently hear from prospective clients who are uncertain if they are making money on a job or project. Unfortunately it’s all too easy to keep working on particular project or job types that deliver very little profits or fail to return profits at all.
Job costing or project costing can take many guises, but having your finger on the pulse is a necessity. Different forms of job/project costing could include the following:
- Costing of a project/job
(making something that takes time or installing something on a client’s site where time, materials, plant are all required)
- Costing of a machine and labour
(providing a service that involves plant and labour)
- Costing your own internal assets
(what is the life time cost of the asset and is it economical to still have it working)
- Costing of an R&D project
(Your need to invest in a product before its launch to market, such as a Life Science company developing drugs)
- Costing of new builds
(Capture the cost of a new property/facility or a refurbishment in order to capitalise when construction is complete)
Whatever type of job/project costing you carry out it’s critical to have the details of this information in real-time and for the life of the project.
Greentree allows you to hold all the details of your project forever – to any level of detail – including sub jobs or variations. The ability to hold information such as:
- All purchases and materials from inventory to be held on the job/project
- Time allocated to the job/project
- Plant costs
- Actual and Committed Costs
- Original, revised estimates
- Scanned details held against the project (Plans, Estimates, etc)
- All correspondence held against a project or job (letters, emails, etc)
Good job/project costing starts in the bidding or estimating process. Unless you establish appropriate, clearly defined standards here, you have nothing against which to compare actual performance.
Greentree provides organisations across Australia with true visibility of jobs/projects helping organisations deliver more profitable jobs in the timelines planned.