With volatile fluctuations in the price of building materials, contractors and builders in the construction industry must pay close attention to current costs on lumber, ready-mix concrete, and steel to create accurate bids. Even small discrepancies in materials estimates can contribute to additional expense over the length of the project, which not only decreases your margin of profit, but can actually generate substantial losses on the job.
Moreover, the administrative time consumed in hunting down and negotiating prices can lengthen project lead times. Therefore, to ensure profitable and efficient job success, businesses that operate in the construction industry must implement productive solutions for controlling, managing, and tracking materials costs.
Instead of simply hiring more employees to perform these tasks, and subsequently adding to your operational expenses, a better response involves incorporating new software systems that combine today’s real-time technology and instant processing procedures, offering the ability to generate procurement and billing management solutions for your business.
Your project managers need access to up-to-date information on vendor pricing to generate accurate estimates, throughout the length of the project. With innovative cloud based systems, purchase orders, requisitions, and emergency item requests are updated automatically, and routed to the appropriate job file for a streamlined approval process, simplifying project forecasts and estimates to completion.
These programs also generate billing solutions for the construction industry in the form of integrated financial tracking. Managers can instantly view the budgeted versus actual costs, by accessing at a glance any in-process or billed invoices that pertain to the job.
Innovative software give you the tools to constantly monitor every transaction on the contract, maintain close communication with your vendors, and establish automatic invoicing, allowing you to effectively control your construction material costs and optimize your business cash flow. Click here to view a free 30 minute on-demand training around Project Costing for Construction Companies.