Armada ERP Budgeting & Costing Module
In order to succeed in a construction business you have to be able to mark up the price of your jobs to cover overhead expenses and make a decent profit. The problem is how much to mark it up. You don’t want to lose jobs because you charge too much, and you don’t want to work for free because you’ve charged too little. If you know how much to markup you can apply it to your job costs and arrive at the right sales price for your work.
Armada ERP Budgeting & Costing module supports you with the background and the calculations necessary to easily figure the markup that is right for your business.
Job costing is the most complex aspect of construction accounting. Contractors must be able to accurately predict, record, and control the cost of each job. Materials, labor, subcontractors, & equipment need to be tracked and monitored for each job.
The median industry gross margin in construction remodeling was 17.62 percent, and the industry average was 19 to 20 percent. The average operating percentage was 3.83 percent, and the average cash and asset percentage was between 15 to 16 percent.
Estimating and costing thus serves the number of purposes in the construction process including preparation and finalize of bids and cost control. The main purpose is to provide to volume of work for cost control and to see that the adequate options of materials are explored during the execution of the project.
Have a control in Expense incurred by your company for labor, material, equipment, financing, services, utilities, etc., plus overheads and contractor’s profit with the help of Armada ERP Budgeting & Costing module