Numerous construction companies are struggling to keep their project job costs under control. No matter how big or small these projects are, problems always occur, and such problems are not about construction but rather about how project managers manage their job costing – one of the biggest concerns for construction companies.

You can know all about construction processes and do your job well, but still end up with major financial losses with your projects. As  projects get larger, expenses and control over projects grows more difficult to stay on top of. Reliable construction project management software helps to avoid additional costs, as well as to track which job processes are the most profitable. That is great information to have handy for future projects.

Job costing activities

Job costing tracks the true cost of labor, materials and overhead for any given job. Material costs sum up the total cost of these details and determines the cost to the project where these details are used. Labor costs concern sub-contractors, who charge according to their contract and usually by progress payment. Overhead costs sum up all expenses involved with the specific construction site and project.

Review your job costs by breaking the process down

The estimator will usually put all calculations into a spreadsheet before the start of the project, and the project manager can upload all estimated units, tasks and processes into project management software. Later , this provides an easy and efficient way to track and manage actual costs against the project’s budget to analyze how work tasks are progressing. Job costs are typically cut down into smaller units and codes and tracked to the specific project.

Job cost and profit

A job costing management tool provides good awareness about the project tasks where money is being spent, which can be easily compared against the estimated costs. This collected information is helpful when it comes time to analyze project billings. With that information, project managers can then calculate different project stages and levels of productiveness, while at the same time mitigating project expenses.

Asking the right questions

To get the most of out of job cost management, it is essential to think about the following:

1. Does this data help to improve project manager processes? What can be done to reduce costs and operate more smoothly?
2. Would job costing information be helpful for the whole project management?
3. Should some project processes be changed in order to run more efficiently?
4. Which parts of the project processes are the most expensive? How can these processes be improved?
5. Is the project running according to budget?


It is recommended that construction companies use project job costing management software to help projects run more accurately and and add quality.Your project can be at risk if finances are not being managed efficiently. Set your job cost management in place and run your project on profit.