Failing to track your project budget is a considerable risk.
Construction project budget tracking software helps discover problems and avoid project cost overrun on-site. According to a survey from PMI, the value of project budget tracking solutions can be seen in statistics: “For the first time in the last five years of this research, we see that more projects are meeting original goals and being completed within budget.” Companies that do not value project budget management have more project failures. In fact, according to Harvard Business Review, 27% of projects go over their intended cost budget.
Budget and job cost tracking will keep your project under control- and your stakeholders happy.
To realize the value of construction budget tracking, let’s check some findings about efficient project management, how it improves business performance, and how successful project managers prioritize it. Managing budget and tracking your job cost is essential to any project. Staying on top of project expenses is also one of the most complex tasks in the industry, as tracking costs involves estimated budgets, analyzing and measuring results, and updating ongoing project processes and forecasts. The process begins and remains in place until the project is accomplished and delivered.
Monitoring and tracking costs
To track something, it must first be recorded and documented. By controlling a construction budget on a regular basis, you can make necessary customizations to keep your project on track. It is important for the project manager to identify when costs are derailing from the budget and handle those changes. Eventually, this allows the project to run smoothly.
Calculating and analyzing tasks
At the end of every reporting period, it is crucial to revise your tasks. See how much money the project units have taken from the budget compared with actual costs. If this has been carried out properly, the numbers should be close to each other. A comprehensive construction job costing software will give you a transparent and accurate overview of your project task results.
Forecast updates
There are many uncertainties in the construction industry, and as we all know well, projects seldom go according to plan in every detail. Any changes that have been made should be updated in your forecast report. Actual costs can be lower or higher than estimated, and forecasts can sometimes be falsely calculated from the beginning of the project. If a work unit of the project has changed or the price difference of a job has changed, the costs should be updated and documented.
Continuous improvement
The project manager is ultimately responsible for the project’s success. Good collaboration with company units and stakeholders about any unexpected changes in the early stages will leave more space and room for maneuvering, and tracking your construction budgets and job costs properly will result in less pressure on your shoulders.
Budget and job cost tracking as the solution for project managers
While construction project management cannot predict all obstacles that may arise, using an efficient project budget-tracking solution can improve processes and allow jobs to go as smoothly as possible. Companies and project managers who value good project budget tracking and job cost tracking software practices have a considerable advantage over competitors and enjoy the many benefits. Make sure you are keeping up!